Customers who’ve managed to save lots of throughout the pandemic will subsequent yr, on common, spend a sixth (17.9%) of the quantity they’ve saved.
The discovering comes from a KPMG survey of three,000 UK customers about their monetary confidence and spending intentions for the approaching twelve months.
A 3rd of these polled stated they are going to give extra consideration to sustainability when making purchases in 2022 than they did in 2021.
When requested what quantity of pandemic financial savings they are going to spend in 2022:
- One in 5 (20%) stated 1-10%.
- An extra 20% stated 11-25%.
- One in ten (10%) stated between 26-50%.
- 7% count on to spend over half.
- 17% stated they are going to spend none.
- 1 / 4 (26%) stated they haven’t been in a position to save throughout the pandemic.
In the event that they managed to save lots of throughout the pandemic, on common*, customers count on to spend 17.9% of these pandemic financial savings in 2022.
The rising value of products and companies was named as the largest (23%) deterrent to spending financial savings, adopted by greater taxes and family payments (17%), then uncertainty linked to the pandemic (13%).
The survey discovered an actual cut up in client confidence:
- A 3rd (29%) of customers really feel safer of their monetary circumstances for the yr forward than they did in 2021.
- Half (47%) stated they felt no roughly safe.
- While 1 / 4 (23%) stated they’re heading into 2022 feeling much less safe.
- 1% most popular to not say.
There was a notable generational distinction, with thrice as many youthful individuals than older customers stating they felt extra financially safe for 2022 than 2021.
Commenting on the findings, Linda Ellett, Head of Client Markets, Leisure and Retail at KPMG UK, stated, “This supposed spend is far wanted for a lot of elements of the financial system.
“However client confidence is such that even these prepared and in a position to spend, on common received’t spend greater than a sixth of their pandemic financial savings within the coming twelve months.
“Companies, going through mounting price pressures, will likely be hoping that the effectiveness of the booster programme results in a feel-good issue that will increase spending intention additional.”
A fifth of customers stated a vacation will likely be their most costly buy in 2022, adopted by property at 14% (whether or not buy or extension/renovation), while one in ten stated a family equipment.
Worth for cash, high quality, and comfort, had been the highest three buying issues for each 2021 and 2022.
A 3rd of customers stated they are going to take into account sustainability extra in 2022 than they did when buying items and companies in 2021. 60% stated they might give the identical consideration as in 2021, while solely 4% stated much less consideration.
Double the quantity of 18–24-year-olds cited sustainability as a buying consideration, in comparison with these aged 45-54 and 65 and over.
Linda Ellett added, “The rise of sustainability as a buying consideration, notably amongst youthful customers, is additional proof that client companies want to make sure that their ESG technique is strolling the stroll, not simply speaking the discuss.
“Not solely is that this important to the UK’s path to internet zero, however there’s clear business alternative for individuals who can persuade these customers that they’re worthy of what’s of their pockets.”