Survey Data Reveals Nearly a Third of British Consumers Plan to Panic-Buy Prior to the Value-Added Tax (VAT) Increase

One in two consumers plans to reduce his or her spending post-VAT increase With the value-added tax (VAT) increase looming around the corner, British families have started bracing themselves for increased costs of living. New survey data (1,004 respondents; conducted between 8 October 2010 and 18 November 2010) from PriceGrabber.co.uk(R), a part of Experian, reveals nearly a third of British consumers plan to make panic purchases of big-ticket items prior to the VAT increase next week, which will be followed by a period of reduced spending on nonessentials.

LONDON, December 26, 2010 -

    Consumers plan to panic-buy prior to the VAT increase

    - Thirty-one percent of consumers plan to increase their spending before
      the VAT increase in order to take advantage of pre-VAT prices

    Panic shoppers spend on big-ticket items pre-VAT

    - Forty-seven percent said they would spend money on home furnishings and
      appliances prior to the VAT increase
    - Forty-two percent of shoppers indicated that they plan to spend money
      on desktop computers/laptops before the VAT increase
    - Forty percent indicated they would purchase other consumer-related
      electronics prior to the VAT increase
    - Thirty-eight percent said they would spend extra money on clothing and
      shoes before VAT

    Consumers are divided when it comes to cutting back after the VAT
      increase

    - Fifty percent of consumers plan to cut back on spending after the VAT
      increase
    - Fifty percent of consumers do not plan to cut back on spending after
      the VAT increase

    Consumers will cut back post-VAT on nonessentials

    - Thirty percent of respondents indicated evenings out (dinner and
      cinema) were among the listed areas where they plan to cut back after
      the VAT rise
    - Twenty-nine percent of consumers will spend less on jewelry and watches
      post-VAT increase
    - Twenty-seven percent of consumers will cut back on home-furnishing and
      appliance purchases after the VAT increase
    - Twenty-five percent of consumers intend to decrease their spending on
      non-computer-related consumer electronics after the VAT increase
    - Twenty-four percent revealed they would reduce spending on clothing and
      shoes

"In previous years, Christmas and January sales have been popular times
to purchase big-ticket items. According to our research, consumers that plan
to increase their spending pre-VAT are focusing on big-ticket purchases like
home furnishings and computers in order to avoid paying the increased VAT on
these items," said Justin Sedgmond, Head of PriceGrabber.co.uk. "After the
VAT increase, consumers will be reducing purchases in some same big-ticket
item categories and nonessentials like evenings out."

Follow PriceGrabber on Twitter @PriceGrabber.co.uk.

About PriceGrabber.co.uk(R)

PriceGrabber.co.uk, a part of Experian, is a leading online shopping site
where savvy shoppers can instantly find and compare millions of unique
products and services across 20 categories with thousands of merchants.
Compare products side by side to find the right retailers at the best prices
within popular categories, such as Digital Cameras, Electronics, Computers,
Clothing, Books, TVs and more. PriceGrabber.co.uk provides shoppers with the
right product from the right merchant at the best price anytime, anywhere.
Visit us at www.pricegrabber.co.uk.

About Experian

Experian(R) is the leading global information services company, providing
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helps businesses to manage credit risk
(www.experian.com/small-business/business-credit-risk.jsp), prevent
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individuals to check their credit report (www.experian.com/) and
credit score
(www.experian.com/consumer-products/report-and-score.html) and protect
against identity theft
(www.experian.com/consumer-products/identity-theft-protection.html).

Experian plc is listed on the London Stock Exchange (EXPN) and is a
constituent of the FTSE 100 index. Total revenue for the year ended March 31,
2010, was $3.9 billion. Experian employs approximately 15,000 people in 40
countries and has its corporate headquarters in Dublin, Ireland, with
operational headquarters in Nottingham, UK; Costa Mesa, California; and Sao
Paulo, Brazil.

For more information, visit www.experianplc.com.

Experian and the Experian marks used herein are service marks or
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and company names mentioned herein are the property of their respective
owners.

Lisa Balliache, The PR Network, T: 07768-264132, lisa.balliache at theprnetwork.co.uk; or Sharon Banfield, PriceGrabber, +1-323-601-1231, sbanfield at pricegrabber.com