- Nearly 1 in 3 UK consumers claim to have more disposable income than in 2016 (31 per cent)
- Shoppers in the UK spend an average of £12.31 a day on indulgent / luxury purchases
- Londoners are by far the most indulgent, spending three times the UK average on habits like going for brunch and buying magazines
- Opportunity for retailers to tap into wider spending trends through tailored offers and discounted products
Daily spending habits and indulging on life's 'little luxuries' like magazines, after-work drinks and going for brunch are costing UK consumers an average of £12.31 a day, adding up to a considerable £4,493 a year. New research exploring spending habits by VoucherCodes has highlighted that nearly 1 in 3 UK consumers (31 per cent) now claim to have more disposable income than in 2016 which, despite doom and gloom reports, is leaving people room to treat themselves more and more.
This comes as positive news for retailers and businesses looking to tap into wider spending trends. On top of the £12.31 they are already spending each day, consumers would be encouraged to spend more money on small luxuries through retailers offering discounted products (45 per cent), rewards for purchase and loyalty (27 per cent), and offers tailored to their lifestyle (13 per cent). Nearly two thirds of people (63 per cent) feel that UK shoppers spend more on 'luxury' goods that they can afford.
Interestingly, although this boost in disposable income is no doubt influencing some people's spending, for 36 per cent of shoppers, more money doesn't mean an increase in purchases as they don't change their spending habits even if their financial situation changes.
Furthermore, despite the annual cost of life's 'little luxuries', only 36 per cent of UK shoppers say they are aware of how much their daily indulgences are setting them back by each year. Ignorance appears to be bliss for the some of the nation, with over one quarter (28 per cent) saying they don't care how much they are spending on their daily pick-me-ups, while just 15 per cent of consumers are looking to cut back their spending on these items, preferring to spend for today rather than save up for tomorrow.
Paul Lewis, Senior Director of Marketing at VoucherCodes said: "The rise in disposable income is great news for retailers and businesses, as people are prioritising treating themselves and indulging in little luxuries to have the lifestyle they want. By working with a strategic marketing partner such as VoucherCodes to offer consumers targeted and personalised offers, brands can really capitalise on this trend and encourage consumers to spend more whilst in-store or online. Despite the gloomy forecasts surrounding Brexit and the UK economy, this trend demonstrates fears are yet to hit UK consumer confidence – great news for retailers as we move into the last quarter of the year."
Top Ten Costly 'Little Luxuries'*
|Little Luxury||Daily Cost||Yearly Cost|
|3. Pint of Beer||£4.03||£1,471|
|4. App Downloads||£4.00||£1,460|
|5. Music Downloads||£3.95||£1,442|
|6. Film/TV downloads||£3.89||£1,420|
|7. Breakfast to go from popular food chains||£3.65||£1,332|
|8. Glass of Wine||£3.65||£1,332|
|9. Lunch to go from popular food chains||£3.38||£1,234|
*average amounts spent for those who said they spend money on these items
The report also found that men outspend women when it comes to spending on daily treats, with males spending an average of £13.66 per day compared to females, who spend an average of just £11.15, working out at £915 less over the course of the year.
Looking across the UK, Londoners spend the most money on little luxuries by some distance – an average of £26.38 per day which comes in at almost three times the national average, equating to an £9,629 over the course of a year. In contrast, those in the East of England are the thriftiest, spending just £7.74 per day on daily indulgences.
Where age is concerned, the older generation claim to have the best control over their spending on little luxuries, with pensioners over the age of 72 spending a quarter of the amount that millennials do, at £5.96 per day compared to 18-34 year olds, who admit to spending a massive £20.32 on daily indulgences.