Supermarket shopping grew 12.9% in February – the smallest uplift in the category since February 2020 – as rising living costs continued to take effect, new research reveals.
Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, shows rising costs have led to 59% of Brits seeking greater value for money to help reduce the cost of their weekly shop. Almost half of these shoppers (45%) are buying budget or own-brand goods over branded goods in supermarkets, while 39% are using vouchers or loyalty points to obtain discounts.
The data shows that spending on essential items rose 12.0% in February. This increase was largely driven by an 11.2% rise in spend on fuel, likely due to climbing prices at the pump, as well as the easing of work-from-home guidance encouraging more Brits to commute.
In addition, spending on non-essential items saw strong growth, as Brits spent more on discretionary items, holidays, and experiences following the easing of restrictions.
José Carvalho, Head of Consumer Products at Barclaycard, said: “The strong uplifts across both retail and hospitality show that the nation is keen to make the most of life following the easing of Plan B restrictions, with many Brits still purchasing treats to give themselves a boost, and making social and holiday plans for the year ahead.
“As inflation starts to have an impact on consumer confidence, we’re seeing a shift in spending habits as Brits seek more value from their purchases, particularly on supermarket shopping, which saw its smallest growth since February 2020. With energy prices rising at the start of April, we will be watching how these price-conscious behaviours evolve over the coming months.”
