Findings from the thirteenth edition of the Ernst & Young (EY) UK Future Consumer Index suggest that 35 per cent of UK consumers expect to spend less during the upcoming festive season compared to previous years.
According to an EY poll that included 1,000 UK customers, nearly half (45 per cent) of UK consumers are getting ready for Black Friday shopping this year despite the country’s economic worries.
With 87 per cent of consumers expressing fear about these prices, rising living costs—particularly those related to energy, water, and heating expenses—are having an impact on consumer views.
According to the index, younger consumers—millennials, or those between the ages of 26 and 41 in particular—are showing signs of a more marked reduction in spending, with 40 per cent of them planning to do so, compared to 27 per cent of consumers 58 and older.
Younger customers face particularly severe financial difficulties; of them, 59 per cent are concerned about rising interest rates, compared to only 25 per cent of senior shoppers (those who are 42 years of age and older).
According to the study, there is a general downward trend in discretionary spending, with over half of UK consumers (51 per cent) indicating that they will cut back on large purchases. Furthermore, 43 per cent of customers are making less purchases of apparel and shoes.
Despite these reductions, 18 per cent of consumers are setting aside money for little indulgences, suggesting an emphasis on luxuries.
Although consumers are returning to physical establishments, the survey highlights the growing trend of online deal seeking over the holiday season. Just 6 per cent of buyers intend to look at possibilities in-store, while 64 per cent of them plan to conduct their research online.
According to the survey, “deal-savvy younger consumers” are the ones driving this online trend, with 28 per cent of millennials wanting to boost their online orders, up from 16 per cent the previous year.