By Mark Davidson
Some 61 per cent of consumers think they will be worse off in 2011 forcing many to seriously think about their spending, according to new research.
The data, supplied by food and grocery group IGD, shows that people are less confident than last year, while just one per cent of respondents believe they will be ‘a lot better off’ in 2011 than they were in the previous 12 months.
Despite BDO figures showing retail has had a healthy start to 2011, thanks to promotions and a busy bank holiday, IGD said the outlook for the rest of the year looks bleak for retail and other sectors like hospitality and entertainment.
Those surveyed said that although they plan on spending less eating and drinking out, many are not so keen to cut down on grocery shopping with only 32 per cent citing this as the area where they will reduce expenditure.
Fashion retailers should expect to take a hit with 58 per cent of consumers saying they will economise on clothes shopping over the next 12 months.
Joanne Denney-Finch, CEO of IGD, said: “Shoppers are clearly feeling a lot more downbeat than they were last year and plan to do some major belt tightening.
“Shoppers of all ages and across all socio-economic groups are telling us they intend to cut back on non-essentials.”
Young people think they will be least affected by economic pressures this year, according to the study, with only less than half of 18 to 34-year-olds expecting to be worse off this year than last.