Quality over quantity: CACI's brand dimensions finds growth in premium brands despite cost of living pressures

Research conducted by CACI, the consumer and location intelligence specialist, has revealed that despite the rise in cost-of-living, premium brands are experiencing a growth in sales. This suggests a greater focus on quality over quantity amongst consumers, as with in-store shopping outperforming online showcasing the value of retail experience.

Brand Dimensions – CACI’s new data platform which compares spend across 300 well-known brands representative of the UK market – shows that 35% of premium retailers saw sales growth when comparing December 2021 with the same month in 2022. This compares with 19% of premium brands showing a decline in sales. Brands such as Reiss, Snow+Rock, Patagonia, and Sunglass Hut all improved on last December while experiencing an average transaction value (ATV) of over £100, highlighting a correlation between quality and quantity.

The data points to a change in spending motivations, with a greater emphasis on not just price, but sustainability and ease of use. While Shein, one of the biggest fast fashion retailers in the market, has sighted significant growth, it has been outperformed by Vinted, the second-hand online marketplace. With the lowest ATV of all retailers measured in Brand Dimensions, at just over £10, there is a suggestion that its growth can be attributed to ease of buying and selling items and spur of the moment purchases, as much as a comparatively low price point.

CACI’s Brand Dimensions has also identified growth in in-store shopping, with more than two-thirds of retailers with over 60% of sales in store seeing an overall increase in performance. Meanwhile, brands operating mostly online have struggled to match 2021; 69% of these online-dominant retailers have had a sales decline.

Rachael Bedford, Brand Dimensions Leas at CACI, commented: “Through Brand Dimensions, we have been able to identify a range of interesting retail trends, that could well define the industry in 2023. Despite initial assumptions around where consumers were likely to spend their money, and the expectation of choosing brands, plenty of consumers are valuing quality over price, highlighting a shift in behaviour and spend.

“In terms of how people are choosing to spend their money, the in-store experience is clawing back territory lost to online, a shift accelerated by the pandemic. There are many factors to consider here, such as Royal Mail strikes reducing confidence in delivery times, particularly during the Christmas period. However, it does showcase the enduring power of physical retail, and only reinforces its importance and the need to keep evolving and improving the IRL experience.”

Profiling 300 of the UK’s biggest brands, as well as the latest emerging concepts across over 400 regions, Brand Dimensions tracks the total monthly spend, the average transactional spend, and the balance of spend across online and offline channels, revealing how brands are performing and the share of spend they are taking from consumers.