2 minute read
Consumer Spending
by 55 North
Food retailers boosted by rising inflation
Barclaycard data shows supermarket shopping saw its largest year-on-year uplift since February 2021, while specialist food and drink stores returned to growth for the first time in eight months.
Consumer card spending grew 4.7% year-on-year in August – the smallest uplift since March 2021 – as rising living costs hampered the retail sector, according to new data from Barclaycard.
The figures reveal that spending on essential items grew 7.2% year-on-year – its highest growth since December 2021. Supermarket shopping saw its largest year-on-year uplift (4.7%) since February 2021, while specialist food and drink stores returned to growth (0.6%) for the first time in eight months. These uplifts are likely due to rising inflation, Barclaycard said.
However, spending at supermarkets and food and drink specialist stores has declined compared to July 2022 – down -3.6% and -1.6%, respectively, with nearly half of Brits (47%) seeking to obtain more value from or to reduce the cost of their weekly shop. Of these shoppers, 55% are cutting down on luxuries or one-off treats for themselves, and 53% are buying budget or ownbrand goods over branded items – an increase compared to July’s data (52% and 47%, respectively).
Spend on fuel rose 23.9%, its lowest growth in 12 months, owing to a slight decline in petrol and diesel prices and drivers opting to reduce vehicle use to save money. More than one in 10 workers are choosing to walk or cycle to work instead of driving due to rising fuel costs, and 11% have started to commute by public transport.
José Carvalho, head of consumer products at Barclaycard, said: “The cost-of-living crisis is clearly leading Brits to cut-back on some non-essential purchases to ensure they can afford the increasing costs of their weekly grocery shop and household utility bills. Yet, despite these inflationary pressures, consumers have still been keen to enjoy the summer weather by eating and drinking out and going on staycations.
“However, an energy price rise on the horizon means the majority are understandably very concerned about whether their finances can stretch far enough to afford rising household bills.”
