Brits ‘already cutting back on subscriptions and beauty kits to tackle cost of living woe’

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While separate research shows concerns around rising costs have prompted seven in 10 adults to be more selective about the subscription services they use.

More than a third (36 percent) have cancelled at least one subscription because their disposable income has fallen as interest rates and inflation increase, with 31 percent blaming this on higher prices.

On average, Brits have cancelled two contracts each, while the number of households signed up to subscriptions has dipped by 14 percentage points in a year, from 81 percent to 67 percent.

Kirsty Morris, managing director of Barclaycard Payments, which processes £1 in every £3 spent on credit and debit cards in the UK, said: “Subscriptions saw huge growth during the pandemic as Brits spent most of their time at home, so it was inevitable this would steady as the economy opened back up.

“Yet, as the rising cost of living continues to squeeze finances, many consumers are re-evaluating their discretionary spending and cutting back on some products and services they no longer deem essential.

“It remains clear however, that consumers still value the ease, convenience and often additional extras they can access through subscriptions; whether that be through digital services, or products delivered regularly to their door.”

The research shows that, for many, the appeal of sign-up products and services remains strong, despite economic uncertainty.

Almost four in 10 (38 percent) believe subscriptions offer good value for money and 34 per cent think they help them manage their finances at a time of rising costs.

While 38 percent of consumers will also look for the best value when selecting new subscriptions.

Convenience (42 percent), reassurance that key products will be regularly delivered (42 percent), and the ability to try new items which they may not normally purchase (55 percent) were also named as key benefits.

Meanwhile, 80 percent of consumers would like to see businesses offer an “easy opt out” process for their subscriptions.

And 26 percent want a feature on their mobile banking app that helps them keep track of subscription payments.

Kirsty Morris added: “Many retailers adapted quickly during the pandemic to meet changing demands.

“Those which continue to evolve their subscription offering to respond to this new set of challenges will be best placed to benefit from increased consumer loyalty and satisfaction.”

A THREE-YEAR REVIEW OF POPULAR SUBSCRIPTIONS

Entertainment e.g. music and film – 30 percent (2022), 46 percent (2021), 48 percent (2020)

Beauty and grooming – eight percent (2022), 12 percent (2021), seven percent (2020)

Books and literature – six percent (2022), 11 percent (2021), six percent (2020)

Alcoholic drinks – six percent (2022), nine percent (2021), six percent (2020)

Cleaning products – six percent (2022), eight percent (2021), four percent (2020)

Health – six percent (2022), 11 percent (2021), seven percent (2020)

Technology – five percent (2022), 14 percent (2021), nine percent (2020)

Fitness – four percent (2022), 11 percent (2021), six percent (2020)

Pet food and supplies – four percent (2022), 11 percent (2021), four percent (2020)

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