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Published
Jan 13, 2022
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UK households to cut spending with clothing hardest hit - KPMG

Published
Jan 13, 2022

Bad news for fashion retail. While 32% of consumers in the UK plan to cut back on their general household spending this year, 50% are expecting to reduce buying clothes in 2022, new data from KPMG reveals. Even worse, that rises to 59% among women.


Image: Pexels


As the rise in the  cost of living begins to bite, only 9% of people surveyed said their spending was likely to increase this year. At least half of the 3,000 adult consumers surveyed expect their spending to stay roughly the same as last year.

Other areas where consumers plan to cut their outlay this year include eating out (55%) followed by 49% who said they would cut down on takeaway orders.

The survey also showed that one in four respondents said they had not managed to save during the pandemic. Of the 74% who had saved, the rising price of goods and services was named as the biggest deterrent to spending savings, followed by higher taxes and household bills and uncertainty linked to the pandemic.

Linda Ellett, head of consumer markets, leisure and retail at KPMG UK, said: “The cost-of-living squeeze is under way for many households and it’s not a surprise to see a third planning on reducing spending, and less than one in ten planning to increase their spending. 

“Faced with inflationary pressures, some businesses are mulling upping their prices, or have done so. But they will be mindful that they are operating in a marketplace where consumers are themselves having to tighten the purse strings. 

She added:“The competition for share of wallet in 2022 is heating up. It’s vital that businesses double-down on their productivity, on the value and efficiency of their supply chain, and assess whether new products or offers can give them an edge in this landscape.”

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