J16764 hs Leisure Consumer Q3 2018 InfoGr CONTACTS...

Will consumer confidence improve

in the last threemonths of 2018?

Will the festive season get consumers in

the mood to spendon leisure?

Are consumers looking to treat themselves with products or experiences

this Christmas?

Will the year end on a high?

© 2018 Deloitte LLP. All rights reserved.

Numerical values represent changes as percentage points from one quarter to the next. The measure used is net spending which is the balance of those

spending more and those spending less.

As the summer has drawn to a close, the weather is not the only thing that

has cooled down: consumer confidence has declined three points between the second and third quarter of 2018. Yet, consumers remain as confident as they were this time last year, leaving leisure spending also on par with levels

seen a year ago. However, the trend towards fluctuating leisure spending suggests that the previously resilient consumer is gradually becoming more

aware of the wider economic uncertainty.

Passion for leisure

UK Leisure Consumer – Q3 2018

Q3 2018

Still creatures of habit?

Compared to a very positive Q2, leisure spending has declined in eight out of the 11 categories this

quarter, with most of the habitual categories seeing a fall. The spending on eating and drinking out

has been particularly affected by the extended period of summer weather as the hottest quarter on record has encouraged the consumers to enjoy their gardens instead of bars and restaurants.

Spending on holidays and short breaks has held up against Q2 but as this expenditure is very

seasonal, a focus on year-on-year changes is more meaningful.

In-home

leisure

Drinking

in pubs/

bars

Eating

out

Drinking in

coffee shops/sandwich

shops

-5 -5

Attending

live sports

events

Other

leisure

Betting

and

gaming

Leisure consumers reported spending less on…

Ch

an

ge

in

qu

arte

r

…apart from…

Going to

the gym or

playing

sport

-3 -1-2

+1Culture

and

entertain-

ment

Experiencing life

While the quarterly changes show a negative trend, leisure spending is still up in most categories

when comparing to this time last year. Gym and sport has seen a rise as consumers look to get

back in shape after a summer of fun. The other categories benefitting from a lift include big-ticket items such as holidays, entertainment and cultural activities, which shows that consumers still

place a high importance on memorable experiences. The spending patterns of younger and older

consumers also diverge notably, with the 18-34s prioritising everyday leisure, while the over-55s

have increased spending mainly on big ticket items such as holidays.

Consumers reported

spending less year-on-year…

Ch

an

ge

in

ye

ar

…while spending more or the same on…

Going to

the gym or

playing

sport

+2Eating

out

-2

+2

Long

holidays

Drinking

in pubs/

bars

-1

Other

leisure

+2

Betting

and

gaming

+1Drinking in

coffee shops/sandwich

shops

-3

In-home

leisure

No

change +2

Culture

and

entertain-

ment

Challenges ahead?

Consumers plan to continue to reign in their leisure spending at least until the end of this year by

spending less in the majority of the leisure categories. Long holidays and other leisure activities

might see a rise in net spending especially as younger consumers (18-24 year olds) focus their

spending on big experiences. However, consumers may not be planning to indulge in as many

festive meals out this year, with intended net spending on eating out down four points on Q3 2017.

This suggests that the restaurant sector will need to find ways of changing the consumers’ mind if they want demand to hold up.

Ch

an

ge

in

ye

ar

-3

Attending

live sports

events

No

change

Consumers expect to spend less in the majority

of categories……apart from...

Going to

the gym

or playing

sport

-2

Eating

out

-4

+1

Long

holidays

Drinking

in pubs/

bars

Short

breaks

Other

leisure

+3Betting

and

gaming

-1

Drinking in

coffeeshops/sandwich

shops

-1

In-home

leisure

-1

Cooling down

After a year of trending upwards, the Deloitte Consumer Confidence Index declined by three points in Q3 2018 from previous quarter. A more negative consumer sentiment around the level of debt

and disposable income were the biggest contributors to the quarterly fall. This explains why leisure

spending also dipped down this quarter. However, both confidence and net expenditure on leisure are flat year-on-year. The increasing fluctuation on the latter however suggests that consumers now feel the financial pressure to keep a closer eye on their discretionary leisure spending.

-12%

-11%

-10%

-9%

-8%

-7%

-6%

-5%

-4%

-3%

-2%

Q3 2018Q2 2018Q1 2018Q4 2017Q3 2017Q2 2017Q1 2017Q4 2016Q3 2016Q2 2016Q1 2016

Net spending on leisure

Source: Deloitte

Deloitte Consumer Confidence Index

Attending

live sports

events

Contacts

Simon Oaten

Partner

Transportation, Hospitality

& Leisure

020 7007 7647soaten@deloitte.co.uk

Andreas Scriven

Lead Partner

Hospitality & Leisure

020 3741 2068ascriven@deloitte.co.uk

Alistair Pritchard

Lead Partner

Travel

07710 326724

ajpritchard@deloitte.co.uk

Edward Jenkins

Director

Hospitality & Leisure

020 7007 9989ejenkins@deloitte.co.uk

-5 -3 -2

-2

+1

Short

breaks

-2

+1

Short

breaks

Long

holidays

No

change

No

change

Culture

and

enterta-

inment