More people are preferring home parties as living expenses rise
According to a recent report published in March, the sales of home furniture and accessories increased due to consumer demands. Consumers are considering staying at home and spending less money on outside food and entertainment.
According to the “British Retail Consortium (BRC)” report, compared with a year earlier, this contributed to the total retail sales increasing by 5.1% last month. It occurs as the pressure on households from the high cost of living continues. The inflation rate increased by 10.4%. Inflation is the rate at which prices are increased.
The BRC claims that “Mother’s Day Sales” in March brighten up people’s purchases of flowers, perfumes, and jewellery.
However, the “wettest March” in more than 40 years slowed down demand for clothing as well as for gardening and do-it-yourself goods.
The BRC and “accounting company KPMG” report that sales of furniture and home furnishings increased throughout the month, posting the greatest gain of any category.
According to KPMG’s UK head of retail, Paul Martin, people are now preferring to host gatherings at home in order to save money and time. As council tax, mobile, and electricity costs increased and personal tax allowances were frozen, he continued, the pattern was expected to continue in the future.
In separate research released by Barclays, customers were seen cutting back on eating out in March while reviving their expenditure on streaming services due to more time spent at home.
A retail research company, IGD, predicted that as food costs increased, supermarkets would seek alternative methods of customer satisfaction.
The BRC reported that consumer confidence was “edging up” and that significant events like the King’s coronation in May were probably going to help merchants.
Helen Dickinson, the CEO of BRC, cautioned that businesses continue to confront extensive cost challenges, such as growing labour and wholesale expenses.
According to the Bank of England, inflation will decline later this year as food and energy prices decline. Following a surprising increase in the UK inflation rate in February, Bank governor Andrew Bailey has cautioned firms against raising prices too significantly.
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