Retailers must invest in bank holidays in August as promotions are key to encourage spending, states a recent analyst, saying that the forthcoming bank holiday marks the final extended weekend before the Christmas season for 2023.
As bank holiday spend for 2023 has so far been dampened by high inflation, retailers must capitalize on the falling inflation levels to entice retail spend by increasing marketing in the lead up to next bank holiday on the 28August. Promotions on items such as food and drink for picnics and BBQs, will be key to encourage consumers to make the most of the last of the summer weather, says GlobalData, a leading data and analytics company.
Tash Van Boxel, Retail Analyst at GlobalData, comments: “With many enjoying time off work on bank holiday weekends, consumers are opting to use their time off to catch up with family and friends. As a result, leisure expenditure is supported during bank holidays, as consumers are more willing to spend on socialising, with 50.2 per cent of consumers agreeing that bank holidays encourage them to increase spend on socialising, according to GlobalData’s UK consumer survey for July.”
In comparison, only 29 per cent of consumers stated that bank holidays encourage them to spend more on retail.
Van Boxel continues: “Retail spend is often de-prioritised when disposable income is tight, as consumers aim to maximise time spent with loved ones instead of indulging themselves.”
Indeed, bank holiday spend in the first half of the year was impacted by persistently high inflation, with 60.6 per cent of consumers agreeing that they were forced to cut back on spend on bank holidays this year on account of the cost-of-living crisis.
Van Boxel concludes: “Retailers must invest further on marketing promotional events and provide competitive discounts to encourage volume and sales growth on bank holidays, with 70.1 per cent of consumers agreeing that shops should do more promotions around bank holidays.”
