UK consumer card spending climbs 5.4% YoY in Jun 2023

After a decline in May at -1.9 per cent, sports and outdoor retailers returned to growth at 1.1 per cent, as consumers embraced more active, outdoor lifestyles, Barclays said in a press release.

Over two thirds or 67 per cent of shoppers said they are looking for ways to reduce the cost of their weekly shop. In a further sign that Brits are seeking out value-for-money wherever possible, discount stores were up 8.8 per cent, seeing their largest growth since April 2021.

Eight in 10 or 81 per cent are worried about ‘shrinkflation’—when products are sold in smaller packages or portion sizes yet cost the same or more than they used to. In response to shrinkflation, 29 per cent of shoppers are buying their favourite products less often— only when they want to treat themselves—while almost a fifth or 18 per cent are switching to brands which haven’t changed the size of their products.

Will Hobbs, chief investment officer, UK Wealth Management, Barclays, said: “The UK economy remains in a precarious spot. Inflation contagion is perhaps furthest advanced here on the evidence of incoming wage and core inflation data. There is more work for central bankers yet, even as the creaks and strains on the mortgage and other borrowings become increasingly audible.

“Difficult quarters lie ahead as the surge in interest rates continues to put pressure on household cash flows. However, there are mitigants. Much of that extra mortgage strain will fall on households more able to bear it, with significant excess savings still left over from the pandemic.”

ALCHEMPro News Desk (NB)