Other sectors saw a significant increase in spending
According to a Barclaycard data report, UK consumer spending in January felt its sharpest decline since May.
Compared to one year ago in January 2020, this is a 16.3% drop.
Bars/pubs, restaurants and airlines all experienced dramatic falls of 93.7%, 84.2% and 81.6%, respectively. Expenses on essential items fell 24.2% as physical stores were forced to close due to restrictions.
Raheel Ahmed, Barclays’ director of consumer products, noted that it is a common theme in the industry that has experienced the biggest fall in consumer spending.
“We’ve seen certain sectors struggle as the impacts of the latest lockdown began to fall victim to the UK’s physical facilities being forced to close. Last month’s hopes for the travel sector The faint hopes also seem to be stagnant as tighter border controls have fallen than we saw bookings drop,” Ahmed said.
Other sectors were better in January as their business models adapted to widespread lockdowns.
In take-out, spending increased by 32.6%, while online retail increased by 73.2%. Expenses on essential items increased by 3.9% compared to a year ago, with demand for online shopping delivery spikes, and spending increased by 126.8%.
Raheel Ahmed outlined the willingness to spend within a sector where the British can do so.
“But on a more positive note, the demand for home delivery continues to grow, and so is its surge in many online categories. From meal kits and subscription services to online grocery shopping, Brits are the first to start. “We continue to see record highs in spending on takeout and fast food,” Ahmed said.
Barclycard collects this data by tracking up to 50% of UK credit and debit card transactions.
