Growth in supermarket spending increased to 5.2%, up from 2.8% in December, new research reveals.
The data from Barclays that as concerns around rising food prices remains high (87%), two thirds (67%) of consumers are continuing to look for ways to reduce the cost of, or get more value from, their weekly shop.
Of these consumers, 47% are using loyalty schemes or vouchers to get money off shopping, 39% are shopping at multiple supermarkets to source a range of deals, while a similar proportion are buying discounted products nearing expiration, or “yellow sticker” items (38%).
In addition, almost a fifth are cutting back on buying meat, fish or other animal products as well as alcohol (both 18%), while 16% have even been buying discounted festive food to save money.
Supermarket savings are also expected to impact Valentine’s Day celebrations, especially when it comes to gifts and food. The data reveals half of those intending to buy flowers this year say they will save money by buying them from the supermarket instead of a florist. Similarly, a supermarket meal-deal is on the menu for just over two in five of those making a home-cooked meal.
Other cost-saving strategies include spending the evening at home instead of going out (21%), setting a spending limit for gifts (18%), and forgoing presents altogether (16%).
Even with these cutbacks, Brits expect to spend slightly more this Valentine’s Day compared to last year (up £6.40), likely due to rising prices. In total, the average person expects to spend £80.30, with men expecting to spend £96.70 compared to £60.70 for women.
Overall consumer card spending grew 3.1% year-on-year in January, up from December’s growth of 2.3%, the data shows.
The research reveals the nation is feeling more optimistic overall, with consumers’ confidence in both their household finances and ability to live within their means reaching its highest point since November 2021.
Karen Johnson, Head of Retail at Barclays, said: “It’s encouraging that confidence is improving, with consumers remaining resilient and finding savvy ways to manage their finances.”
Jack Meaning, Chief UK Economist at Barclays, added: “Spending looks to be on an upward trajectory, set to increase more than inflation in the coming months, which will be an important milestone for consumers and businesses who were squeezed throughout 2023.”
