Consumer confidence has understandably taken a notable knock

Linda Ellett, Head of Consumer Markets, Leisure and Retail at KPMG UK said:

“Consumer confidence has understandably taken a notable knock this month given the wide-ranging issues facing the country – from rises in energy costs, inflation, and a national insurance increase, to a shortage of consumer goods driven by a variety of factors including a lack of CO2. It’s impossible for consumers to ignore the challenges all around us.

“Now is also the time that many retailers are ramping up for the festive season. It remains to be seen quite how many challenges they face and how this will be received by consumers, who are preparing to spend big after last year’s cancellations, but who may be left frustrated by a lack of choice and availability.

“The grocery industry has been preparing some time for the months ahead, and retailers are having to make bold and often difficult decisions to ensure that the best possible products and shopping experiences will still be available at Christmas – even if that means cutting product lines temporarily for now. We will need to wait and see whether confidence takes a further knock due to this lack of choice. After last year’s muted festivities, families may decide to go all-out with the quality of their gifts and Christmas dinner, rather than quantity, and the Christmas spirit may override frustration caused by limited choices.”

                                                                                                        ENDS

Notes to Editors
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About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.