We are delighted to launch our 2022 Retail Experience Economy Report in partnership with independent research consultancy, Retail Economics.
The report findings are based on a survey of 2,000 UK households and evaluate how consumer spending habits have changed since pre-pandemic and as result of macro-environmental factors, such as the rising cost of living and the prevalence of sustainability, to name just a few.
The report identifies three key areas of focus: a consumer desire for escapism despite a cutback in spending; the significance of omnichannel business models in meeting consumer needs; and the role of environmental, social and governance (ESG) in gaining a competitive advantage. Moreover, the need for retailers to deliver value is critical for future success.
At a Glance
The Retail Experience Economy recognises four key factors determining a customer’s shopping experience: (1) Environment; (2) Education; (3) Escapism; and (4) Entertainment.
Cost of Living Cut Back
- The average UK household will have £650 less to put towards discretionary purchases in 2022 due to the cost-of-living crisis.
- Over two-thirds of consumers plan to spend less on non-essentials in 2022. Significantly, over a quarter say they plan to stop buying non-essentials altogether.
- Almost one in three shoppers are consciously looking to switch to cheaper brands or retailers.
- Over a third of consumers say that the pandemic has changed their expectations when shopping, with greater value now attached to experiences over material possessions.
- Despite squeezed budgets, nearly a quarter of consumers would happily pay more for a better or memorable shopping experience.
- A third of consumers are looking for some form of Escapism from their retail experience in 2022, compared to just one in five before the pandemic.
Environmental, Social and Governance (ESG)
- Three quarters of consumers would not switch to a cheaper brand if their company values were not aligned to their own.
- Over 60% of consumers believe their experience of shopping with a retailer is enhanced if they were able to clearly demonstrate strong ethical and environmental credentials.
- One in four consumers plan to buy second-hand or shop on resale sites in response to the rising cost of living.
Matthew Lewis, Head of Retail, says, “Our report is intended to provide retailers with a comprehensive view of market trends, in order to proactively tackle the challenges and harness the opportunities that lay ahead. We hope this will be a valuable resource for retailers as we all plan our way to a brighter future!”