Spending on groceries soared 9.5% year-on-year in June – the highest growth in the category in two years – yet still lower than the rate of food price inflation (18.4%), according to the Barclays Consumer Spending Index.
This comes as 67% of shoppers say they are looking for ways to reduce the cost of their weekly shop, with 32% of these consumers shopping at multiple supermarkets to source a range of deals, and 39% are buying more yellow sticker items.
In a further sign that Brits are seeking out value-for-money wherever possible, discount stores were up 8.8%, seeing their largest growth since April 2021.
In addition, 81% of consumers are worried about ‘shrinkflation’. In June, more Brits (70%) had noticed examples of shrinkflation than in May, particularly when buying chocolate (46%), crisps (42%), packs of biscuits (37%), and snack bars (32%).
The data shows that in response to shrinkflation, 29% of shoppers are buying their favourite products less often – only when they want to treat themselves – while 18% are switching to brands that haven’t changed the size of their products.
The figures reveals that spending at pubs, bars & clubs increased 8.4% – their biggest boost since January. This growth was driven by several factors, including the warm weather, rising beer and alcohol prices, Father’s Day celebrations, and the respite from industrial action in the transport sector.
In contrast, restaurants saw yet another month of decline (-8.2%), with 30% of Brits planning to spend less on eating out in order to offset rising household bills.
Instead, many are shifting their spending to specialist food and drink stores, including butchers and greengrocers, which enjoyed their highest increase (7.2%) since September 2021. This implies that Brits are choosing to spend more on high-quality ingredients for BBQs and premium home-cooked meals instead of eating out at restaurants.
Esme Harwood, Director at Barclays, said: “June saw Brits get into the swing of summer, bringing a welcome boost to several sun-starved categories.
“Pubs & bars benefitted from Brits soaking up the sunshine in beer gardens, while butchers and garden centres saw a jump thanks to the arrival of barbecue season.”
