According to a recent report by consumer research platform Attest, the retail industry in the UK is expected to see a rise in thrifty and frugal shopping habits in 2023. The report identifies four key trends for the year, all of which are influenced by the combination of rising prices and lower incomes. It reveals that the overall sentiment among British consumers going into the new year is not very positive, with only 46% expressing feelings of positivity and 30% feeling a sense of negativity.
One of the key trends highlighted in the report is the cutting back on spending plans for 2023, with a particular focus on energy bills. The survey conducted by Attest shows that 61% of respondents are adopting a more cautious approach towards their spending, while only 18% claim to be spending freely. This marks a significant shift compared to the previous year, with a notable increase in “fairly cautious” spending and “very cautious” spending.
The issue of unaffordable energy bills emerges as the biggest worry for Britons in the coming year, with 59% of respondents expressing concern. This is followed by concerns about the war in Ukraine (7%) and increases in petrol prices (6%). The rising cost of living has also impacted people’s food choices, with 80% stating that price increases have influenced their food buying decisions. As a result, people have less disposable income for discretionary purchases, with 38% unable to afford eating out, which is likely to also affect their clothing purchases.
A significant shift away from rampant consumerism is observed, with a rise in discount shopping. Approximately 40% of consumers claim to be buying fewer things and consuming less, which marks an 8.5-point increase from the previous year. Furthermore, 44% of respondents plan to sell their unwanted items, indicating a potential boost in the pre-loved market in 2023. Shopping at charity and discount stores is also expected to be a major trend, with 35% of consumers actively seeking bargains in these outlets to offset the increasing cost of living.
The environmental impact of fast fashion has also come into focus, leading to a decline in the purchase of fast fashion items. The report shows that around 23.5% fewer consumers intend to buy such items in 2023. Alongside cost-saving measures, shoppers, especially older ones, are returning to physical stores. Despite having less money to spend, consumers are not reducing their shopping frequency overall. The research reveals a 6.2-point increase in people shopping “daily” and “weekly”, reaching 65%. While the pandemic initially drove older consumers to embrace online shopping, Baby Boomers are now heading back to brick-and-mortar stores. Over 40% of Boomers claim to “mostly or always” shop in-store. On the other hand, younger shoppers still prefer online shopping, with 47.2% of Gen Z and 49.7% of Millennials sticking to online purchases.
Interestingly, the report also indicates that 5.9% of Britons plan to shop less on Amazon in 2023. The impact of delivery issues faced during the festive season may play a role in this shift. Some retailers are even advising consumers to shop in physical stores to avoid potential postal strikes and weather-related delays that could result in late Christmas deliveries. This could create a lingering negative perception of online shopping for some consumers going into the new year.
Useful links:
1. BBC: How to cut your energy bills in 2023
2. The Guardian: Discount stores becoming dominant in the British fashion retail sector
