BUSINESS INTELLIGENCE
CONSUMER SPENDING
Supermarket spending hit by cost-of-living crisis Barclaycard data also reveals a significant rise in public transport spending, reflecting the fact that more Brits are now commuting to offices.
O
verall consumer card spending grew 9.3% year-on-year in May, according to new data from Barclaycard. Barclaycard sees nearly half of the nation’s credit and debit card transactions. Its data reveals shopping at supermarkets and specialist food and drink stores saw slight declines (-2.0% and -0.9% respectively) compared to May 2021, when Covid restrictions meant more people cooking at home rather than eating and drinking out. Another possible reason for these declines is that 41% of consumers now say they are looking for ways to reduce the cost of their weekly shop in the face of rising living costs. Overall spending on essential items grew 4.8%, largely propped up by inflation, and a 24.8% surge in fuel spend as petrol and diesel prices continued to climb. There was also a big rise (83.3%) in public transport spending, reflecting the fact that more Brits are now commuting to offices compared to the same period last year, when working-from-home guidance was still in place. The cost-of-living squeeze is also leading Brits to rein in their spending on eating and drinking out, with restaurants (-5.9%) and bars, pubs and clubs (-1.2%) seeing slight declines when comparing spending in May with April.
José Carvalho, Head of Consumer Products at Barclaycard, said: “The costof-living squeeze is clearly influencing discretionary spending habits, with figures showing a decline in subscriptions, and a drop in spending at restaurants, bars, pubs and clubs. “Despite this, there are some encouraging signs, particularly in
travel industry, as Brits’ appetite for going abroad continues to grow as we approach the summer holidays. “While consumer confidence continues to fall, we hope to see at least a short-term boost thanks to the Jubilee Weekend, and the recently announced £400 energy bill discount coming in October.”
WEDNESDAY 8TH JUNE 2022/ ISSUE 108 / SLRMAG.CO.UK I 19
