Spending in 2023: Britons spend on Taylor Swift however scrimp on garments

Britons splashed out on cinema journeys, Taylor Swift tickets and holidays overseas in 2023 – however we reduce down spending on new garments, consuming out and residential enhancements, recent knowledge reveals.

Barclays’ Consumer Spend Index reveals general card spending grew by 4.1 per cent throughout the yr – a stoop in comparison with 2022’s 10.6 per cent development.

While Britons reduce on new garments and consuming out, and sought out bargains on the grocery store, they elevated their spending on ‘moments of pleasure’, and shared experiences with household and mates. 

Money spent on holidays surged, with airways experiencing a 30.8 per cent enhance in card spend and journey brokers 10.4 per cent.

In November, a fifth (19 per cent) of shoppers stated they might be planning extra holidays in 2024 to make up for journeys missed throughout pandemic lockdowns.

Spending on leisure additionally noticed a notable spike in 2023, rising by 7.5 per cent in comparison with 2022.

This was boosted by ticket gross sales for main occasions together with the Eurovision Song Contest, Taylor Swift’s Eras tour, and Beyoncé’s Renaissance tour.

Blockbuster hits together with Barbie, Oppenheimer and Avatar: The Way of Water fuelled a 6.3 per cent enhance in spending on the cinema.

Britons additionally spent 5.9 per cent extra on their playing cards in pubs, bars and golf equipment. Barclays stated this was pushed by main occasions such because the King’s Coronation and Rugby World Cup – but additionally rising beer and alcohol costs.

Consumers offset this elevated spending on experiences by slicing again in different areas.

Barclays stated rising inflation and family payments have been liable for a fall in spending on garments, eating places and residential refurbishments, however that individuals continued to ‘prioritise moments of pleasure and shared experiences, boosting journey, leisure, and pubs and bars’.

Restaurants have been among the many hardest hit, as card spending fell by 6.7 per cent in 2023 in comparison with 2022.

Card spending in clothes shops was down 0.5 per cent on the yr, which Barclays put right down to ‘rising prices and inconsistent climate’.

Spending on important objects grew 3.9 per cent in 2023 in comparison with 6.3 per cent final yr.

This was largely as a result of a ten.7 per cent drop in gasoline spending, as petrol costs decreased following a pointy peak brought on by Russia’s invasion of Ukraine in early 2022.

Esme Harwood, director at Barclays, stated: ‘Britons prioritised memorable experiences and shared moments with family members this yr, boosting pubs, journey and leisure. 

‘Many have been eager to make up for misplaced alternatives throughout the pandemic by reserving holidays, treating themselves to live performance tickets, and having fun with nights out with mates.

‘However, sure sectors noticed noticeable cutbacks. Restaurants and clothes shops have been hampered by the unpredictable climate, in addition to the affect of rising family payments on shoppers’ private funds.

‘Nonetheless, Brits’ confidence of their skill to spend inside their means has remained resilient, as they develop into extra resourceful and adept to find methods to stability their budgets.’

Here are among the different spending tendencies Barclays picked out in 2023.

Discounters drive grocery store spending development 

Discount supermarkets carried out notably effectively in 2023, as buyers battled in opposition to hovering meals costs.

Discount chains accounted for 15.5 per cent of all grocery spending. This was an all-time excessive, up from 14.5 per cent in 2022.

Shrinkflation, skimpflation… and drinkflation

Shrinkflation – when meals producers reduce the dimensions or weight of an merchandise, however nonetheless promote it for a similar value – proved to be a bugbear for grocery store buyers this yr.

In September, 76 per cent of shoppers stated they seen examples of shrinkflation, in accordance with Barclays. 

The worst culprits have been chocolate (the place shrinkflation was seen by 48 per cent of individuals), crisps (41 per cent), packs of biscuits (38 per cent) and snack bars (31 per cent).

In July, multiple in 5 Britons (22 per cent) additionally stated they seen that shrinkflation was additionally affecting alcoholic drinks.

They stated among the drinks they have been shopping for – corresponding to beers, spirits and tinned cocktails – have been changing into weaker or containing much less alcohol, but nonetheless costing the identical or extra.

Meanwhile, over half (52 per cent) of buyers in August seen that among the food and drinks merchandise they have been shopping for had been downgraded in high quality, but nonetheless value the identical or greater than they used to – a follow generally known as ‘skimpflation’.

These buyers had largely seen the declining high quality of clothes, chosen by 44 per cent, carefully adopted by rest room paper (43 per cent), and toiletries and cosmetics (37 per cent).

Big nights in

While Britons headed out to eating places much less, they spent extra on TV and takeaways at dwelling.

Money spent on digital content material and subscriptions went up 7.3 per cent yr on yr, and takeaways and quick meals rose by 8.1 per cent.

According to Barclays, this development was pushed by extra individuals tuning in to observe the sequence finales of standard reveals corresponding to Succession, Ted Lasso and The Crown, in addition to streaming companies rising their costs.

Furniture takes a again seat

During the pandemic lockdowns, many Britons threw themselves into sprucing up their properties. 

But that each one modified in 2023, as spending dwelling enhancements and DIY noticed a 4.7 per cent decline year-on-year, whereas furnishings shops noticed an identical drop of 5.2 per cent.

The lipstick impact

Pharmacy and well being and sweetness retailers additionally loved an uplift this yr, with card spending in these areas going up by 5.6 per cent.

According to Barclays, this was right down to the ‘lipstick impact,’ the place shoppers prioritise small indulgences, corresponding to cosmetics and self-care merchandise, over big-ticket objects during times of financial uncertainty.

It stated there was additionally elevated demand for make-up and skincare in comparison with final yr, as Britons went on holidays and commuted to the workplace extra recurrently.