37% of low- and middle-income UK consumers buying only essentials: EY

Inflation pressures and economic uncertainties are pushing UK consumers to cut back on shopping spending. While 37% of low-to-middle-income consumers buy only essentials, 49% buy fewer clothes, shoes and accessories, and 32% even turn to cheaper brands, according to EY UK.

Over 1,000 UK consumers were surveyed for the tenth edition of the EY UK Future Consumer Index. About 27% of all consumers said they adopt an “affordability first” mindset. Higher levels of pessimism were also noted among lower-income consumers; 46% of them admitted that they felt worse financially now compared to February. Additionally, 44% expect their financial situation to deteriorate in 12 months and only 39% feel in control of their lives, half of the 79% of high-income consumers who feel the same way.

Even middle-income consumers seem to be feeling the pinch in their pockets, with 33% expecting their financial situation to deteriorate in the coming year. On the other hand, only 15% of high-income consumers believe their financial situation will be worse in the next 12 months, with 61% of this income bracket saying they are looking forward to spending money on things. that will improve their lifestyle. , the investigation revealed.

Inflation pressures and economic uncertainties are pushing UK consumers to cut back on shopping spending. While 37% of low-to-middle-income consumers buy only essentials, 49% buy fewer clothes, shoes and accessories, and 32% even turn to cheaper brands, according to EY UK.

EY research data highlights a K-shaped recovery in which consumers in different income groups experience different rates of recovery from a recession.

“Our research reveals that instead of consumer behavior remaining relatively consistent, we see consumers drifting towards two extremes. At one end are cash-strapped consumers watching every penny, at the other are those who are willing to spend and want retailers and brands to excite and entice them to do so. Navigating this K-shaped profile in consumer behavior is critical to surviving and thriving in the new economic landscape,” Silvia Rindone, Head of Retail at EY UK&Isaid in a press release.

Fibre2Fashion News Office (NB)

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