Cash-strapped Britons are feeling the impacts of the cost of living crisis and have been forced to make significant cutbacks in their spending. A new study by YouGov reveals that clothing and cosmetics have been hit the hardest, with 44% of respondents reducing their clothing purchases since November.
The reduction in clothing spending is evident in two ways: 29% of respondents stated that they are buying clothes less frequently, while 10% reported switching to cheaper alternatives. Additionally, 8% of people have completely stopped spending money on clothes altogether.
Despite these cutbacks, the fashion industry has shown some resilience in recent months. This may be attributed to consumers making up for lost time, as they had been purchasing fewer special occasion attire, going-out clothes, office wear, swimwear, shoes, and handbags in the past couple of years. With lockdown restrictions easing and social events returning, many individuals have tapped into their savings to shop for these types of items.
While the spring and summer seasons have displayed some resilience, the autumn season could bring significant challenges. This will be the first season following the rapid acceleration in the rate of inflation, and companies like M&S have already warned of tough times ahead due to consumers reducing discretionary purchases. Fashion, being considered a discretionary expense for most people, is understandably taking a back seat.
The deprioritization of fashion is also apparent in the reduction of spending on events where people would typically buy new clothes. For instance, 39% of respondents have cut back on eating out, while day trips and holidays have also been affected, with 31% and 30% of respondents respectively spending less on these activities. Shockingly, 11% of respondents have had to completely cancel their holiday plans since November.
As people tighten their budgets, spending on necessities is also being reduced. Apart from clothing, 31% of respondents have had to cut back on essential food items. Spending on cosmetics, toothpaste, shampoo, and beauty services such as haircuts and manicures has decreased for 25% and 29% of respondents respectively. Additionally, 36% of people are spending less on luxury items.
The challenging economic conditions and rising inflation have compelled British consumers to reevaluate their spending priorities. Clothing and cosmetics have taken a hit as people redirect their limited resources toward more essential items. As we head into the autumn season, the fashion industry may face even greater challenges, with consumers continuing to prioritize necessities over discretionary purchases.
Useful links:
1. BBC News: UK consumers cut clothing spending amid economic uncertainty
2. The Guardian: UK high street bounces back as consumers splash out on summer fashion
