UK consumer sentiment is muted as Britons this year are set to “spend, not splurge” in the run-up to Christmas, said a recent report, with many switching brands, modifying out-of-home activities, and shopping online.
As per McKinsey & Company’s 2021 European Consumer Sentiment Survey, spending intent has improved since February 2021 with the majority of UK consumers saying they have engaged in omnichannel research of their purchases and have switched brands or retailers when a product is unavailable.
Only 33 per cent of UK shoppers plan to splurge before the end of the year compared to 47 per cent who said they planned to do so back in February, as per the report.
The research has also suggested that concerns over product availability among shoppers led them to change brands or retailers.
Of the 51 per cent of UK consumers who encountered a stock shortage recently, 33 per cent said they had purchased the product at a different retailer. Furthermore, 31 per cent admitted to buying a different brand or similar product at a different retailer, while only 11 per cent waited for the product to be back in stock.
The findings are based on survey data collected in the United Kingdom from October 15 to 22, 2021.
Social media continues to shape purchasing habits of the Britons as some 84 per cent of Gen Z and 73 per cent of millennials expect social media to have an impact on what they buy compared to 38 per cent of Gen X and only 10 per cent of baby boomers.
Eric Hazan, senior partner at McKinsey & Company, said: “Spend not splurge is this year’s holiday sentiment. Retailers will need to navigate product shortages to obtain their share of wallet, as consumers rarely wait for stock availability. Value is also a deciding factor, as consumers cite this as the main reason behind brand switching. The opportunity for retailers sits largely with social media, where holiday purchases can be influenced.”
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