Retail in peril as half cut back on buying clothes

LAURA MCGUIRE

RETAIL and hospitality industries continue to be bruised by the UK’s cost of living crisis as 59 per cent of people have cut their spending on eating out and a further 51 per cent have cut spending on clothing, according to new data.

Figures from Oxera also showed that in the last 12 months insolvencies of retailers in the UK rose 56 per cent from 1,243 to 1,942. Restaurant insolvencies have also jumped 45 per cent over the last year, from 1,324 to 1,916.

in the dispute have not had a pay rise for four years and general secretary Mick Whelan said the government had not met its members since April.

The union said services will be seriously disrupted as none of the train companies employs enough drivers. A Department for Transport spokesman said the government had “facilitated improved offers on pay and reform” and it was now up to unions.

The cost of living crisis was always going to result in spending cuts “but it’s shocking to see just how hard the retail and hospitality trades have been hit,” Robert Catherall, principal at Oxera, said. Rising interest rates, higher costs and a stagnant economy have led to many businesses crumbling. While inflation fell to 7.9 per cent in June, this dip has not yet been passed down to customers who have to limit the amount of money they spend on disposable goods. Oxera reported that some 81 per cent of Brits now perceive eating out to be a luxury compared to 71 per cent 18 months ago.

aged over 55, a new study by American Express has shown.

Coined ‘purposeful shopping’, Gen Z and millennial shoppers are also the most likely group to donate points or cashback earned from loyalty programmes to charitable causes.

Just 29 per cent of Gen Z and millennial shoppers claim a poor instore experience would make them less loyal compared to 63 per cent for older generations. Kate Nightingale, chief behavioural officer at brand strategist Humanising Brands, said: “Consumers are seeking reassurance from retailers, and want services that make their lives easier, while also feeling valued by the brands they choose to support. It’s clear that alongside price, both purpose and authenticity are important factors that build trust and support loyalty.”

Despite the squeeze on living standards, younger generations still value brand ‘ethics’