Almost half of consumers feel less financially secure, KPMG finds
The latest Consumer Pulse survey shows that two-thirds of people say they will have to cut their non-essential spending in 2024
Four in 10 consumers are heading into 2024 saying they feel less financially secure than when 2023 began, according to new research from KPMG UK.
Assessing confidence for 2024, KPMG’s latest Consumer Pulse survey of 3000 UK consumers shows those feeling worse about their financial security outnumber those feeling more secure by almost two to one (41% vs 22%).
The findings also showed that two-thirds of consumers say they will have to cut their non-essential spending in 2024, with eating out (78%), takeaways (70%) and clothing (57%) the top three of a wide range of cost cutting targets.
This is the same top three as when KPMG polled consumers on their 2023 spending intention 12 months ago. But the numbers of consumers saying they will target these categories for cutbacks in 2024 has risen sharply compared to a year ago, when eating out was selected by 46%, takeaways by 42%, and clothing by 42%.
Compared to a year ago, the 2024 survey also shows clear jumps in the number of people saying that they will buy more of their own brand and value produce next year (46% vs 31%), and more promotional and discount produce (46% vs 30%).
Intention to shop at lower cost stores more in the year ahead has also risen (40% vs 27%), as has using retailer loyalty schemes more to unlock lower prices – with 40% of consumers saying they will do more of this in 2024, compared to 18% saying so twelve months ago.
Commenting on the findings, Linda Ellett, UK head of consumer, retail and leisure for KPMG, said: “As was the case in 2023, large numbers of consumers tell us that they are going to combine stopping, reducing, and switching the things they buy to save money in 2024.
Our survey also indicates that those consumers who have already adapted their shopping behaviour to lower their costs during 2023 are going to continue these steps during the next twelve months.
“Around half of consumers we survey say they will buy more value, own brand, promotional, or discount produce. Forty percent of consumers also intend to use retailer loyalty schemes more in 2024.”
Ellett concluded: “Price is way out ahead as the main purchasing driver and retailers are going to be expected to continue to incentivise to compete. With margins under prolonged pressure and interest rates remaining elevated, this consumer and economic landscape will continue to challenge the structure of some businesses.”