54% of consumers are cutting down on discretionary spending - Indoors Beauty

54% of consumers are cutting down on discretionary spending

54% of consumers are cutting down on discretionary spending

Consumer analysis from Barclays has revealed that over half (54%) of consumers say they are cutting down on discretionary spending – particularly on new garments and equipment (63%) and consuming out at eating places (62%).

Overall spending in March grew simply 4% year-on-year, lower than half the most recent CPIH inflation price of 9.2%, as Brits made additional cutbacks to deal with the cost-of-living crunch.

However, residence enchancment and DIY shops loved month-on-month development, whereas the most recent season premieres of in style TV exhibits fuelled an increase in digital content material and subscriptions.

Other figures from the most recent Barclays report present that:

  • Spending on groceries elevated 7.1%, effectively under latest meals worth inflation figures (18.2%), as greater than six in 10 discover methods to cut back the fee of their weekly store.
  • Spending on utilities rose 39.3%, because the chilly climate persevered into March and households saved their heating on.
  • The specialist retailers’ class had its strongest efficiency since April 2022, up 3.5%, due to elevated spending at florists and card outlets for Mother’s Day (19 March 2023).
  • Brits are demonstrating an encouraging return to conventional seasonal buying developments as residence enchancment and DIY shops loved a month-on-month rise of 4.3% in March, with extra consumers beginning to spruce up their houses and gardens in preparation for the hotter months.
  • Digital content material & subscriptions noticed its highest development since October 2022, due to the most recent instalments of TV exhibits reminiscent of ‘Succession’ and ‘Ted Lasso’.
  • Gen-Z consumers are spending extra of their earnings on discretionary purchases in comparison with older age teams, together with spending twice as a lot on takeaways.
  • Just a 3rd of Brits plan to pay for actions over the King’s Coronation financial institution vacation weekend in May, with solely 8% planning nights out at bars and pubs.

Esme Harwood, Director at Barclays, stated: “The below-inflation rise in grocery spending exhibits that Brits are nonetheless attempting their hardest to shave cash off their weekly store, as vitality payments proceed to rise. Cutbacks are additionally impacting eating places, with a quantity of cash-strapped consumers even avoiding social plans that contain meals out.

“Hospitality & leisure companies will probably be hoping that the busy Bank Holiday interval supplies a lift to counteract consumers’ on a regular basis cost-savings. While predictions for the Coronation weekend are lacklustre, the outcomes from Mother’s Day are extra encouraging, demonstrating that Brits are nonetheless taking benefit of one-off moments to exit and have fun.”

The Barclays report combines a whole bunch of thousands and thousands of buyer transactions with shopper analysis to supply an in-depth view of UK spending.

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