While the cost-of-living crisis has built up over recent months and will intensify over the winter, almost two-thirds of consumers (64 per cent) are more aware and cautious about spending money, while 63 per cent said they would be more focused on getting value for money in the future.

Perceptions of lifestyle and employment challenges are at the lower end of the scale in terms of consumer concern, while rising costs are top of mind for many, BRC said.

As the Bank of England has made an official forecast for a recession in the United Kingdom, consumers are becoming more used to disruptive events, and to some extent, more desensitised to them, BRC noted.

Consequently, consumers are adapting more readily to these external factors and thus more resilient to change.

The biggest concern for consumers right now is their ability to cope with rising and interlinked energy, fuel and food costs.

In discretionary purchases, however, fewer consumers have observed price rises, and consumer reaction has been more decisive. For instance, in clothing, shoes and accessories, two-thirds of consumers have observed price rises but nearly half (49 per cent) are buying less and 7 per cent have stopped purchasing altogether.

Consumers have polarised at two extremes. At one end are cash-strapped consumers who are watching every penny. At the other are those who are willing to spend—in certain circumstances—and want retailers and brands to excite and entice them to do so.

Only 11 per cent of high-income consumers adopt an affordability first mindset. By contrast 42 per cent low-income consumers are driven by affordability first.

Consumers in the middle are shifting towards these two extremes. Pessimism is rife for low-income consumers, with nearly half (46 per cent) saying that they feel worse compared with February.

Forty-four per cent expect their financial situation to be worse in 12 months and a quarter (26 per cent) feel that their mental well-being will decline in the next six months. Only 39 per cent feel in control of their lives; half of the 79 per cent of high-income consumers feel the same.

The number of middle-income consumers who expect their mental wellbeing to worsen (13 per cent) is about three times higher than the number of high-income consumers (5 per cent). A third expect their financial situation to be worse in 12 months, more than twice high-income consumers.

Sustainability remains a priority for all consumers. This trend is most noticeable among middle and high-income groups where 28 per cent and 23 per cent respectively are adopting a ‘planet first approach’.

Sustainability priorities are manifesting in a shift towards conscious consumption behaviours rather than spending on sustainable products. Consumers are focused on making and mending, with 70 per cent of all consumers prefer to repair things rather than replace them.

At the same time, three-quarters say they are less interested in the latest fashion trends. Almost two-thirds (64 per cent) do not feel the need to keep up with the latest technology trends. Thirty-seven per cent of consumers say they are buying more second-hand products, BRC added.

Fibre2Fashion News Desk (DS)