Almost three quarters of consumers intend to cut back on retail spending over 2023, according to new research.

A study by VoucherCodes.co.uk found that almost all retail categories are anticipated to fall in spend over the year.

Around half of consumers reported plans to cut back on clothes purchases, with the discount code company projecting that fashion is expected to be the hardest hit spending category, with a revenue decline of over six per cent – falling to around £37 billion from around £44 billion in 2022.

Closely following reduced spending on fashion, 41 per cent plan to spend less on home and garden products, and 36 per cent plan to spend less on sportswear. This would mean the categories see a decline in sales of 2.9 per cent and 4.4 per cent respectively.

While the research found the majority of spending categories will fall in sales, grocery spend is predicted to rise from around £170 billion to around £176 billion.

“The remainder of 2023 is going to be tough for both retailers and consumers alike,” said Maureen McDonagh, managing director and senior vice president international at VoucherCodes.co.uk.

McDonaugh continued: “As more of consumers’ money goes on essential payments such as bills, rent, mortgage payments, and food, almost half of consumers believe they’ll have less disposable income to spend on treats this year, so retailers will need to work extra hard to encourage people to part with their hard-earned cash.”

The report follows recent research from the British Retail Consortium, which found that retail sales had remained relatively stagnant throughout January.

Share Story: