Less than one in ten consumers say they would reduce their money-saving shopping behaviours
Consumers provide insight into whether their buying behaviours are here to stay
Consumers provide insight into whether their buying behaviours are here to stay
New research released today by KPMG provides 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 3000 UK 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 brand, value and loyalty goods buying as 2024 has progressed.
KPMG was keen to explore whether consumers would still continue the same actions, even if the pressure on their essential costs eased in the months and years to come.
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 brand / value produce (9%).
- shop less at discounter / lower price stores (9%).
- buy less promotional / discounted goods (6%).
- use retailer loyalty schemes less (6%).
Two-thirds of consumers said that they would save any extra funds.
While 14% said they would buy more sustainable or ethical produce, and 12% 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, reducing their average monthly spend by £72 on average compared to January.
The majority of the rest of consumers polled reported spending at the same level as when 2023 ended.
Commenting on the findings, Linda Ellett, KPMG UK’s Head of Consumer, Retail and Leisure, said:
“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.”
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Buying at lower cost is also likely a key factor that is driving a fifth of consumers to say that they have bought more pre-owned goods so far this year. The popularity of the circular economy doubles (to 33%) amongst those aged 18-24, and across all age groups, females are twice as likely to say they are buying more pre-owned goods this year than males.
Amongst those spending disposable income, travel is the most common way that consumers say they have treated themselves so far this year, and the most popular choice for big ticket spending in the remainder of the year. A third of consumers report having taken a holiday in 2024.
Full results of the survey follow below.
ENDS.
Notes to Editors
One Poll, a member of the British Polling Council, surveyed 3000 UK consumers online between September 1 and 6 2024 for KPMG UK.
The following questions were posed to 3000 consumers, unless it says otherwise:
How are your essential costs (e.g., mortgage/rent, energy, fuel, food) affecting the rest of your spending so far in 2024? Compared to when 2023 ended.
- I have had to cut back my non-essential spending: 48%
- My non-essential spending levels remain the same: 43%
- I have been able to increase my non-essential spending: 5%
- Not sure: 4%
To 1428 Consumers (who have cut non-essentials): Compared to when 2024 began, how much less on average are you spending on monthly non-essentials?
- £1-10: 5%
- £11-25: 13%
- £26-50: 25%
- £51-75: 18%
- £76-100: 20%
- £100-150: 9%
- £151-200: 5%
- £201+: 5%
Average: £71.90
To 1428 Consumers (who have cut non-essentials): Since 2024 began, which of the following non-essential spends have you reduced your spending on? (Select all that apply)
- Eating out: 64%
- Clothing: 57%
- Takeaway: 53%
- Food and drink shopping 38%
- Leisure Travel / Holiday(s): 35%
- Beauty products and services 32%
- Experiences: 30%
- Home improvements: 28%
- TV or music streaming services: 26%
- Technology: 20%
- Non-commuting vehicle/transport use: 16%
- Fitness and exercise: 16%
- Meal delivery kits: 14%
- Children’s clothing and toys: 10%
- Pet products: 9%
- None of the above: 1%
To 142 Consumers (who have increased non-essentials): Since 2024 began, which of the following non-essential spends have you increased your spending on? Top five:
- Leisure Travel / Holiday(s): 39%
- Home improvements: 31%
- Clothing: 30%
- Eating out: 30%
- Food and drink shopping: 30%
- Which, if any, of the following have you done more of when shopping so far in 2024, compared to when 2023 ended? (Select all that apply)
- 33%: Buying own brand / value products
- 32%: Buying promotional or discounted items
- 31%: Making use of retailer loyalty schemes to get lower prices
- 31%: Buying fewer items
- 27%: Buying lower price branded produce
- 24%: Shopping at less expensive retailers
- 23%: Shopping at multiple stores to find products at their lowest cost
- 17%: Buying pre-owned items
- 17%: Cancelling monthly subscriptions
- 16%: Use savings when making purchases
- 15%: Use credit card(s) when making purchases
- 14%: Shopping instore rather than online
- 14%: Switch products due to quantity shrinking but price remaining the same (shrinkflation)
- 13%: Shopping online rather than instore
- 10%: Choosing lower cost monthly subscriptions
- 9%: Use buy now pay later when making purchases
- 8%: Buying products or services due to their sustainable or ethical credentials
- 19%: None of the above
In which, if any, of the following ways have you ‘treated yourself’ so far in 2024? (Select all that apply)
- Holiday / weekend break: 31%
- Sit-down meal out: 22%
- Chocolate, dessert or sweets at home: 21%
- Takeaway at home: 20%
- Clothing and footwear: 19%
- A coffee out: 18%
- Alcoholic drink at home: 18%
- Out of home entertainment (e.g., cinema, gig, theatre, etc.): 13%
- Alcoholic drink out: 13%
- Fast food: 12%
- Make-up or skin care: 8%
- Beauty services (e.g., manicure, massage, etc.): 7%
- Toiletries: 6%
- Premium range meal at home: 5%
- Jewellery and accessories: 5%
- None of the above: 4%
- N/A – I have not been able to treat myself so far this year: 7%
If the pressure on your household budget were to ease, giving you more disposable income, which, if any, of the following would you do? (Select all that apply)
- Put more into savings: 60%
- Pay more for products due to their sustainable or ethical credentials: 14%
- Use credit card less as a way of purchasing: 13%
- Buy more branded products: 12%
- Buy less own brand/ value products: 9%
- Shop less at discounter/ lower price stores: 9%
- Use buy now pay later less as a way of purchasing: 8%
- Buy fewer pre-owned goods: 7%
- Buy less promotional or discounted items: 6%
- Use retailer loyalty schemes less: 6%
- None of the above: 18%
Have you bought any of the following ‘big ticket’ items so far in 2024? (Select all that apply)
- Holiday(s) (including booked but not yet taken): 34%
- Home improvements (e.g., redecorated): 17%
- Personal technology (e.g., mobile phone, laptop): 17%
- Home appliances (e.g., fridge): 16%
- Home electronics (e.g., TV): 11%
- A petrol or diesel vehicle: 9%
- A home: 5%
- A battery electric vehicle: 4%
- None of the above: 37%
Which, if any, of the following do you plan on spending disposable income on in the rest of 2024? (Select all that apply)
- Holiday(s): 32%
- Paying essential household costs (e.g., food, energy, fuel, mortgage/rent): 29%
- Home improvements: 23%
- Home appliances: 11%
- Technology (such as mobile phone): 9%
- Moving home: 5%
- A petrol or diesel vehicle: 6%
- Paying down the existing mortgage: 9%
- Home electronics: 8%
- A battery electric vehicle: 3%
- Not sure: 9%
- N/A – I don’t plan to spend any of my savings in 2024: 13%
So far in 2024, what has been your top consideration when purchasing goods and services? (Select one) Price: 50%.
Other than price, what have been your top considerations when purchasing goods and services so far in 2024? (Select up to three)
- Quality: 65%
- Convenience: 39%
- Loyalty benefits: 27%
- Customer experience: 18%
- Environmental sustainability: 17%
- Health benefits: 16%
- Data privacy: 8%
- Other ethical considerations: 3%
- Other: 1%
- Not sure: 8%
Media contact:
Steven Reilly-Hii, Media Relations Manager, KPMG LLP, E: steven.reilly-hii@kpmg.co.uk
About KPMG UK:
KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.
KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 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.