The UK is on the cusp of experiencing a surge in spending, and the fashion industry is poised to benefit greatly from this trend, as indicated by a recent report. With restrictions on consumer activities being lifted, there is a strong pent-up desire among shoppers to open their wallets, driven by a combination of increased disposable income and a longing for a return to normalcy after a challenging year. Given that foreign travel may still be limited for a while, much of this anticipated spending is expected to remain within the UK.
A recent survey of consumers carried out by property consultant CACI revealed that 74% of respondents have either seen an improvement in their financial situation or no change as a result of the pandemic. This, along with the potential easing of restrictions and the successful vaccine distribution, has instilled a sense of hope and optimism in consumers. Consequently, 30% of those surveyed are planning to pick up where they left off on major life events that had to be postponed, such as buying a new car or home, as well as splurging on new additions to their wardrobe.
Despite the surge in online shopping during the pandemic, there is still a strong preference among consumers for the in-store shopping experience. In fact, 55% of respondents have indicated a desire for permanent safety measures in stores. This safety-conscious mindset is likely to shape consumer behavior going forward, with an increased focus on brand ethics and social responsibility. Companies that demonstrate transparency and a dedication to social causes are expected to attract more consumers, with 67% stating that this will influence their purchasing decisions.
In addition to the increase in spending, consumers have also reconnected with their local communities in a significant way. This shift presents a valuable opportunity for brands to highlight their local connections and engage with consumers on a more personal level. To thrive in this evolving landscape, retailers will need to embrace an omnichannel approach that addresses the changing preferences of consumers. As the UK prepares for a post-lockdown economic resurgence, the fashion industry stands to gain substantially from the anticipated upsurge in spending.
For more information on consumer spending trends in the UK, check out these useful links:
BBC News
Financial Times
