Mindful Shopping Reigns Supreme As Clearpay Customers Seek Quality Over Quantity
Clearpay and Oxford Economics reveal that shoppers are leaning into “less is more” approach, shopping consciously and sustainably
From fuel to groceries, supply chain disruptions in this post-Covid era have caused a significant increase in consumer prices. As inflation reaches a 40-year high, concerns of a possible recession amid the current cost of living crisis have worried consumers. They are turning to mindful shopping habits amidst the crisis, cutting back and focusing on quality over quantity when making purchases.
Clearpay, the leader in “Buy Now, Pay Later” shopping, commissioned the 2022 State of Retail Report in partnership with Oxford Economics to evaluate the economic outlook for the industry and to shed light on the implications for retailers as we look ahead. The report found that as Brits navigate this “cost of living crisis”, shoppers are turning to Clearpay to manage their finances and budget for everyday purchases.
The research revealed that shoppers purchased 68% fewer products in the last 12 months, leaning into a ‘less is more’ approach as they opt for more premium choices as opposed to cheaper alternatives. The 2022 report also indicates that fashion purchases dominate as the most frequently identified retail segment where consumers have become more mindful, as more than one-in-three shoppers claim they had shopped around more to identify the most cost effective option.
The responsible retail choices trend also extends beyond buying pricey fashion items as savvy Brits have also put more thought into seeking out sustainable pieces that offer longevity – insight which mirrors Clearpay’s 2022 Gen Z report. The report found that over 50% of Brits shop sustainably when possible, and a retailer’s commitment to eco-friendliness pays dividends, as it inspires brand loyalty for UK shoppers, and nearly 20% of UK shoppers have stopped buying from a brand that didn’t meet their sustainability standards.
As a consequence of conscious consumerism, small and medium-sized business (SMB) retailers have benefited from significantly stronger sales growth during the pandemic period. Overall, SMB retailers’ sales growth was nearly three times higher compared to large retailers between 2019 and 2021 – continuing the recent trend which has seen SMB retailers growth outperform in four of the previous five years, reversing the pattern in the first half of the decade.
As retailers and consumers alike continue to navigate the current economic climate, exploring value-seeking solutions to meet shoppers where they are will continue to be an important takeaway for retailers. As BNPL continues to be an increasingly popular payment choice for the next generation of shoppers, offering BNPL helps retailers attract conscious consumers. Of those surveyed, 58% of BNPL users reported ease of cash flow management as a primary motivator for using the tool, with 35% citing flexible payment solutions as a further motivator.
With Clearpay, shoppers can spread costs across four instalments with no interest and no risk of falling into a revolving debt trap. As of March 31, 2022, Clearpay is offered by more than 144,000 of the world’s favourite retailers and more than 20 million active customers have adopted the service.
Five facts about Clearpay:
- Clearpay is completely free for customers who pay on time;
- If customers miss a payment their account is immediately made unavailable so that they cannot accrue more debt or fall into revolving debt;
- Clearpay does not report to credit agencies and will not impact a customer’s credit score;
- Globally, 90% of Clearpay transactions are made with a debit card;
- Over the 12 months ended March 2022, 95% of instalments were paid on time and 98% of purchases incurred no late fees.
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