Retail Experience Economy Report 2022

    View Author June 2022

    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.

    Heightened Expectations

    • 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!”