Rising prices in the wake of the Brexit vote will not deter UK shoppers from spending on premium products, according to new research.
Only 6% of shoppers surveyed by the Centre for Retail Research would refuse to buy a premium product when faced with a 10% price increase, with 61% of shoppers saying they would buy the premium brand anyway.
However, while half of those surveyed said they intended to spend the same or more on premium items, 39% said they intended to spend less.
Prices in the UK are thought to be rising at an annual rate of 3%, with price rises a common concern for many across the industry.
Consumers are nevertheless concerned about the effect of rising prices in the wake of the vote, with 40% of those surveyed saying they will be “worse off” post-Brexit.
Mark Haviland’s comment, EVP Global Development at Rakuten Marketing, which co-authored the report, commented: “Whilst sentiment suggests that people will still purchase premium products if prices rise slightly, the viewpoints on what Brexit will do to spending on these brands overall is completely polarised. The customer segments retailers target are likely to be completely split in how they approach shopping over the next few years.”