Bleak prospects for luxury and tailoring, says post-pandemic spending survey
Sales of luxury goods and men’s tailoring are expected to take a major hits this year as consumers turn away from ‘frivolous’ spending following lockdown restrictions, a survey by Brightpearl claims.
Overall, luxury fashion spending is likely to be down by 24% in 2021, the survey on how Covid will impact on spending suggests.
The study, reported by Retail Times, also says just 5% of UK consumers are looking to buy luxury goods such as designer handbags, watches and jewellery, over the next 12 months.
Meanwhile, only 6% of British shoppers are planning to buy business suits in 2021 as the knock-on effect of working from home during lockdowns affects workwear sentiment. Just 8% of shoppers made a ‘big ticket’ purchase since the initial lockdown in March 2020, the report claims.
“The luxury sector will be impacted hugely, who wears a suit to a meeting on Zoom?”, said Derek O’Carroll, CEO of Brightpearl.
He added: “As people continue to tighten their belts, and with the knowledge that many major events are likely to be cancelled again this year, it seems people will be shying away from splashing out on a pair of premium boots or a handbag that they aren’t sure they’ll be able to take out to show”.
The survey of 2,000 consumers also revealed that people are showing less loyalty to brands since the pandemic began.
Some 45% of those surveyed said they have been open to trying new brands. Meanwhile, 43% claim that uncertainty over the economy has made them change their shopping habits drastically.
O’Carroll added: “Shifts in spending habits apparent at the start of the pandemic are likely to accelerate this year as we grapple with fresh restrictions on movement likely to last well into the spring.
“It is going to be a choppy 12 months for the entire luxury sector as consumers move away from frivolous spending and concentrate on pure survival mechanisms. The harsh reality, though, is there will be winners and losers across all categories. What firms do next counts”.
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