The global cost of living crisis has hit us Brits hard. From soaring energy prices to massive hikes in the cost of basic necessities, it seems like everyone has been forced to tighten their belts. October 2022 saw inflation rise to an alarming 11.1%, marking a 41-year-high, inevitably impacting the affordability of many goods and services – which, let’s face it, many of us had previously taken for granted. So, what do Brits’ spending habits look like now, as we near the end of 2023? A recent survey of 2017 British people sought to uncover some of the changes in attitudes toward spending. And the results make for interesting reading.
A striking 83% of consumers acknowledged changes in their purchase habits, with 24% significantly altering their spending and almost three-fifths making slight adjustments. Half of the UK population has been engaging in more extensive comparison shopping when it comes to their groceries. Meanwhile, retail sales volumes in Great Britain have recently witnessed a decline to the lowest level since February 2021, when lockdown restrictions were in full flow. And then there’s fuel sales which have recently hit their lowest levels since March 2021 with a 2.0% decrease in October 2023.
Overall, 62% of adults in Great Britain are now spending less on non-essentials due to financial strains. For example, over half of the respondents identified purchasing clothes to wear only once as the most significant waste of money. Yet, a staggering 66% of Brits admitted to squandering between £21 and £100 on clothes worn just once in the past year. The survey went even deeper in bringing to light intriguing details about the specifics of wasteful spending. Notably, the 16-24 age group confessed to the highest percentage, while the 45-54 age group recorded the highest mean value of £98.25 wasted on such clothing. Women, on average, admitted to wasting £6.84 more than their male counterparts on single-use clothing.
There were also significant reservations about using taxi services, opting for deliveries over collecting items such as groceries, and maintaining multiple subscriptions to streaming services.
And speaking of streaming services, 15% of those questioned believed they had misspent on subscriptions which average almost £80 a year for many of us. And it was largely Millennials (22.88%) feeling they had wasted the most money on subscriptions out of all the age demographics questioned. ‘Wasting money’, however, is a subjective term. What might be a waste to one could well be a well-deserved and appreciated pastime for another. With that, as spending habits adapt to economic challenges, a curious trend has emerged – the increased reliance on apps for entertainment and leisure.
The likes of Netflix, Disney+ and Prime Video lost two million UK subscribers last year; safe to say a pretty big hit for even these streaming giants. However, due to Netflix’s crackdown on account sharing, there has been an increase in the number of subscribers in 2023, with six million people globally joining the streaming app in the wake of the announcement to prohibit sharing passwords with family and friends.
Another notable entertainment category that is thriving in the face of the cost of living crisis is casino apps introduced in the UK market of late, which have seen a whopping surge in popularity. These apps offer a diverse array of games, from traditional casino favorites to modern, interactive options. Players find solace in the thrill of these virtual platforms, creating a unique space for leisure spending. The betting and gaming industry saw just over £15 billion in revenue in March 2023, as per data released by the Gambling Commission. Even without The National Lottery, the industry has still recorded huge returns of shy of £11 billion. This, quite frankly, remarkable rebound signifies recovery for the sector, which experienced a catastrophic £1.5 billion setback in 2021. The cancellation of many of the major sports events coupled with the government-mandated closure of bookies’ shops during that period prompted a shift in consumer behavior, with many bettors transitioning from sports betting to engaging in online casino games. What’s more, these latest figures suggest that this shift will become a sustained trend in the industry. In short, these apps aren’t going to go away anytime soon.
Amid tightening wallets and heightened concerns about the cost of living, Black Friday is becoming a beacon of hope for many Brits. While the latest figures on 2023’s Black Friday spending are yet to be released, research by SAP Emarsys indicates that despite the economic challenges, over a quarter (27%) of British shoppers had planned to buy most of their Christmas gifts during the Black Friday sales, nearly tripling the amount from the previous year (10%).
The lure of Black Friday deals and discounts are increasingly becoming a strategic opportunity for consumers to stretch their budgets during a challenging economic climate. We deserve a break, after all.
