Following today’s news (Thursday 12 May) that the UK economy contracted by 0.1% in March after a month of zero growth in February;

George Henry, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view on the current challenges for consumers:

“With no clear end to the cost-of-living crisis in sight, many people are going to find their budgets stretched further – particularly those already struggling with soaring energy bills. According to GlobalData’s 2022 Q1 consumer survey, high quality ingredients and low prices are the primary factors that UK consumers associate with good value, while long-lasting, ease of use, and time-saving factors were relatively less important.

“Interestingly, 60% of Gen Z find mass or middle markets clothing and footwear brands appealing, compared to only 49% of their millennial predecessors or 38% of the silent generation. Less financially stable youths are most likely to be value conscious, which may explain a preference for cheaper fast fashion brands – but it also means they’ll feel the hit from price hikes the most.

“Brands should target customers with high-quality products at low prices since this is most likely to resonate with demand for value for money. With almost two-thirds (63%) of the UK population typically shopping in supermarkets, retailers must place greater attention on private label alternatives. Discount chains like Lidl and Aldi have enjoyed great success by offering cheaper high-quality alternatives to established brands. Rising inflation and a gloomy economic outlook suggests value products will only continue to grow in demand.”