The Retailer Summer Edition_2020

Five emerging UK consumers • GET TO NORMAl (47%) • Cautiously extravagant (22%)

• Stay frugal (19%) • Keep cutting (4%) • Back with a bang (8%)

Source: EY Future Consumer Index (UK insights), June 2020. Percentages are rounded to nearest whole number.

One in four UK consumers (19%) will ‘stay frugal’, are price- focused and unlikely to increase discretionary spending in the near term. They are likely to have also saved and stockpiled during lockdown. However, some 4% of UK consumers will ‘keep cutting’, despite already making deep cuts during lockdown. These are those consumers most impacted by the economic implications of COVID-19. The smallest, but perhaps most exciting segment, is the ‘back with a bang’ group. Only accounting for 8% of UK consumers, they are largely younger, but the most willing to spend, both during and after lockdown restrictions have lifted. It is their pent-up demand and how they behave which could perhaps help to reassure other consumers that it is safe to spend again. Whatever the coming weeks and months bring, one thing is for certain. Building trusted relationships between retailers and consumers, as well as retailers and their staff, is going to be critical to reducing anxiety levels. For the latest global

EY Future Consumer Index methodology

The EY Future Consumer Index is based on regular global surveys conducted exclusively for EY. The surveys (currently covering 18 countries) are designed to provide a 360-degree perspective on the changing consumer and cover behaviours, sentiment and intent. This article references 1,012 UK survey respondents during the week of 8 June 2020.

EY Future Consumer Index insights, visit: ey.com/futureconsumerindex

SILVIA RINDONE // Contact // Linkedin // ey.com

Disclaimer: This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Member firms of the global EY organisation cannot accept responsibility for loss to any person relying on this article.

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