Consumer spending was reportedly down 13.8 per cent in February, compared to the year before, as lockdown restrictions continued to hit sales. Yet, according to Barclaycard, some sectors enjoyed record growth and consumer confidence in the wider UK economy is now at its highest point in the past 12 months (up 4 per cent to 28 per cent).
The data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, revealed that spending on essential items grew 5.3 per cent, spending at discount stores was up 32.3 per cent, while online grocery spend rose 115.2 per cent as many people continued to rely on home deliveries during the lockdown.
By comparison, with much of the high street still closed, spending on non-essential items was down 22.1 per cent year-on-year (similar to January’s 24.2 per cent decline).
Online retailers continued to see strong growth, with online sales accounting for 53.7 per cent of all retail spend in February.
Spending at online general retailers (marketplaces and catalogue shops etc) doubled, while online specialist retailers – including florists and jewellery stores – saw 95.9 per cent growth. Fuelled, in part, by Valentine’s Day and what Barclaycard calls ‘lockdown pick-me-ups’.
Raheel Ahmed, head of consumer products at Barclaycard, said: “Despite a very challenging environment, it’s inspiring to see many retailers remaining resilient and doing what they can to maximise online sales while physical stores remain closed. In addition, as we all spend more time at home, we’ve seen home subscription services, fresh food boxes and meal-kit services become a popular mainstay of life in lockdown.
“The start of Spring, the Government’s roadmap out of lockdown, the vaccine roll-out and the extension to the stamp duty holiday are contributing to a lift in the nation’s spirits. With consumers generally feeling more optimistic, there is a strong indication of a more prosperous period to come as the long-awaited recovery and life after lockdown begins.”
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