UK consumers vow to cut eating out and non-essential shopping

BRITISH consumers plan to cut back on restaurant meals and non-essential shopping next year after a surge in the cost of living ate into disposable income.

The consulting firm KPMG said almost two-thirds of the 3,000 people it surveyed felt the need to reduce spending and save more because inflation hit the highest in four decades. It found people paying more for basics like food, mortgages and energy bills.

Eating out, takeaways and clothing were the things people said they’d cut first, pointing to weaker demand for retailers and hospitality firms in 2023. A third of people said they would buy fewer items and opt for more own-brand goods.

“Consumers are increasingly changing how they shop to save money — including switching to cheaper retailers, buying more value or promotional produce, and swapping eating out for meals in,” said Linda Ellett, UK head of consumer markets, retail and leisure at KPMG.

KPMG found almost half of those surveyed are drawing down on savings to help them meet essential costs. This figure rises to 80 per cent among low-income households.

One in 10 consumers surveyed had no savings, and people in London had the lowest savings average, at £4,725 (S$7,676). BLOOMBERG