On average, 82 per cent of consumers in France, Germany, Italy, Spain, the UK, and the US have less confidence to spend, according to a recent study. With the holiday shopping season fast approaching, rising prices are negatively impacting consumer confidence. In terms of spending, apparel, footwear, and accessories are among the several categories that consumers are cutting back on.
The survey titled ‘The State of Consumer Spending: Inflation’s Impact on International Consumers’ was carried out by predictive analytics platform First Insight.
At least three-quarters of consumers in all six countries are less confident to spend, ranging from 75 per cent in France to 86 per cent in Germany. German consumers report the most significant inflation-induced change in their shopping habits and say they are shopping more for deals and staying within a budget. On average, 41 per cent of consumers surveyed feel that they get the best value by shopping online and receive the lowest value by shopping with independent retailers.
“Inflation is negatively impacting consumer confidence not only in the US, but throughout the UK and Western Europe as we enter the critical holiday shopping period,” First Insight CEO Greg Petro said in a press release. “As belt-tightening becomes the norm, retailers and brands globally will need to work harder to identify greater opportunities to offer targeted promotions and incentives to engage with consumers, while honing pricing and promotion strategies to safeguard margins.”
The threat of recession concerns at least 92 per cent of consumers in every country, with the UK most concerned at 96 per cent. Many consumers — 66 per cent on average — believe that a recession is already underway. Almost one-third of consumers overall acknowledge that they are saving less because of high prices, and 17 per cent report that they are tapping into savings to cope with the cost-of-living crisis.