Over half of people in Midlands cut non-essential spending - report

New research has revealed how consumers across the Midlands are cutting spending and changing shopping habits in the face of an ongoing cost of living crisis.

KPMG’s Consumer Pulse survey tracks over 3,000 consumers across age and income groups and UK regions, with 490 in the East and West Midlands.

The results showed that:

• A total of 52 per cent in the East Midlands and 56 per cent in the West Midlands have had to reduce non-essential spending due to the cost of essential bills
• The main areas that have been cut back have been eating out, takeaways, clothing, travel/holidays and food and drink shopping
• Reducing spending has resulted in a rise in buying own brand/value products, promotion items, bargain shopping, smaller shops and visiting less expensive retailers
• Areas that have been less hit were technology and fitness

Nationwide, over half (56 per cent) of the 3,015 consumers polled in September by One Poll for KPMG said that they have had to reduce their non-essential spending since 2023 began.  Only four per cent said they have been able to increase non-essential spending this year.

Eating Out (70 per cent), Takeaways (60 per cent) and Clothing (60 per cent) are the top three things that people reducing their non-essential spend have cut back on so far in 2023.

Consumers are also continuing to change their buying behaviour to make further savings, with even more having to squeeze out value since this time last year:

• 41 per cent say they are buying more own brand / value products (30 per cent September 2022).
• 39 per cent say they are buying more promotional or discount items (32 per cent September 2022).     
• 36 per cent say they are spending more time looking for bargains (27 per cent September 2022).           

A third of consumers (29 per cent) said that they have switched to shopping at less expensive retailers, while one in five said they are buying more pre-owned items this year. 

Responding to the findings, Linda Ellett, UK head of consumer markets, retail and leisure for KPMG, said: “As 2023 has progressed we have seen the number of shoppers having to make cost savings increasing. 

“Around 40 per cent of the consumers we survey say they are buying lower cost or promotional goods, with a third having switched to lower cost retailers.  One in five say they are buying more pre-owned goods this year, which more positively could also reflect environmental drivers.

“We are also seeing consistent numbers of consumers cutting back on certain non-essential activities in order to save money – with eating out and takeaways continuing to be the most common target for cost cutting.”