Sales of luxury goods and services have largely escaped the economic downturn, a new report has found.
The British Lifestyles report by research group Mintel revealed that most sectors of consumer spending have seen falling sales in the recession, with only technology and clothing bucking the trend and seeing any significant growth since 2009. However, spending on luxuries such as clothing and beauty treatments has remained high as Britons choose to prioritise small luxuries while forging more extravagant spending such as holidays abroad.
Richard Perks, research director at Mintel told the Guardian: “Britons like to go out and shop and although they are saving more there is no evidence of a fundamental shift in behaviour."
Although spending has increased Perks cautioned: “Like the UK economy as a whole, while consumer temperament this year is rosier than it was last year, the current situation is hardly inspiring when considering the economic pain in the pipeline from higher taxes and reduced public spending.”
He added: “Savings are a key priority among consumers and 70% of adults are focusing on building their wealth and repairing their financial position.”
The independent restaurant trade has been hardest hit by the recession as small businesses have struggled to compete with larger chains offering special discounts. Consumer spending on eating out per capita spending rose by just 0.7% in 2009, compared to a rise of 43% between 1999 and 2009.
Despite economic obstacles many small businesses have said that the recession has forced them to “think creatively” and many agree they have come out “leaner and more positive” as a result.