The leisure and hospitality sector, which suffered at the hands of the pandemic, should be prepared to be hit hard again. Results from a survey that looked at changing consumer behaviour amid the cost-of-living crisis revealed that the highest sacrifice areas by consumers looking to save money are eating out, leisure activities and holidays.
Flooring retailer Factory Direct Flooring (FDF) unveiled results from its survey of more than 1,000 female respondents from across the UK, which highlighted how homeowners will prioritise their spend as the spiralling cost of living squeezes the nation’s finances. These results come off the back of findings from the latest Lloyds Bank UK Sector Tracker which showed tourism and recreation suffering the sharpest fall in consumer demand of any UK business sector in August
The results illustrated that eating out is the most likely luxury to be sacrificed – cited by 53 per cent, with holidays and social activities following at 45 per cent and 43 per cent respectively. Just 12 per cent of those surveyed indicated they would cut back on home redecoration – proving home really is where the heart is, and an area only beaten in the priority stakes by groceries, which just 6 per cent of respondents said they would sacrifice in hard times.
Paul Hambidge, founder of FDF, said: “People clearly plan to continue spending the most time in their homes, and during this squeeze on pockets, restaurants and leisure activity providers are going to really feel that knock-on pinch. The results of this survey indicate that sector players certainly need to seriously consider some competitive tactics to draw patrons in, in these tough times. This crisis comes hot on the heels of the pandemic-induced set-back, but with consumers becoming far more savvy in all areas of spend it’s certainly not going to be an easy road ahead for the industry.”
The cost-of-living induced cut-backs are also impacting the shopping habits of those surveyed: 18 per cent are now likely to only buy reduced items, 75 per cent are comparing costs and looking for sale items more, and 65 per cent are comparing prices from up to three retailers before buying higher value items such as home interiors and furniture, and technology. Almost three quarters (72 per cent) of the all-female survey respondents also claimed that they were much better than their partners at saving money for these kinds of high-ticket items.
Hambidge concluded: “The results of this survey highlight that despite the cost of living putting a strain on many household budgets, homeowners are reluctant to sacrifice home decoration and improvement. Key ambitions for many homeowners – which have taken on a new meaning since the pandemic – are making the home comfortable, attractive and fit for their lifestyles. For many, their home is their retreat, and in uncertain or tough times, it really is a sanctuary that the leisure and hospitality industry may struggle to lure them from.”
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