The retail economy is set to get a significant boost this summer with around two-thirds (63%) of people taking a holiday – and spending on clothes and accessories to take away, as well as spending in the UK if holidaying here.
KPMG UK looked into demand for its latest quarterly Consumer Pulse survey. It found that, of the 3,000 UK consumers polled, 45% said they have booked a summer holiday, with a further 18% planning on booking at short notice.
Three-quarters of those having booked a summer holiday say they are planning new purchases to pack in their suitcase, with 42% set to buy clothing and 25% footwear, among other items.
Healthy level of demand
Linda Ellett, head of consumer, retail and leisure for KPMG UK, says that this level of demand is particularly healthy given the potential impact of the Iran war. Over half of people (56%) surveyed said that the Iran conflict had not influenced their summer holiday decision. “Spending on holidays, and UK days out, continues to be prioritised from available budget, far more so than other big-ticket items,” Ellett said.
However, higher travel costs due to the conflict have influenced summer holiday decision-making, with one in ten (10%) saying they changed their planned destination as a result, and 10% saying it’s why they are not taking a break this summer. A further 9% cited the risk of flight disruption as a reason for booking, or planning to book, later than usual – with 8% saying it’s why they’re not holidaying at all this summer.
After holidays, KPMG’s study found that UK days out were the second most common priority for summer related spending, followed by eating out, then entertaining family and friends at home.
Other summer spending plans indicate that 15% of people plan to do minor home improvement work (such as the painting of one room) in the next three months, but 43% of people said they have no plans to spend on big-ticket items.
Improvement in consumer confidence
The study also found that consumer confidence levels over the last three months remain have marginally improved since the first quarter of 2026, with 55% of consumers secure in their personal finances (54% in Q1) and 23% insecure (down from 25% in Q1). 60% of people feel that the UK economy is worsening (down from 62%), citing the cost of groceries as their reasoning for this.
The findings come as the most recent ONS figures show that retail sales volumes increased by 1.2% in May 2026, following a 1.3% fall in April. Online sales helped drive this, with ecommerce sales values soaring 12.2% YOY and by 9.8% YOY for the three months to May.
With two-thirds of consumers planning a summer break, bringing a shopping boost for retail, the impact of the ongoing Iran war might not be as detrimental this summer as some retailers fear. Geopolitical tensions may be influencing some decisions around destinations and timing, but consumers are still prioritising spending on holidays and days out. Combined with a modest uplift in personal financial confidence, KPMG’s findings suggest that retail should receive a boost this summer despite broader economic concerns.
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