Consumer confidence falling faster than retail sales

Responding to GfK’s Consumer Confidence Barometer for June, which reached a new record low:

Linda Ellett, UK Head of Consumer Markets, Retail and Leisure, KPMG, said:

“Consumer confidence continues to slump, but total retail sales are not falling at the same rate. 

“The impact of the headwinds of inflation and higher prices is taking its toll on consumer demand for some discretionary goods and businesses.  But there are tailwinds still supporting spending elsewhere, in the shape of high employment, pandemic savings levels, and desire for experience-based spending.  Travel, hospitality and leisure spend is boosting sales of clothing, footwear and accessories, but could be a seasonal impact that weakens when summer ends. 

“As essential costs continue to rise, as does the risk that further discretionary goods demand reduces in line with the consistently low levels of consumer confidence that we are seeing.”

ENDS.

For interview with Linda Ellett:

Steven Reilly-Hii,

Media Relations Manager,

KPMG UK,

E: steven.reilly-hii@kpmg.co.uk ,

T: 07510 376635.

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.