Consumer spending patterns change

Recent research has shown a shift in consumer spending over the past 12 months.R3, the trade body for insolvency professionals, noted in a new survey that over half of shoppers (51%) are now buying less non essential goods, such

as clothes, whilst 47% said that they now shop around more before making a final purchase decision. Notably, a third also admitted they now also buy clothing from supermarkets.

With pay awards being frozen in many industries, unemployment high and the price of goods and services rising steadily since the end of the recession, many people are finding it hard to balance their budgets.

Frances Coulson, R3 President, said: “People are uncertain about what the future holds financially and the most natural response is to be cautious. We are seeing households tightening their domestic belts and looking for ways to reduce monthly outgoings.’

The research concluded that it was women more actively looking to tighten spending; 42% of women switching to value brands and 40% of them have started to use gift cards and vouchers over only a small percentage of men.