This is what April’s consumer horror show is likely to look like
The first data from April, from Kantar, show grocery, as expected continuing to benefit from consumers staying (and more importantly, eating) at home, with a rise of 5.5% in the four weeks to 19 April. The remainder of the consumer spending picture is certain to be a horror show. Total UK consumer spend is set to slump by an estimated 39%.
But due to furloughing and other income guarantees, the impact of the Coronavirus 19 lockdown on most consumers’ net incomes is not going to be nearly as drastic. The result is going to be a huge leap in net saving in April. This is the tiny silver lining for retailers to the enormous black cloud engulfing them at the moment. If they can persuade UK households to part with this forcibly saved cash, whether through online sales, or opening up their stores with social distancing in place, ironically there is potentially a mini-bonanza to be had. The size of this prize will be the subject of the next blog.