‘Retailers must focus on pricing ahead of Eid for younger cash-strapped consumers’

Retailers must focus on their entry-level pricing and promotional offers this Eid in light of  lower discretionary incomes among young consumers this year due to cost-of-living-crisis, says a recent report by GlobalData.

Ramadan started on March 22 and is expected to end around April 20, but how UK consumers will celebrate Eid will be affected as they continue to feel the pinch of the cost-of-living crisis.

GlobalData’s UK Consumer Views report reveals that 11.0 per cent of consumers plan to celebrate Eid this year, with younger consumers being the most likely to do so. 24.4 per cent of consumers aged 25-34 plan to celebrate Eid, followed by 20.8 per cent of those aged 16-24 who also intend to celebrate.

The occasion is still a relatively untapped market for major retailers, but it, and other religious occasions such as Diwali, could provide great opportunities for retailers to boost their revenue and shopper engagement, says the report.

Jamel Boughedda, Retail Analyst at GlobalData, comments: “Food & drink is the most popular category consumers usually buy for Eid, with 28.6 per cent of shoppers who plan to celebrate Eid purchasing this sector, whilst gifts and clothing sat in second and third place at 20.4 per cent and 19.9 per cent, respectively.”

“The grocers are well-placed to cater to this demand, so should ensure they promote the occasion with targeted in-store ranges and curated product selections online. It is also essential that retailers time any Eid-related promotions, marketing, and ranges correctly, as 34.8 per cent of consumers purchase items just before Ramadan, and 37.1 per cent buy during Ramadan.

“Focusing on Eid during this period will help retailers better engage with their consumers and fully capitalize on the occasion.

“Retailers’ propositions must resonate with their shoppers for them to prosper, and as there are over three million Muslims in the UK, major retailers should make sure they focus on Eid, as this represents a fairly untapped market,” Boughedda concludes.