UK Consumer Spending Report

Hospitality and Leisure

Bars, Pubs & Clubs and Cinemas receive spend boost

Spend on overall Eating & Drinking grew by 2.6% in March 2024, an increase compared to the year-on-year growth in February 2024 (2.1%). This uplift was driven by a rise in spend at Bars, Pubs & Clubs, at 3.2% in March 2024 compared to 1.1% in February 2024, as consumers gathered to watch Six Nations and FA Cup fixtures, and to celebrate St Patrick’s Day.

However, spend at Restaurants decreased by -12.6% in March 2024 versus this time last year, although this was a slight improvement compared to the growth in February 2024 (-13.4%). This comes as 45% of consumers say they are continuing to rein in discretionary spending, with nearly half of these consumers (47%) spending less on dining out.**

Meanwhile, cinemas enjoyed their busiest day of the year so far on Saturday March 2nd, right after the UK release date for ‘Dune: Part Two’, 2024’s highest grossing film, with spending 87% higher compared to the average across the month.

Spend at Travel Agents grew by 7.1% in March 2024, the lowest year-on-year growth in this category since September 2023 (7.1%). However, this is likely due to consumers already having booked their travels ahead of the upcoming holidays.

Meanwhile, spend at Hotels, Resorts & Accommodation increased by 1.0% in March 2024, the highest year-on-year growth since December 2023 (4.5%), likely due to consumers booking staycations for the Easter Weekend or upcoming Bank Holidays.

Retail

Supermarket spending continues to slows down as inflation further drops

Spend growth at Supermarkets and Food & Drink Specialists increased in March 2024, by 2.8% and 1.4% respectively, however this is lower than the year-on-year growth seen in February 2024, at 3.9% and 2.7% respectively. This comes as food price inflation dropped to its lowest level (5.0%) since January 2022 (4.4%).*

Despite this, concerns about general inflation have risen to 87%, reversing last month’s drop to 84%, which was the lowest level since Barclays began tracking this metric in December 2021. Furthermore, concerns around shrinkflation are also creeping up, reaching 80% for the first time since September 2023. In addition, almost 38% of consumers are cutting down on supermarket impulse buys, such as buying chocolate at the checkout. **

As such, 65% of consumers are still looking for ways to get more value from, or to reduce the cost of their weekly shop, with 57% of these consumers buying more items that are discounted, and 27% stockpiling their favourite or essential products when they are on offer.

The weather continued to impact high-street spending in March, with spend on face-to-face retail (excl. grocery shopping) and Clothing declining by -2.1% and -1.8% respectively compared to this time last year, as consumers sheltered from the spring showers.

The slowdown in discretionary spending can also be attributed to the rise of the “no-spend” challenge, which involves consumers refraining from making non-essential purchases, such as clothes, and instead prioritising essentials. 23% of consumers say that they have participated in, or would consider participating in, a “no-spend” challenge.**