According to a recent consumer confidence report conducted by Visualsoft, there is some positive news amidst predictions of a challenging Christmas trading period. The report reveals that although many consumers are tightening their belts, there is a subset of individuals who remain optimistic about their spending habits, particularly in the fashion, footwear, and beauty sectors. While 35% of people are planning to reduce discretionary spending, 29% anticipate an increase in their expenses over the next few months.
The report suggests that individuals are turning to more accessible pleasures when larger expenses like mortgages and holidays are out of reach. Among the respondents, fashion and footwear (48%) and health and beauty (40%) ranked in the top three categories for online purchases in the coming quarter. Only 8% of the respondents indicated that they had no intention of making online purchases in the next three months. Visualsoft’s digital platform data further supports these findings, indicating a rise in web traffic and revenue for fashion retailers, with a 5.4% increase in fashion revenue compared to the previous quarter and a 12.4% increase in footwear revenue. The report also suggests that there is likely to be a sustained demand for clothing and accessories in the upcoming months.
Interestingly, the report highlights varying levels of optimism across age groups. The survey revealed that 18-24 year-olds are the most optimistic about the UK economy (43%), while individuals aged 45-54 (23%) and 55-64 (26%) expressed the least optimism. Surprisingly, despite having higher incomes and larger disposable incomes, only 42% of those aged 55-64 are optimistic about their financial situation, whereas 66% of 18-24 year-olds feel positive about their finances.
The report also emphasizes a significant shift towards online shopping, with almost all consumers (99%) now shopping online and 79% doing so at least once a month. Approximately 35% of consumers shop online on a weekly or more frequent basis, indicating a growing preference for online shopping, even for everyday items.
Lenny Nash, CEO of Visualsoft, commented on the survey results, highlighting the polarized state of the economy. While the cost of living crisis continues to pressure people into reducing discretionary spending, 50% of consumers remain optimistic about their financial situation. Nash suggests that despite the macroeconomic challenges, there is still significant consumer spending to be captured, indicating a division between the haves and have-nots in the current economy.
For more information on consumer confidence during the Christmas period, you can visit the Visualsoft website. Additionally, if you’re interested in reading more statistics and research on online shopping trends, you can check out this article.
