Britain's false economy

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Despite the economic downturn, Brits are still squandering money on sales items that are never used - creating what is being dubbed a 'false economy'[1] worth an estimated £4.1billion[2] each year - at an average cost of £85.60 per person.

According to new research[3], by Sheilas' Wheels home insurance, the main contributor to this 'false economy' is the contents of a woman's wardrobe with female shoppers spending over £1 billion[4] each year on clothes and accessories that they purchase in the sales but never wear. 

In fact, 10 per cent of the average woman's wardrobe consists of clothes bought in the sales that have rarely been worn, and more than half of these clothes (54 per cent) still have the original tag on.

Over a third (39 per cent) of the women polled admitted that they own at least four items of clothing which they have bought in the sales and worn just once. And despite the adrenalin of bagging a bargain, over half (53 per cent) admit to feeling guilty after making a spontaneous sales purchase.

Nevertheless, bargain hunters are still as eager as ever to shop at the sales with over half of Brits surveyed (54 per cent) admitting that they will be splurging at the sales this January - that’s nearly 26 million[5] people. In addition to this, one in eight early-bird Brits (12 per cent) admit that they intend to get up before daylight and join the queues to make sure that they are first in line to bag themselves a great bargain.

Top ten biggest contributors to the 'false economy':

  1. Clothes (61 per cent)
  2. Shoes (33 per cent)
  3. DVDs (33 per cent)
  4. CDs (27 per cent)
  5. Books (26 per cent)
  6. Accessories (22 per cent)
  7. Home electricals (19 per cent)
  8. Toiletries (19 per cent)
  9. Computer games (19 per cent)
  10. Cookware (15 per cent)

Dr. Cecilia d'Felice, clinical psychologist, comments: "Everyone loves a bargain, but how much do they really cost us? We all get such a buzz from the sales and with each purchase we hope that the high will last longer than it takes for our credit cards to ker-ching their way to the top of our personal debt mountain.

Our purchases are soon discarded as it's not the items that fulfil us, it is the more complex 'chase and kill' that gives us the emotional adrenalin rush and endorphin high that we crave. Each object is superseded by the next and then we wonder why we have twenty pairs of unworn, badly fitting, bargain-basement shoes when five expensive - but-worth-every-penny - pairs would surely do."

Jacky Brown, at Sheilas' Wheels, comments: "The run up to Christmas is no doubt the most expensive time of year, so it is easy to see why people are so eager to find a bargain in the New Year. However, it is important to put some thought into sales purchases as - although you can occasionally get a great deal - unused and unworn purchases mean that more often than not you are actually just squandering your hard earned cash.

That's where the importance of having ample home contents insurance comes in as it's crucial not to underestimate the cost to replace a woman’s wardrobe - even the proportion that has never seen the light of day."

Regional differences:

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Notes to Editors:

  1. An expression coined to convey money wasted on unused sales items.
  2. Calculation: £85.60 (average spend on unused items) x 47,864,400 (population of the UK over 18) = £4,097,192,640. Source: Office of National Statistics.
  3. Sheilas' Wheels used the independent online research company Fly Research who surveyed 1,041 men and women in the UK, aged 18 and over, from across the country, between the 11th and 14th December 2009.
  4. Calculation: £40.99 (average amount spent on unworn clothes by women in the UK) x 24,669,000 (female population of the UK over 18) = £1,011,182,310. Source: Office of National Statistics.
  5. Calculation: 54 per cent (average number of people who plan to shop in sales this January) of 47,864,400 (population of the UK over 18) = 25,846,776. Source: Office of National Statistics.

About Sheilas' Wheels:
Sheilas' Wheels was launched in October 2005 to offer women drivers cheaper car insurance and female targeted product enhancements. In February 2008, the brand moved beyond car insurance to also offer home insurance with product enhancements including alternative accommodation (buildings and contents cover) in the event of loss of utilities in the home (terms and conditions apply), new for old cover on clothes (contents cover) and family legal protection cover which also includes assistance in finding emergency registered childminders while the insured person is attending jury service, and legal representation for a customer's child if they do not gain entry to the school of their choice (terms and conditions apply).

About Dr Cecilia d' Felice:
Dr Cecilia d'Felice is a chartered clinical psychologist, specialising in relationships, dating and all aspects of adult emotional wellbeing. Cecilia has won numerous awards and she has become a regular psychological expert on national TV and Radio. Most recently she presented the 8 part series 'Best Friend Rehab'. She has also appeared on ITN News and contributed to Channel 5's 'Sex - How To Do Everything', Channel 4's 'Sex Education' and Radio 2's Alex Hall Show. As well as this she is a regular contributor to Channel 5's 'The Wright Stuff', has appeared on Channel 4's 'The Friday Night Project' and Chris Evans' Drive Time show on BBC Radio 2. Cecilia uniquely had her own slot on Channel 4's successful psychology show, 'Big Brother on the Couch', with Davina McCall. In addition to this, she has also appeared on BBC World, BBC World Service and Radio 4's ‘Woman's Hour'.