Younger shoppers cut fashion spend due to cost of living increases
The UK’s cost of living squeeze is making Millennials and younger demographics more sensitive to pricing and promotions, research from antuit.ai claims.
According to over 2,000 shoppers, Millennials were the most likely to suffer from concerns over rising prices with 65% of 25-34 year-olds saying they had become more responsive to pricing since the start of the pandemic, 4% higher than the average UK consumer.
Some 54% of the demographic have cut back on fashion spend and 52% have traded down from branded goods to own brand products. That compares to 21% of 55-64 year-olds and just 13% of those aged 64+.
They cited economic uncertainty, and concerns over jobs or finances, 12% higher than the typical UK shopper.
The result is that 68% of Millennials said they had become more responsive to promotions. A parallel study by XCCommerce showed that while 56% of all UK shoppers cited discounts are the most important factor when considering where to buy, this increased to 70% among 18-24 year-olds.
Yogesh, Kulkarni, co-CEO at antuit.ai, said: “Faced with rising sensitivity among consumers prompted by the cost-of-living squeeze, retailers are having to draw an even finer line when it comes to pricing and promotions – while they must drive demand on the one hand, ensuring consumers aren’t priced out of remaining loyal, they must closely manage margin protection on the other.
“By intelligently optimising pricing, markdowns and promotions, based on demand triggers, retailers can make the granular decisions needed at each store location to increase sell-through and protect margins, whilst meeting consumers expectations on prices and discounts.”
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