Almost half of consumers buy less clothes and shoes, while more than two-fifths buy less electronicsaccording to an investigation by an accounting firm EY†
More than a third (37%) of low- and middle-income consumers now only buy essentials, the survey finds, an 11% increase compared to February, while 32% have switched to cheaper brands to try to save money†
Nearly half say they now feel worse off financially, while only 39% say they are in control of their lives.
Higher income earners were more optimistic about their spending despite inflationary pressures, with 61% saying they were excited to spend money on things that suit their needs. lifestyle†
EY UK&I Retail Lead Silvia Rindone said: “Our research shows that instead of consumer behavior remaining relatively consistent, we see consumers drifting to two extremes. On the one hand, there are cash-strapped consumers who spend every cent in the on the other hand, those who are willing to spend money and want retailers and brands to incentivize and entice them to do so.
“Navigating this K-shaped profile in consumer behavior is key to surviving and thriving in the new economic landscape.”