Skip to content
Search
AI Powered
Latest Stories

'Brits stick to cost-cutting tactics'

'Brits stick to cost-cutting tactics'
iStock image

Many consumers have taken cost-cutting steps to balance their budget and are now maintaining that even after the pressure eased, a recent report has shown.

New research released by KPMG offers insight into whether consumers would reduce some of the buying and saving behaviours that have become more prevalent during the cost-of-living crisis if they had more disposable income available to spend.


KPMG UK’s Consumer Pulse survey gauged the quarterly confidence and buying behaviour of 3,000 consumers across regions, ages and income groups during September.

As with previous surveys, many of the changes to buying behaviour that have been increased by the cost-of-living crisis were again prevalent – including a quarter of consumers saying they have shopped at lower-cost retailers more this year compared to last, and a third saying that they’ve increased their own-label, value and loyalty goods buying as 2024 has progressed.

Posed with the scenario that their household essential costs ease, increasing their discretionary spending budget, less than one in ten consumers said they would:

  • Buy less own-label / value produce (9 per cent).
  • Shop less at discounters / lower-price stores (9 per cent).
  • Buy less promotional / discounted goods (6 per cent).
  • Use retailer loyalty schemes less (6 per cent).

Two-thirds of consumers said that they would save any extra funds. While 14 per cent said they would buy more sustainable or ethical produce, and 12 per cent said they would increase their branded goods buying.

So far this year, household essential cost levels have led half of consumers to cut their non-essential spending, saying they have reduced their average monthly spend by £72 on average compared to January. Most of the rest of consumers polled reported spending at the same level as when 2023 ended.

Linda Ellett, KPMG UK’s head of consumer, retail and leisure, commented, “As household cost pressures have ramped up over recent years, many consumers have been forced to adapt their budget – cutting discretionary spending and finding savings on their essential costs where possible. Market share for lower-price retailers has grown, as has the amount of people trading down to own brand and value goods and actively searching for offers.

“Many consumers have taken cost-cutting steps to balance their budget and are now maintaining that, but as thousands of householders come out of their mortgage fix and have to enter higher-cost deals, consumers are still cutting spend elsewhere in order to adjust. This is reflected in half of consumers telling us that they’ve cut non-essential spend so far this year, and one in three saying they are using even more cost-cutting tactics when shopping.

“Many of these behaviours when shopping are so instilled now in many of us, that even when posed with the scenario that essential costs ease, providing more cash in the pocket, few would reduce their cost-cutting buying behaviours. Consumers instead are far more likely to save any extra cash.

“This landscape of heightened price-point buying, promotional demand, and increased savings volumes continues to pose a variety of questions for retailers and for the economy generally regarding whether spending taps will be turned beyond a gradual drip.”

More for you

Volumatic welcomes new FCA rules safeguarding access to cash

Volumatic welcomes new FCA rules safeguarding access to cash

As industry leaders is cash handling, Volumatic has long supported the use of cash and the importance of maintaining access to cash for both consumers and businesses. The company recognises the importance of the new set of rules created by the Financial Conduct Authority (FCA) two months ago, to safeguard access to cash for businesses and consumers across the UK.

Since introduction, the new rules are intended to ensure that individuals and businesses who rely on cash can continue to access it and the outcome has already sparked the creation of 15 new banking hubs across the UK, including one in Scotland, with many more to follow.

Keep ReadingShow less
Jisp unveils new NPD service

Jisp unveils new NPD service

Retail technology company Jisp has launched an NPD service as part of its new Direct to Retailer business unit.

The new NPD service will allow brands to launch or trial new products in a guaranteed number of convenience store locations, with on the ground review of execution by Jisp’s retail growth manager team, and performance data and insights deliverable through its scanning technology and back-office systems.

Keep ReadingShow less
Tesco launches price cuts in Express convenience stores
File image of Tesco Express

Tesco launches price cuts in Express convenience stores

Tesco is slashing the price of more than 222 own-brand and branded products in its Express convenience stores.

Essentials including milk, bread, pasta and coffee are included in the lines which have been reduced in price by an average of more than 10 per cent at Tesco Express stores. The retail giant has made more than 2,800 price cuts across stores in recent months. With 2,048 of convenience stores at the end of the 2023-24 financial year, Tesco aims to benefit hundreds of thousands of customers from the cheaper deals.

Keep ReadingShow less
vape and cigarette
Photo: iStock

One in five ex-smokers in England now vape, study finds


Summary
1. One in five people who have successfully quit smoking in England currently vape, with an estimated 2.2 million individuals using e-cigarettes as a smoking cessation tool.
2. The increase in vaping among ex-smokers is largely driven by the use of e-cigarettes in quit attempts, with a rise in vaping uptake among people who had previously quit smoking for many years before taking up vaping.
3. While vaping may be a less harmful option compared to smoking, there are concerns about the potential long-term implications of vaping on relapse risk and nicotine addiction. Further research is needed to assess the impact of vaping on smoking cessation outcomes.


Keep ReadingShow less
Bira engages with Treasury on Budget fallout, business rate reform
(Photo by Christopher Furlong/Getty Images)
Getty Images

Bira engages with Treasury on Budget fallout, business rate reform

Independent retailers association Bira has held a meeting with members of the Treasury team to discuss concerns following its robust response to the Government’s recent Budget announcement.

The Budget, labelled by Bira as "devastating" for independent retailers, was met with widespread indignation from Bira members.

Keep ReadingShow less