2.4 million people claim to have spent £500 or more on stockpiling
Stockpiling is having a negative impact on cashflow for businesses.
Over half (64%) of people working for organisations that have stockpiled due to Brexit believe that they have missed out on pay rises.
This is after research commissioned by Premium Credit revealed that 22% of people claimed their employers have started to stockpile goods, with 4% expecting to start over the next few weeks.
Moreover two out of three (66%) said that it adversely affected their employer’s expansion plans, 51% said it affected promotions and 60% highlighted it impacted plans for recruitment.
The implications of this could see more people relying on credit to make purchases, businesses curbing expansion plans and subsequently lead to underinsurance of stockpiled goods.
Stockpiling
The research was carried out by Consumer Intelligence, which conducted interviews with 1,158 consumers online in the UK that were currently in employment.
It found that over 2.4 million people (30%) claim to have spent £500 or more on stockpiling and one in five have spent over £1000.
Amount spent on stockpiling over fears of a bad Brexit | Percentage of those people who are stockpiling because of Brexit | Estimated number of people |
|---|---|---|
|
Under £200 |
52% |
4.4 million |
|
Between £201 and £500 |
20% |
1.7 million |
|
Between £501 and £1,000 |
11% |
872,000 |
|
Between £1,001 and £2,000 |
13% |
1.1 million |
|
Between £2001 and £3,000 |
3% |
262,000 |
|
Over £3,000 |
2.5% |
218,000 |
Adam Morghem, strategy and marketing director at Premium Credit explained: “With cashflow being adversely affected, it puts pressure on businesses and individuals to rely more on credit to buy the goods and services they need.
“Our findings also suggest that many people may also be missing out on promotions and pay rises as a result of Brexit related stockpiling.”
Meanwhile 16% of people think that stockpiling has had a “very negative” impact on cashflow for employers whereas over half (58%) said this has had a “slightly negative” impact.
This was also the case for households, with 17% of people starting to stockpile, 80% said to have done this with food, 63% with medicine and 43% with drinks.
No comments yet