The forthcoming August bank holiday marks the final extended weekend before the Christmas season for 2023 in the UK, with consumers benefiting from an additional bank holiday to celebrate the King’s Coronation earlier in the year.
As bank holiday spending for 2023 has so far been dampened by high inflation, retailers must capitalise on the falling inflation levels to entice retail spend by increasing marketing in the lead-up to the following bank holiday on 28 August. Promotions on items such as food and drink for picnics and BBQs will be critical to encourage consumers to make the most of the summer weather, says GlobalData, a leading data and analytics company.
Tash Van Boxel, Retail Analyst at GlobalData, said that with many enjoying time off work on bank holiday weekends, consumers use their time off to catch up with family and friends.
“As a result, leisure expenditure is supported during bank holidays, as consumers are more willing to spend on socialising,” said Van Boxel.
Van Boxel continued that 50.2 percent of consumers agreed that bank holidays encourage them to increase spending on socialising, according to GlobalData’s UK consumer survey for July.
In comparison, only 29 percent of consumers stated that bank holidays encourage them to spend more on retail.
“Retail spend is often de-prioritised when disposable income is tight, as consumers aim to maximise time spent with loved ones instead of indulging themselves.”
Indeed, the bank holiday spent in the first half of the year was impacted by persistently high inflation, with 60.6 percent of consumers agreeing that they were forced to cut back on bank holidays this year because of the cost-of-living crisis.
Van Boxel concluded that retailers must invest further in marketing promotional events and provide competitive discounts to encourage volume and sales growth on bank holidays, with 70.1 percent of consumers agreeing that shops should do more promotions around bank holidays.
