Consumer card spending fell -0.6 per cent year-on-year in June – the first decline since February 2021 and significantly lower than the latest CPIH inflation rate of 2.8 per cent – as colder weather early in the month hampered spending.
The cold in early June 2024, in contrast to 2023’s sunshine and warm weather, meant that retail spending fell by -2.6 per cent – its most significant year-on-year drop since June 2022 (-3.8 per cent). High-street cutbacks meant in-store spending (excluding groceries) was down -5.1 per cent, while clothing sales declined -7.7 per cent year-on-year.
Insperiences” receive ‘Bridgerton’ boost, while The Euros prop up pubs
The gloomy weather did result in a positive month for “insperiences” (at-home experiences), up 5.3 per cent overall, helped by takeaways and fast food returning to growth (4.4 per cent) after declining in May (-0.2 per cent). Meanwhile, spending on digital content and subscriptions rose by 9.2 per cent, due to “streamflation” (the rising price of streaming subscriptions) taking effect, combined with the popularity of new series such as ‘House of the Dragon’ and ‘Bridgerton’.
Pubs, bars and clubs saw modest year-on-year growth in June (up 0.5 per cent), with the influx of sports fans watching The Euros outweighing the bad weather, and keeping the category on par with its strong performance in June last year.
However it was a tougher month for restaurants, which declined -11.5 per cent year-on-year, although this was an improvement on last month (-15.7 per cent), reflecting the selective approach cost-conscious consumers are taking to discretionary spending; over half (52 per cent) of those cutting back on non-essential spending are choosing to spend less on eating out at restaurants.
Brits still jet-setting and joy-seeking
The entertainment and travel sectors also enjoyed growth in June, mirroring new data from Barclays’ ‘All to play for: winning with experience’ report which revealed that experiences like travel and live entertainment are now taking up a greater share of Brits’ discretionary spending.
Entertainment rose 6.1 per cent, while cinemas enjoyed their busiest day of the year so far on 15th June, up 122.4 per cent in comparison to the average day in 2024, after the release of ‘Inside Out 2’ . Meanwhile, spending on holidays abroad continued to grow, with travel agents and airlines up 5.5 per cent and 3.2 per cent respectively, as some holidaymakers settled the final costs for their getaways. Overseas travel outpaced staycations, demonstrated by domestic hotels, resorts and accommodation recording a decline of -1.8 per cent.
This comes as 37 per cent of Brits say that when they go on holiday, they tend to spend more than they had planned to, while a fifth (20 per cent) adopt a “treat yourself” attitude when travelling.
Consistent consumer confidence
Encouragingly, while Brits maintain a steady approach to managing their budgets, consumer confidence showed signs of recovery compared to the previous month. Consumers feel more optimistic about their ability to live within their means (up to 73 per cent) and spend more on non-essential items (56 per cent), while confidence in job security increased four percentage points to 49 per cent. Meanwhile, concerns about inflation fell by one percentage point, to 85 per cent, while concerns about the rising cost of fuel eased, as spending on fuel declined -3.2 per cent.
Karen Johnson, Head of Retail at Barclays, said:
“Once again, our data demonstrates the undeniable impact that unseasonable weather can have on consumer spending. The sluggish demand at the start of June even caused some fashion brands to adjust their sales schedules, although I was pleased to see that the situation has since improved with the arrival of sunnier days.
“However, the dreariness didn’t dampen spending across the board, with takeaways, digital content and entertainment all benefitting from people sheltering at home, and hopefully we’ll see sustained interest in The Euros – regardless of England’s fate – and sunnier weather driving people to their local in July.”
RETAIL AND HOSPITALITY SPEND SET TO REACH £491.4M DURING EURO 2024 SEMI-FINAL STAGE
With England through after a nail biting round the 2024 Men’s Euros Semi-Final stage is predicted to bring in a combined £491.4m for retail and hospitality venues across the nation, a new report reveals.
The Men’s UEFA Euro 2024 Spending Report by discount site VoucherCodes.co.uk, expects 26m consumers to tune into the Semi-Finals of the tournament, either at home or at pubs, bars, and restaurants as they cheer on Three Lions in their quest to the final.
Of the total viewers, 19m are opting to watch one or more of the games from the comfort of their own home resulting in a £352.7m boost to retailers. Food and drinks sales will account for the vast majority of total retail sales, with an estimated £259.5m to be spent in this category on food and snacks such as pizzas, burgers, chicken wings, and crisps.
Total retail spend by item category during Semi-Finals
Whilst retailers are still expected to receive the largest boost, hospitality venues are set to welcome an additional 15.7m visitors during the Semi-Finals, generating £138.7m worth of sales. With supporters looking to soak up the atmosphere at their local, an estimated £78.1m will be spent on drinks and £60.6m on food.
A whopping 15.4m pints are also set to be consumed during England’s Semi-Final clash against The Netherlands alone, with 1.3m fans expected to flock to fan zones to watch the game.
England v The Netherlands, Wednesday 10th July
When it comes to the England v The Netherlands specifically retailers and hospitality venues are predicted to earn £358.4m from the knockout fixture as 26.8m fans tune in.
With 17.5m spectators set to watch England’s big game from home, overall retail sales are expected to reach £256.5m, comprised primarily of £186.7m worth of food and drink sales.
Hospitality venues are set to bring in £101.9m, including £59.3m in drink sales, with a further £42.6m being generated through food sales during the game.
Michael Brandy, Senior Commercial Director at VoucherCodes.co.uk commented: “It’s encouraging to see fan support for the Three Lions is staying high as the team make their way to the Semi-Finals. With 15.7m fans heading to their local hospitality venue to tune into at least one of the two games, pubs, bars and fan zones can expect to score a healthy boost in sales.
“There are plenty of ways hospitality venues can drum up further business as we enter the Semi-Finals of the tournament. Whether it’s offering pre-booked VIP seating, discounts on food for large groups or setting up screens so the matches can be watched outside in the beer garden, it’s important venues offer value for money to encourage consumers to come back time and time again.”
