Guilt takes 'high' out of the high street for shoppers
Retail therapy is fast becoming a curse instead of a cure for Britain's recession fatigued consumers, according to new research from uSwitch.com, the independent price comparison and switching service. While six in ten consumers (59%) have lost some of the pleasure of a trip to the High Street, over a third of people (35%) admit to being increasingly plagued by feelings of post-purchase guilt when they do buy something. As a result, 17% of guilty shoppers have taken goods back to the store, costing retailers an estimated £32 million in lost sales.
Guilt can strike shoppers for a number of reasons. Of those who feel guilty, 48% should be saving their money instead of splashing out while one in three (32%) have more important things to be spending their money on such as their mortgage or household bills. Over a quarter of guilty shoppers (27%) feel bad for buying something they don't really need.
However, lack of affordability can also be a big factor - 28% of those who have felt guilty after shopping bought items they couldn't afford while one in ten (9%) bought on credit knowing that they couldn't afford to pay it back.
Many shamefaced shoppers promise themselves that their guilty purchase will be their last, putting it down to a one-off moment of weakness. In fact, 38% of those who feel guilty after buying resolve never to do it again. But for others, shopping has become a stealth mission, with one in three people (33%) admitting to having hidden purchases from their partner, family or friends and 35% admitting to lying about the cost.
Consumers are trying to change their habits though - and this has played a significant part in making shopping altogether less enjoyable. Of those who now get less pleasure from a trip to the shops, almost half (48%) say it's because they are consciously trying to cut back and a visit to the High Street just reminds them of this. Almost a quarter (21%) have seen a dip in pleasure because they can no longer afford the things they want, while 16% dislike the fact that they have to ‘window shop' now.
Consumers have also made significant cutbacks in terms of the amount they spend on non-essential or ‘luxury' items each month - 47% spend less than they did a year ago and 70% allow themselves up to £50 a month on such treats. They have also adopted a far more utilitarian approach to shopping with half (50%) restricting purchases to replacement items only and a quarter (25%) trading down in the shops they visit and the brands they buy. Interestingly, there also seems to be a move towards ‘quality' over ‘quantity' with one in ten (11%) consumers preferring to buy one expensive item that will last rather than a number of cheaper ‘disposable' items.
Ann Robinson, Director of Consumer Policy at uSwitch.com says: "Financial constraints, feelings of guilt and a return to frugality mean that consumers are no longer in thrall to the High Street. The recession has left a legacy of guilty shoppers in its wake and as a result the British love affair with retail therapy is beginning to pale. For many, seeking escape through retail therapy isn't quite the remedy they expect. Instead of being a pick-me-up, a trip to the High Street now only seems to bring them face to face with their financial worries, adding to their woes.
"Worryingly, many consumers are still splashing their cash or buying on credit even though they cannot afford it - the financial implications of this type of spending are grave. I would urge anyone in this spiral to take time out to talk to a trusted friend or advisor to try to break the cycle. Getting into unmanageable debt is not the answer.
"Consumers should also look at their household bills to make sure that they are not overpaying on big ticket bills such as their mortgage, credit cards and energy bills. Cutting back here will free up extra funds which could be used to boost savings, pay off debt or for that extra monthly treat you've been denying yourself."