The UK slipped into a technical recession in the final quarter of 2023 according to new data from the Office of National Statistics (ONS). The fall in economic output was steeper than most economists expected, with the economy barely growing over the course of last year.
Despite the slowing economy, consumer confidence is up on mid-2023 levels. Rising real wages is one factor behind this resilience. But another is that consumers have honed their survival skills after half a decade of constant upheaval. The fall in GDP is a side-issue compared to the impact of Covid-19 and the cost of living crisis. And similar to the income squeeze that followed the financial crisis, savvy shopping doesn’t mean that people are cutting back across the board. From food to beauty to travel, many are still prepared to trade up for the right product.
Read the full article on the Mintel website
NAM Implications:
- Savvy shoppers want demonstrable value for money…
- …and are prepared to shop around, within limits, for it.
- Brands and retailers just need to make it obvious and convenient.
