- 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.
Running boom to help Puma recover after slow start
By Emma Thomasson
BERLIN (Reuters) – German sportswear company Puma expects the financial impact from coronavirus lockdowns to last well into the second quarter, but believes global growth in running should help to support a strong improvement after that.
“We clearly see a running boom in the whole world,” Chief Executive Bjorn Gulden told journalists, noting that yoga and other outdoor activities are also doing well. He expects the healthy living trend to continue even after the pandemic.
Gulden said his optimism is underlined by the fact that orders for 2021 are up almost 30% compared to a year ago, with bookings for running products particularly high.
However, there is still uncertainty about when lockdowns in Europe will end, with about half of the stores selling its products currently closed in its home region.
For the full year, Puma expects at least a moderate increase in sales in constant currency, with an upside potential, and a significant improvement for both its operating and net profit compared with 2020.
Shares in Puma were down 2.9% at 1100 GMT.
“The wording on outlook looks softer than we had anticipated, even by Puma’s cautious standards,” said Jefferies analyst James Grzinic.
Gulden noted that a shortage of shipping containers bringing products made in Asia would impact margins, with freight rates likely to double in the next 12 months.
Puma will put a stronger focus on the women’s market in future, Gulden said, creating shoes better modelled to female feet for running and soccer and capitalising on partnerships with celebrities like singer Dua Lipa and model Cara Delevingne.
Gulden admitted Puma had been slow in creating its own app, but it plans to launch one towards the end of the year, further supporting online sales, which grew by 63% in 2020.
Rival Nike in December raised its full-year sales forecast after demand for outdoor sportswear drove an 84% surge in online sales.
Gulden said he is hopeful that the Olympics will go ahead in Japan and the European soccer championship will also take place after both were postponed from 2020.
($1 = 0.8226 euros)
(Reporting by Emma Thomasson; Editing by Mark Potter and Keith Weir)
ExxonMobil to sell some UK, North Sea assets to HitecVision for over $1 billion
(Reuters) – Exxon Mobil Corp said on Wednesday it would sell its non-operating interest in its UK and North Sea exploration and production assets to private-equity fund HitecVision for more than $1 billion.
Exxon has been looking to sell its oil and gas assets since late 2019, seeking to free up cash to focus on a handful of mega-projects.
The deal includes ownership interests in 14 producing fields operated primarily by Shell as well as interests in the associated infrastructure. Exxon could also receive about $300 million in contingent payments based on a potential for increase in commodity prices.
Exxon’s share of production from these fields was about 38,000 barrels of oil equivalent per day in 2019, the company said.
Exxon said it would retain its non-operated share in upstream assets in the southern part of the North Sea as well as its interest in the Shell Esso gas and liquids (SEGAL) infrastructure, which supplies ethane to the company’s Fife ethylene plant.
HitecVision, in partnership with Eni, had bought Exxon’s Norwegian North Sea assets for $4.5 billion in 2019.
Initially, Exxon hoped to raise more than $2 billion from the sale, which was planned for late 2019. In June 2020 sources told Reuters that the portfolio was more likely to fetch $1 to $1.5 billion given the oil price weakness last year.
(Reporting by Arathy S Nair in Bengaluru; Editing by Anil D’Silva)
JPMorgan’s blockchain payments test is literally out of this world
By Anna Irrera
LONDON (Reuters) – Stuck in space with bills to pay? Don’t worry, the satellites could take care of it.
JPMorgan Chase & Co has recently tested blockchain payments between satellites orbiting the earth, executives at the bank told Reuters, showing that digital devices could use the technology behind virtual currencies for transactions.
The so-called Internet of Things (IoT), where devices connect to one another, is most associated with consumer electronics, including smart speakers like Amazon Echo and Google Home, and banks want to be ready to process payments when these smart devices start doing transactions autonomously.Umar Farooq, the CEO of JPMorgan’s blockchain business Onyx, thought space was a cool place to try it out.
“The idea was to explore IoT payments in a fully decentralised way,” Farooq said. “Nowhere is more decentralised and detached from earth than space.”
“Secondly we are nerdy and it was a much more fun way to test IoT,” he said.
To run the space experiment, the bank’s blockchain team did not send its own satellites into space, but worked with Danish company GOMspace, which allows third parties to run software on its satellites.
Farooq said the satellite test showed blockchain networks could power transactions between every day objects.
The test also showed it could be possible to create a marketplace where satellites send each other data in exchange for payments, as more private companies launch their own devices into space, Tyrone Lobban, head of blockchain launch, at Onyx said.
Back on earth, examples of IoT payments that could become a reality sooner include a smart fridge ordering and paying for milk on an ecommerce site, or a self-driving car paying for gas Farooq said.
Blockchain, which first emerged as the software underpinning cryptocurrencies, is a shared digital ledger of transactions. Financial companies have invested millions of dollars to find uses for the technology hoping it can reduce costs and simplify more complex IT processes, such as securities settlement or international payments.
But so far, blockchain has yet to have widespread impact in financial services.
JPMorgan has been one of the most active banks in blockchain, announcing it had created its own distributed ledger called Quorum in 2016, which was sold to blockchain company Consensys last year. The bank also developed a digital coin called JPM Coin and in 2020 created Onyx.
Onyx has more than 100 employees and its blockchain applications are close to generating revenues for the bank, it said.
Among the division’s applications is Liink, a payments information network involving more than 400 banks, a project to replace paper checks and IoT experiments, Farooq said.
(Reporting by Anna Irrera. Editing by Jane Merriman)
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