Talking Retail Grocery and product news for independent retailers
Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, shows that spending on essential items grew 4.5% year-on-year, boosted by a 14.7% rise in supermarket shopping overall, and online grocery spend surging 88%.
However, spend on fuel declined 20.7% as tighter restrictions saw many Brits cancel plans to visit loved ones over the Christmas period.
While in-store retail spending fell 8.3%, the significant shift to online shopping continued, with online retail rising by 52.2% – accounting for 46.8% of all retail spending in December.
The research also shows shops in the local community continued to enjoy a boost, with specialist food and drink retailers such as butchers, bakeries, and off licenses recording a 43.7% increase.
The continued restrictions across the UK mean that Brits’ confidence in the UK economy remains low at 22% – almost 20% lower than at the same time last year. However, consumer confidence in household finances has held up at 68%.
Raheel Ahmed, head of consumer products, said: “Changing restrictions continue to have an impact on our spending habits – which was particularly acute across the high street and hospitality sectors in December, with restaurants, pubs and bars hardest hit during a low-key festive season in the majority of the UK. As a result of further restrictions, online grocery spend surged and fuel declined as the majority cancelled their plans and stayed home for the holidays.
“Additionally, many still continued to support their local shops where possible, spending more time in their local community. Small businesses have continued to remain agile to these changing consumer habits – with many going online for the first time. From dog walking services to subscriptions of weekly meal kits, small businesses are exploring new ways to reach their customer base.”
Ahmed added: “With the latest government guidance to stay at home and a vaccine roll-out on the horizon, we are all hopeful of a brighter and more prosperous year ahead. Yet for now, the reality of lockdown life remains and it’s once more a hugely challenging time for high-street retailers as well as the hospitality, leisure and travel industries.”
