Cost of living storm clouds closing in

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

"Confidence is low, as consumers are either already struggling with rising costs, or are fearing what's looming on the horizon.

Those storm clouds are now fast closing in, with higher costs reducing the discretionary spending power of even more households this autumn and winter.

“So far this year, retail sales have somewhat defied the very low levels of consumer confidence.  But a widespread reduction in spending ability will lead to drops in demand and changing buying behaviour, both of which will impact the high street and wider economy.  The scale of the demand reduction remains unknown, but retailers do know that there will be various trade-down audiences and treat occasions.  The key to weathering this storm is to try and capture and retain those customers – from those seeking out more value products, through to those swapping meals out for premium range meals in.”

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.