UK shoppers have started to loosen their purse strings and are enjoying dining out and spending on breaks abroad again, according to new research from customer insights specialist Aimia.
The findings from Aimia’s Loyalty Lens found that only three in 10 (31%) people are now staying in with friends and family rather than eating out, compared to nearly half (48%) of people in 2014 and 39% in 2012.
It also found that fewer people are choosing to watch DVDs at home rather than going to the cinema, compared to last year (43% in 2015, down from 51% in 2014).
The findings follow reports from ONS that UK household finances are improving, with disposable income increasing by 1.9% last year.
It said that as many people start to feel better off, more people are choosing to socialise out of home and they are treating themselves to more holidays.
The number of people deciding to take fewer overseas holidays and city breaks to save money has nearly halved over three years. In 2012, 47% of people adopted this tactic, whereas today it is just 23%.
While more people have started to enjoy their disposable income, the data reveals how money saving strategies are here to stay. Four in five (79%) people say they are always on the lookout for a bargain, and this mindset is fast becoming part of the DNA of UK shopping habits.
Charlie Humphreys, managing director, business development EMEA at Aimia, said: “The improving picture for household finances is good news for UK retailers. But while post-recession shoppers may have more disposable income, they are also more difficult to please. They are expert bargain hunters and retailers will need to work harder than ever to win their custom.”
When asked how people use the loyalty points they collect, more people (43%) said they are using them to pay for daily essentials (rather than treats), up from 38% of people doing this a year ago; A third (34%) visit shops and then compare prices of competitors online (consistent with 32% in 2014); Nearly a third (30%) seek impartial advice from websites such as Which? and MoneySavingExpert to make sure they are getting the best deal (consistent with 28% in 2014).
Humphreys said: “Price will always remain an important factor, but retailers should be wary of employing short term tactics to get feet through the door. The overall customer experience is critical for winning repeat business.
“Those that focus on fostering long term relationships based on their customers’ preferences will be those who succeed. If a customer knows they will receive personalised offers on items they want and need, this is a far more powerful proposition than one-off, untailored deals”.
