Consumer card spending grew 4% year-on-year in March, as Brits made further cutbacks to cope with the cost-of-living crunch, new research from Barclaycard reveals.
The data shows spending on groceries increased 7.1%, as 88% of shoppers say they are concerned about the impact of rising food prices on their household finances, and 62% are finding ways to reduce the cost of their weekly shop.
Over half (53%) of these value-seeking consumers are cutting down on luxuries or one-off treats for themselves, while a sizeable proportion are planning meals in advance to avoid wasting food, or using vouchers to get money off their grocery bill (both 38%).
Despite rising inflation elsewhere, spend on fuel saw a steep decline of -6.7%, because fuel prices this year are much lower than they were in March 2022.
As rising household bills continue to bite, over half (54%) of consumers say they are cutting down on discretionary spending, especially eating out at restaurants (62%) and new clothes and accessories (63%).
Increasing costs are also having a wider impact on hospitality spending: 36% of consumers are now cooking more at home instead of eating out, while 21% are avoiding social plans that involve eating out so they can save money.
In addition, Brits are demonstrating an encouraging return to traditional seasonal shopping trends – for example, home improvement and DIY stores enjoyed a month-on-month rise of 4.3%, as more consumers started to spruce up their homes and gardens in preparation for the warmer months.
Meanwhile, the ‘other specialist retailers’ category had its strongest performance since April 2022, thanks to increased spending at florists and card shops for Mother’s Day. However, this year’s figures have been inflated because Mother’s Day fell in a different reporting period last year, so the growth is unlikely to carry over into next month.
Looking ahead, 35% of Brits are planning on spending money on activities over the King’s Coronation Bank Holiday weekend in May, with 11% of consumers planning to purchase food and drink for hosting friends or family, and only 8% planning to spend money on drinks out at bars and pubs.
Esme Harwood, Director at Barclays, said: “The below-inflation rise in grocery spending shows that Brits are still trying their hardest to shave money off their weekly shop, as energy bills continue to rise. Cutbacks are also impacting restaurants, with a number of cash-strapped consumers even avoiding social plans that involve meals out.
Harwood added: “While predictions for the Coronation weekend are lacklustre, the results from Mother’s Day are more encouraging, demonstrating that Brits are still taking advantage of one-off moments to go out and celebrate.”
