The Retailer Spring Edition 2023

SPRING 2023

41

For every £100 different consumer groups are spending on:

Setting Forth

Settled and Saving

� Retail

£23

£26

� Supermarket

� Financial services

Younger people in higher education, entry-level jobs or junior roles Have limited savings and little to no salary Be budget-con scious and rely on discount super markets for their grocery spend

Be in their 40s and have a family Own a home and live in rural areas or areas with a low share of rented properties Have a medium spend and save for retirement or to support their offspring

£17

£15

� Household bills

£8

£15

� Motor

£7

� Restaurant

£11

£12

� Travel

£11

£14

£7

� Communications

£7 £5 £6

£6 £5 £5

� Hobbies & interests

Make data your friend Consumers’ spending priorities have undergone major changes in the past year as prices have risen. For a time, pent-up savings from Covid 19 – and excitement as families got together for the first Christmas since the pandemic – limited the impact of higher energy and other bills on spending. Now, however, consumers are making more deliberate choices about how they spend their money. While some headline figures may make worrying reading for retailers, there are multiple emerging opportunities. Success in the coming months could depend on understanding these prospects and finding ways to access them. To do this, retailers must see data as their friend and use it to inform their strategic objectives on issues such as price points, product focus, expansion plans and localised offers. But they must also think laterally and use data to drive creativity.

For instance, the ongoing resilience of spending on travel does not just benefit airlines and travel agencies; clothing retailers (which suffered an 11% drop in sales in the year to February 2023) clearly have an opportunity to capture additional sales through travel wear and events. Similarly, data can be used to uncover consumer affinity between brands in different sectors that can drive brand partnerships and unlock spending. While the UK retail environment is changing and as new spending habits emerge from the rise of conscious consumers, one thing that remains constant is that accessing and understanding retail data will be a key differential for successful business.

Aled Patchett MarketIntelligence@lloydsbanking.com

business conversation.” ‘‘

Data is emerging more and more in daily