Data: Shopper sentiment to hold steady in 2018

According to data compiled exclusively for Retail Week by Walnut (formerly ICM), 64% of shoppers plan to spend the same amount money in 2018 as they did in 2017 on non-essential purchases like clothing, electricals and toys. 

It will be a relief to some retailers – particularly following underwhelming Christmas trading and reports of volatile consumer confidence – to hear that nearly two-thirds of shoppers are not expecting to tighten the purse strings further this year. 

However, the poll revealed that a quarter of respondents expect to spend less this year than they did last, suggesting that a some consumers are feeling the pinch.

Meanwhile, a flush 11% plan to spend more. 

January spending

Looking specifically at spending in January, more than half – 56% – of consumers polled said they have not, and do not plan to, buy any discretionary items at all this month, suggestive of a crackdown on spending after the expensive festive period.

Of the 2027 shoppers polled, 42% said they had already bought non-essential items by the mid-point of January.

A little more than half of those snapped up bargains in the January Sales.

While this may initially seem low, the propagation of Black Friday in the UK in recent years has brought forward a large portion of consumer spending and taken the shine off the Sale events that typically launch on Boxing Day.

What are they buying?

Of those splashing the cash this month, 57% are opting to spend on clothing, shoes and accessories.

A third of shoppers are buying, or plan to buy, beauty products this month and more than a quarter of respondents are spending on homewares.

Despite dynamic promotional activity across furniture retailers, only 9% have spent or plan to spend money on furniture this month.

Is the debt pile mounting?

Given widespread concern about rising levels of consumer debt, it is perhaps surprising that 55% of respondents said they don’t expect to buy any non-essential items on credit in 2018.

Just 5% expect to spend more on credit this year than last and 12% estimate they will spend less on credit.

However, the pollster cautions that these numbers should be “treated with caution”.

Walnut senior research executive Madeline Stancer said: “The number of people who don’t expect to buy any non-essential items on credit this year seems quite high and we’d suggest this should be treated with caution.

“We would highlight that this is people’s perception and expectation at this point in the year, and that circumstances could easily arise where they need to use credit.”