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New data from Braze confirms that people will primarily cut down on retail spending to help tackle the cost of living squeeze, with almost 90% of young people ages 25-34 say they will be cutting non-essential spending with the aim to lessen the blow on their savings.
It comes after the ONS reported a record spike in the price of clothing, with clothing inflation now hitting 8.8% – the highest rate since records began in 1989.
The data from Braze also shows that 82% plan to reduce spending for the rest of 2022 on non-essential items:
-Almost half (47%) will be cutting costs on clothing
-Three in five (61%) will be reducing their spending on takeaway
James Manderson, SVP, customer success at Braze, said: “This new research shows the impact of the cost of living rise on non-essential spending. This is a time for brands to re-evaluate their offering to consumers and to provide customer engagement in a sensitive, and personalised way that will build stronger brand loyalty in the long run and boost customer retention.
“By building a personal connection with customers and using first-party data to design meaningful and empathetic experiences, brands can ensure they are best placed to support consumers during this tough economic period. This applies equally from market leaders to small businesses, ensuring they are delivering the right message at the best time.”
