Unveiling the Clash: Boosting Growth, Ensuring Sustainability, and Reviving Consumer Confidence - 5 Must-Know Stats for a Thriving Retail Industry

Two in five consumers favour economic growth over protecting the environment

42% of global consumers prioritize economic growth for their countries, even if it has negative impacts on the environment, according to a recent study by Forecast Factory. This marks an increase from the 33% who held this belief in 2020.

The research also reveals a growing number of consumers adopting a "climate fatalism" mindset. Approximately 30% now agree that it is too late to take any action to mitigate the effects of climate change.

According to the research, consumers are hesitant to make disruptive or expensive changes to their lifestyles. It indicates that by 2030, only 32% of global consumers will choose alternative transportation to flying for environmental reasons, and just 41% will undertake home improvements to adapt to climate change or extreme weather.

Additionally, the research examined global consumers' attitudes towards emerging technologies like AI. Specifically in the UK, a higher percentage of British consumers (39%) anticipate a negative impact on their lives compared to those who anticipate a positive effect (28%). In the US, opinions are more evenly divided, with 35% expecting a positive impact and 34% expecting a negative impact.

A major concern among hesitant consumers regarding AI is the diminished human interaction it entails. Approximately 25% of British consumers have expressed their worries about the impact of AI.

Consumer confidence is polarised

In the face of the ongoing cost of living crisis, there is a stark divide among consumers when it comes to their attitudes towards spending. A significant portion, comprising 35% of consumers, are actively seeking ways to reduce their discretionary expenses in the upcoming months. On the other hand, a slightly smaller percentage of consumers, 29% to be precise, hold an opposing viewpoint as they anticipate an increase in their spending during the same period.

Around 37% of individuals anticipate that their discretionary spending will remain consistent in the upcoming months. Approximately 29% of respondents, on the other hand, plan to increase their expenditures on dining out, entertainment, and clothing.

While older age groups are more likely to have higher levels of discretionary income, younger consumers hold a more positive outlook on the UK economy and their own finances. Among individuals aged 18 to 24, 43% feel optimistic about the UK economy, whereas less than a quarter (23%) of those aged 45 to 54, and a similar proportion (26%) of those aged 55 to 64 share this sentiment.

In terms of personal finances, 66% of 18- to 24-year-olds express optimism, in comparison to just 42% of individuals aged 55 to 64.

Source: Visualsoft

Brand strength more important than leadership quality for financial analysts

Financial analysts prioritize the strength of a company's brand over the quality of its leadership, according to research conducted by the IPA and Brand Finance.

When assessing publicly listed companies, analysts were asked to rate the importance of various factors. The majority of respondents (79%) considered the strength of the brand and marketing to be "very important." This factor surpassed the significance of leadership quality (76%), technological innovation (72%), and reported profit (71%) in influencing how companies are evaluated by the City.

Brand strength is considered important, but financial analysts also appreciate cutting marketing spend to save money. According to a survey, 52% of investors see reducing marketing spend as a positive measure to reduce costs, while 36% believe it may lead to negative consequences in the long run. Additionally, 37% of analysts consider advertising as an investment, while 24% see it as an operational expense. However, most analysts view it as a combination of both.

According to IPA and Brand Finance, analysts tend to view promotion as both a cost and an investment, with a majority (48%) perceiving it as a combination of the two. However, a larger portion of analysts (28%) see promotion primarily as an investment, rather than just an operating cost (23%).

IT policies are restraining marketers’ use of emerging technologies

Almost three in five (59%) marketing leaders agree that IT policies at their business are constraining the use of emerging technologies.

According to Gartner's data, it appears that marketers have limited control over the technology they use. A significant majority (78%) of respondents state that they are required to choose their technology solutions from a list of approved vendors and platforms.

The research suggests that IT departments are now playing a more prominent role in martech activities compared to the past. The percentage of marketers reporting that IT is leading, with marketing providing support, or solely responsible for each martech activity has increased.

Almost eight in 10 (78%) marketing leaders report centralising customer data management within IT teams.

Source: Gartner

UK retail sales slowed in September

Growth in UK retail sales slowed in September as warm weather meant consumers held off on autumnal purchases such as knitwear and coats.

According to the British Retail Consortium (BRC), retail sales in September grew by 2.7%, which aligns with the three-month average. However, it falls considerably below the 12-month average of 4.2%. Nonetheless, it outperformed the growth rate of September 2022, which was at 2.2%.

During the same period, food sales witnessed a notable increase of 7.4%, whereas non-food sales experienced a decline of 1.2%.

Sales growth in September decelerated due to the ongoing burden of high living expenses on households. Consumers were reluctant to spend on big ticket items like furniture and electricals, given the rising costs of housing, rentals, and fuel. Helen Dickinson, the CEO of BRC, emphasizes the significance of the upcoming 'golden quarter' for retailers. She asserts that retailers are making substantial investments to assist customers and lower prices.

Source: British Retail Consortium (BRC)