UK retailers could be in line for a summer spending boost as consumers prioritise holidays and pre-trip purchases despite pressure on household budgets.
New research from KPMG UK found that 63 per cent of consumers have either booked or plan to book a summer holiday this year, with 45 per cent having already secured a trip and a further 18 per cent planning to book at short notice.
Among those who have already booked a holiday, three-quarters said they planned to buy new items before travelling.
Toiletries and clothing were the joint most popular categories, with 42 per cent of holidaymakers planning to buy each, followed by footwear at 25 per cent, children’s clothing, accessories and beauty products at 17 per cent, and luggage at 13 per cent.
KPMG said the figures pointed to a potential uplift for fashion, beauty and health retailers over the coming months, as holidaymakers continue to prioritise travel and days out over other big-ticket purchases.
KPMG UK head of consumer, retail and leisure Linda Ellett said: “Summer holiday demand is looking healthy, particularly given household essential cost levels, nervousness about the economy, and consequences of the Iran conflict.
“Spending on holidays, and UK days out, continues to be prioritised from available budget, far more so than other big-ticket items. And there are welcome signs that holidaymakers plan to spend on new purchases to pack in their suitcases, which retailers will be competing hard for this summer.”
The survey of 3,000 UK consumers, carried out between June 3 and 10, also found that 38 per cent of those who had already booked a break were travelling abroad, 38 per cent were holidaying in the UK, and 24 per cent were doing both.
However, the findings also show that consumer confidence remains fragile. Some 60 per cent of shoppers said they believed the UK economy was worsening, with grocery costs and utility bills remaining the biggest concerns.
KPMG said 55 per cent of consumers felt secure in their personal finances, up slightly from 54 per cent in the first quarter, while 23 per cent felt insecure, down from 25 per cent.
The research also found that 43 per cent of consumers had no plans to spend on big-ticket items over the next three months, underlining the continued pressure on discretionary categories outside holidays, days out and hospitality.
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