Spend & Splurge! Shoppers plan to loosen purse strings as lockdown lifts
| 10th June 2020
The retail industry has received a welcome boost after research revealed that cautiously optimistic consumers are preparing to loosen their purse strings when lockdown ends.
Last week saw the reopening of car showrooms and outdoor markets, while non-essential shops are about to open their doors following a three-month enforced closure.
And now a Consumer Confidence Survey has found 61 per cent of UK adults expect to spend the same or more on household purchases than they did last year.
Another nine per cent are preparing to spend a lot more.
This is likely to be music to the ears of the embattled High Street, with respondents expressing their intention to purchase goods such as carpets, furniture, and electrical products for their home.
The nationally representative survey of 2,600 adults found that despite going through a bleak three months, two-thirds are confident enough that their life will eventually go back to how it was before.
However, while seven per cent of UK adults are expecting an above inflation pay rise, a quarter fear they will suffer a fall in annual income, while 18 per cent think they will have to look for a new job.
A consequence of this is a transformation in the way savvy-spending Brits buy their food.
Cost-cutting is key for many, with 16 per cent planning on using the same supermarket but being more bargain conscious, while a fifth will be opting for cheaper stores to do their food shop.
Fewer than half (40 per cent) of those questioned by OnePoll said they would go back to how they shopped beforehand.
But 15 per cent are going to use supermarket delivery services more – which could be a welcome shot in the arm for Britain’s van manufacturing sector, particularly among firms which produce zero emission vehicles.
The property industry can also expect a boost, with 14 per cent of respondents saying they will relocate or move to a new house.
This figure is highest among 25-34 years olds (23 per cent).
This is tempered by a fear that house prices will fall. Twice as many (35 per cent) Brits expect to see a drop in prices than those who think property in their area will increase in value (18 per cent).
However, this could be a positive development for first-time buyers and those looking to climb the property ladder.
The travel industry also has some positives after a torrid six months, with one in 10 Brits admitting they have missed their foreign trips so much they are planning on going away more than they did last year.
Of the 2,600 surveyed by OnePoll, 495 identified themselves as managers, directors, or business owners.
More than half (52 per cent) of these said they expected their business to come out of the pandemic the same or better than it was last year.
And four in 10 expected their business to come out worse, while one per cent feared going bankrupt or being forced to close.