Summer spending! Consumer spending in August 2018.
Data produced by Barclaycard who process almost half of all the UK’s credit and debit card transaction, shows that UK consumer spending rose by 4.5% in August 2018. Here are the main highlights:
- Essential spending increased by 6.9% year on year, This includes a 5% increase for supermarkets.
- Fuel prices continue to be high which led to a 10.9% increase in this area.
- Non-essential spending was up 3.4% showing that the UK public are prioritising essentials, but there does seem to be some room for discretionary spending.
- Spending on experiences continues to improve, this area saw an increase of 10.3%.
- As expected online shopping continues to increase at are much faster than in-store.
However not all categories fared well. Consumers have not yet hit the high streets (or online) for their autumn and winter wardrobes. As a whole spending on clothes was just over half a percent, and both women’s and men’s clothes declining (0.9% and 0.3% respectively).
Are people cutting back?
After a summer of football, heatwaves, and spending, the sentiment is shifting back to frugality. 44% of consumers say they will be cutting back on treats, and 39% say they will spend less on entertainment.
Some of this sentiment will be down to uncertainty in the economy. Almost 60% are concerned about rising inflation and a similar percentage are concerned about increasing energy prices – which is good news for energy switching firms of course!
How did our customer categories fare?
|Category||Year on Year Growth|
|Floor Covering Stores||-1.60%||15.50%||-3.30%|
Outside of entertainment and essential it seems to be a tough market. It is more important than ever to review your strategy, and take action. Some important questions to as yourself are:
- What is your online strategy? is it sufficient to compete with new players and your competition? and how does it fit into your overall strategy?
- How is your business innovating and trying to drive your industry forward? Being at the forefront of this makes it harder for new players to disrupt your market.
- If experience spending is being prioritises how are planning to tap into this?
- What innovative sales and marketing activities are you undertaking?
Click here to read the Barclaycard consumer spending report for August 2018.