According to a recent report by Deloitte, consumer confidence in the UK is on the rise. However, despite this increase, it appears that British consumers are still heavily focused on finding discounts and bargains.
The Deloitte Consumer Tracker conducted a survey of over 3,000 adults in late January and found that consumer confidence had increased by nearly three percentage points to -11.4%. Although this improvement is significant, it’s important to note that the overall figure still remains in negative territory.
One area where consumers are more positive is their household disposable income. The survey revealed that sentiment towards disposable income has seen a significant quarterly improvement, with a seven percentage point increase compared to the previous quarter and a 20 point increase compared to the previous year.
Additionally, consumers are feeling more confident about the state of the UK economy, with net sentiment increasing by 32 percentage points compared to the previous year. However, despite these improvements, the sentiment measure for disposable income is still below its highest level in Q1 2021 when consumers had high levels of savings after the pandemic.
Given these findings, it’s not surprising that a larger number of consumers are still actively seeking out sales and discounts. However, Deloitte also discovered an increase in spending in sectors such as clothing and footwear. While this is positive news for retailers, it’s worth noting that consumers are still prioritizing finding bargains. In fact, during the last quarter of the year, more consumers opted for goods on promotion, took advantage of loyalty programs, or shopped on the secondhand market in order to save money or get more value from their purchases.
Clearly, despite the rise in consumer confidence, the focus on discounts and bargains remains strong. Retailers will need to continue offering competitive prices and promotions in order to attract shoppers in this bargain-focused market.
Useful links:
– Retail Gazette: Consumer Confidence in the UK Continues to Crawl
– Deloitte Consumer Tracker Report
