The cost of living crisis has hit businesses in the United Kingdom where it hurts most. The morale of UK consumers is low and they are spending less. Read on to find out more.
Customers and consumers are the lifelines of any business. The more, the merrier is a nice phrase to remember by any business owner who is lucky enough to have many customers. But what happens if the business owner is from the United Kingdom and he can see a reduction in customers and sales happening right in front of his eyes?
If you don’t this already, this is what is happening in many business sectors and most UK businesses. they are reeling under the cost of living crisis. Consumers are low on morale and they have cut back on spending. Many Britons have even made cuts on food spending so that money can be saved for the proverbial rainy days. As inflation increases, UK consumers have become less confident about making any unwanted unnecessary purchases.
Cost of living crisis hits spending in supermarkets
UK consumers are keeping their money purses closer to themselves now. If you are a UK consumer, then you too are not opening your wallet or taking out your credit cards as much as business owners want you to do it. The cost of living crisis and the soaring prices is filling many UK consumers with dread and desperation. Many Britons have even cut back on their food shopping.
The picture of the nation’s consumers is grim. The total volume of goods sold in stores and online has fallen. More than 9-in-10 adults say that the cost of living has increased, especially the cost of food.
High prices in the markets are weighing heavily on UK consumers who are now forced to think twice before coming to any ‘buy’ decision. Stores are also feeling the damp consumer confidence. Retailers are looking for hope and asking for a better future with prayers in their hearts.
Consumer finances getting squeezed
If Britons were pessimistic during the COVID pandemic, then this time in July 2022 they are experiencing the highest form of pessimism in at least half a century. Wages have gone down and prices have gone up. Money and finances are being squeezed dry creating a gloomy outlook.
If we talk about the UK government, the interest payments on government debt have hit one of their highest ever levels in May 2022. Rapidly rising prices of food and other essentials are squeezing what consumers can buy.
Chancellor Rishi Sunak said: “Rising inflation and increasing debt interest costs pose a challenge for the public finances, as they do for family budgets.”
You would also have observed that many people you know are ignoring premium brands now when they go shopping. They are looking for cheaper alternatives so that the household budget can be stretched further.
The cost of living crisis is not something that can be ignored. It has serious implications that the UK government needs to find a concrete solution for so that the mood of the UK consumer begins to lift.
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