UK | With the growing popularity of budgeting challenges on social media, Brits have become increasingly conscious of how much they spend.
The term ‘No Spend’ has amassed 36.9 million posts on TikTok alone, and as trends come and go, it has become essential for retailers to stay abreast and keep up with consumers.
Barclays Consumer Spend data for the early months of 2024 revealed a cutback on new clothes and accessories, coffees, takeaways, and dining out, with some unsubscribing from marketing emails to avoid temptation.
The cold and wet winter, which included storms Isha and Jocelyn, was harsh for retail. In Q1 2024, spending on clothing and household items was down 0.9 percent and 5.3 percent, respectively. At the same time, several areas of non-essential spending continued to see robust growth.
Spending on digital content and subscriptions grew 10.8 percent compared to Q1 2023, as people swapped the high street for their sofas to watch popular new TV releases and cultural events like the BAFTAs, Oscars, and Super Bowl.
The buzz surrounding high-profile events, including the Paris Olympic and Paralympic Games and the Euros, prompted people to start holiday planning. According to Barclays' credit and debit card data, consumer spending on travel was up 9.1 percent year-on-year.
Many clients have found success by adapting their marketing strategies to complement these trends by promoting clothing lines and accessories targeted at those on holiday or those hunting for new outfits to wear to Taylor Swift’s ‘Eras’ tour. Others test new store concepts to draw consumers back to the high street.
Barclays industry teams reported increased interest in the ‘pre-loved’ space, which will likely continue into H2. Some household names expanded their existing platforms to launch second-hand marketplaces for clothes and accessories.
Much of this has been driven by Gen Z shoppers, who have different expectations of brands than previous generations. To engage Gen Z, it has become essential for retailers to keep up with evolving trends and ensure seamless digital shopping experiences.
Most Gen Z consumers expect to be able to do their shopping on their phones, with an increasing number of brands going beyond partnering with influencers and now integrating their entire marketplaces on social media platforms.
Although retailers have expected a slow return to growth, as inflation falls back and real-term earnings improve, consumer confidence is expected to grow over the coming months.
While consumers are still spending, they are less impulsive and more thoughtful, prioritising experiences over material products. Ultimately, there are plenty of opportunities to engage consumers.
