90% Plan to Reduce Non-essential Spending, Impacting Retail Industry

  • 90% of UK consumers plan to cut back on non-essential spending
  • 41% expect cost pressures to impact spending habits until at least end of 2023
  • UK households to cut £887 of discretionary spending through April 2023
  • Groceries, fashion, and restaurants top areas for cutting back
  • 14% of households financially immune to cost pressures
  • Gen Z most likely to cut back on dining out
  • Retailers must adapt to ‘Cut Back Economy’ with customer-centric strategies

A study by Grant Thornton and Retail Economics reveals that 90% of UK consumers plan to cut back on non-essential spending due to the cost of living crisis. The research shows that 41% expect this trend to continue until at least 2023, with groceries, fashion, and restaurants being the most affected. Retailers must adapt to survive in the ‘Cut Back Economy’ by focusing on customer-centric strategies.

Factuality Level: 8
Factuality Justification: The article provides a clear and concise summary of recent research on consumer spending habits in the UK due to the cost of living crisis. It presents relevant data and statistics from the study, including the percentage of consumers planning to cut back on their spending, the expected impact on different sectors, and the strategies retailers can use to adapt to the changing market. The article also includes expert opinions that provide context and analysis for the situation.
Noise Level: 6
Noise Justification: The article provides relevant information about consumer spending habits and how they are being affected by the cost of living crisis. However, it contains some repetitive information and could benefit from a more in-depth analysis or discussion on the potential long-term consequences for the economy and specific industries.
Financial Relevance: Yes
Financial Markets Impacted: UK retail and consumer-facing businesses
Financial Rating Justification: The article discusses how UK consumers plan to cut back on their spending, particularly on non-essential items such as groceries, fashion, and restaurants, which will impact the retail industry and household finances. This could lead to changes in consumer behavior and affect various sectors of the economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses a cost of living crisis affecting consumer spending habits and causing financial distress for many households.

Reported publicly: www.retailsector.co.uk