Half of UK consumers say Brexit will not impact their spending in 2019 - PwC
Around half of UK consumers said that their spending habits would not be affected by Brexit but most will be more cautious in what they buy, PwC’s latest report on trends in consumer spending revealed.
When asked about Brexit, over half (60%) of consumers said it has not and will not change the amount that they will spend over the year ahead.
Consumers in the North East were least concerned with 70% saying their spending habits will be unaffected by Brexit.
Londoners on the other hand were the most concerned, with 41% saying they had already changed their spending habits and a further 14% saying that they would do so in 2019.
For those consumers who said that Brexit would be a factor, half said they'd buy less, and a third said they’d postpone big ticket purchases.
Lisa Hooker, head of consumer markets at PwC, said: “What is consistent across the board is that consumers are looking to get more for their money, with almost a third saying they will shop around more and buy more items on promotion. Pressure on consumer spending will impact the little luxuries - such as eating out - with just over a third of people saying they plan to cook at home more.”
According to the report, real earnings were set to continue increasing in 2019. Indeed, a slowdown in retail price inflation had already put more money in shoppers’ pockets.
Nevertheless, PwC’s 2019 Retail Outlook projected a period of continued slow or no growth for UK retailers in the year ahead.
So much so that retailers looking to grow would be forced into “taking market share away from other players and adapting to the more conscientious shopper.”
Retailers should focus in investing in technology, specifically in the use of artificial intelligence and data analytics to aid decision-making and to improve customer experience, the consultancy said.
They should also harness efficiencies across operating systems, transforming supply chains through the use of digital technologies and reviewing their corporate structure to explore if M&A, divestments or partnerships/collaborations can improve their health.