Consumers remaining loyal to local c-stores

Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that this was bolstered by a 24.5% rise in supermarket spend – which increased to 27.0% in the week preceding the VE Day weekend as Brits made the most of the sunny bank holiday. The upsurge in supermarket expenditure helped to offset a 49.7% fall in fuel.

In an ongoing trend, consumers have remained loyal to local specialist food and drink outlets, such as greengrocers and independent convenience stores, with the category seeing a growth of 42.5% – the highest increase since restrictions were introduced.

However, overall consumer spending contracted 26.7% year-on-year in May.

The research reveals that overall confidence in the UK economy remains low – indicating that the road to recovery may be a long one. Just 20% of UK adults feel positive, though those aged 18-34 are noticeably more upbeat than those aged over 35.

Esme Harwood, director at Barclaycard, said: “While the restrictions continue to have a significant impact there are glimmers of hope. We are seeing certain sectors start to increase sales as the climate eases and they adapt. It may take some time to recover from the economic impact of coronavirus but household confidence remains high and there is a strong desire among consumers to support businesses.

“Other encouraging signs are also emerging. After weeks of isolating Brits are understandably keen to enjoy the great outdoors. There’s a positive shift for the cafes, pubs and restaurants beginning to open up again, as well as the retailers who stock essentials for barbecues and other socially distanced gatherings.”