Following new research released by KPMG, which shows the impact that the rising cost of living is having on consumer spending, the British Institute of Kitchen, Bedroom & Bathroom Installation (BiKBBI) has issued a caution to the KBB industry, with a forecast of big-ticket purchasing hardship later in 2022, as consumers begin to feel the bite of ongoing price rises.
BiKBBI CEO Damian Walters warned “The home improvement sector has flourished over the last two years, but we must not assume that the nation’s current rate of investment in their homes will continue into 2023. The data we are seeing clearly demonstrates a decline in consumer confidence, with predictions that the cost of living will continue to rise throughout 2022. Its highly probably that, as disposable income reduces, the decline we are already seeing in big-ticket spending will continue to fall.”
British Retail Consortium’s Chief Executive, Helen Dickenson OBE (pictured) yesterday said “The rising cost of living has crushed consumer confidence and put the brakes on consumer spending. Sales growth has been slowing since January, though the real extent of this decline has been masked by rising inflation. Big-ticket items have been hit hardest, as consumers reigned in spending on furniture, electricals and other homeware; compounded by delays on goods coming from China”.
Walters added “There are other factors that will undoubtedly impact disposable income and savings spend in the short to medium term including the government’s plan to ban the sale of new fossil fuel vehicles by 2030. With the unprecedented fuel price affecting the pocket, consumers may choose to invest their spend with car manufacturers as opposed to the home improvement industry.
We are also back in competition with the travel sector, as the world begins to open up, with 38% of consumers surveyed by KPMG intending to spend their savings on holidays versus 32% on home improvements.”
And history shows that in times economic uncertainty, consumers will opt for cheaper, unskilled labour and therefore BiKBBI is urging tradespeople to widen their peripheral vision and look beyond their immediate order books in order to safeguard their future.
“Our sector should most definitely remain optimistic but be prepared for further uncertainty and tough trading times ahead” concludes Walters.
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