During lockdown, despite the loss of employment income for many, consumers have been accumulating savings rather than spending. The Bank of England estimates £125 billion has been racked up – an average of £4,000 per household. Will consumers use these ‘pent-up’ savings to splash out once the economy reopens?
This would be a lifeline for businesses in the many sectors to have experienced a grim time during the pandemic. The consumers on whose spending they rely, restricted in their movements and their outlook, have been pushed into hibernation.
But as the vaccination programme continues, hopes of a boom in spending will rise. Retailers and hospitality providers will be wishing for a spending splurge as consumers release themselves from their shackles.
TGI data in AMSR shows the potential that could be unleashed. 67% of us agreed in 2017 that “Sometimes I treat myself to something I don’t need” – a level of temptation that has been increasing steadily. Product and service providers will be crossing their fingers that these latent desires burst into lavish expenditure in 2021.
Women, younger adults and ABC1s are most strongly minded to treat themselves, and businesses targeting these groups might benefit especially. But agreement levels are above 60% in all groups, so the demand for attractive and well-positioned offers should exist across the board.
Sources:
TGI (Target Group Index) is a continuous survey which has been carried out in Great Britain since 1969, based on 25,000 adults per annum, who provide information on their use of all major products, brands and services. Attitudinal, demographic and media exposure data are also included. Kantar, who own and operate the TGI, have made major donations of data to AMSR. To explore the TGI archive within AMSR, click here: Target Group Index – The AMSR Online Archive (oclc.org).
Contributed by Geoff Wicken
Date posted: 18th February 2021