A new poll reveals that consumer confidence and spending intentions remain low due to the coronavirus crisis, which could put pay to any hopes of a quick recovery by retail.
The survey found 24% of UK adults expected to spend less than usual over the next month compared with 11% who say they will spend more, according to the latest consumer coronavirus tracker survey by the BRC and Opinium.
In terms of retail categories, 37% of respondents said they would likely spend less this month on fashion and clothing. Respondents said spending on both small (28%) and large (27%) electronics as well as health and beauty products (27%) would take a hit.
However, the survey found the majority of customers were willing to spend money in-store on groceries – 62%, up from 56% the previous week.
The average for non-grocery categories rose to 42%, up from 38% last week. The BRC said it is likely the introduction of masks helped improve these figures.
The number of customers willing to visit stores to browse also rose slightly to 14%, up two percentage points from last week, while respondents who said they would avoid visiting shops fell to 23%, down from 32% at the start of July.
BRC chief executive Helen Dickinson said: “Spending intentions remain down among UK consumers, suggesting retailers will continue to face hard times in the months ahead. This was particularly true for clothing and fashion, which has been particularly hard hit by the pandemic.
“Nonetheless, the public continue to be reassured by the many safety measures that have been put in place by retailers, such as perspex screens, increased hand sanitiser and regular cleaning. Four-times as many people believe retailers are doing enough to protect the public, as disagree, and this has been reflected in the rise in footfall.”
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