UK retailers respond to decline in consumer spending by offering extra discounts

Acute concerns about the cost-of-living shock are likely to bring a Christmas shopping season like no other, with consumers taking control into their own hands by front-loading their spending.

This Christmas, people will be looking for smaller luxuries and gifts that still deliver feel-good quality. One way retailers can capture demand and help customers do more with less is through personalisation. Customers will value creative and inexpensive ways to help pack a punch with presents so retailers who can pivot to more personalised offers should definitely emphasise it.

Another huge hurdle for retailers will be the mismatch between what retailers have in stock versus what consumers want. And the stuff that retailers are betting that consumers want in 2022 may still be lying idle on ships or containers. Retailers must have the technology and plans in place to help them adapt to supply chain delays and maximise the value of the inventory they have.