Brits continue to look for ways to cut back on grocery spending in July though spending increased at food and drink specialists such as butchers and greengrocers, states a recent report, highlighting the effects of sunnier days in July on supermarket and grocery store spending.
According to the latest report on card spending by Barclays, growth at supermarkets remained flat year-on-year, though this was an improvement on June. Shoppers remain discerning when doing the weekly shop, as the majority (63 per cent) continue to look for ways to cut back on grocery spending.
Of those seeking savings half (47 per cent) are looking out for loyalty scheme discounts and deals, and buying budget, own-brand, on-offer or discounted products (all 45 per cent). As further evidence of cost-conscious behaviour, 37 per cent say coffee and drink subscriptions no longer offer the same value for money that they used to.
Confidence in the UK economy improved by five percentage points in July, rising to 32 per cent – the highest level since February 2022. However Brits’ confidence in their household finances and ability to live within their means both declined, at 65 per cent (down two percentage point) and 70 per cent (down three percentage points) respectively.
Overall, card spending fell slightly in July but showed a slight improvement as compared to June as the mixed weather across the month, combined with Brits’ selective discretionary spending, continued to pose challenges for retailers.
Karen Johnson, head of retail at Barclays, said, “Shoppers and retailers alike will be ready to see the end of the summer showers. It’s encouraging to see seasonal staples such as BBQ supplies, beauty buys and holiday planning delivering signals of steady recovery.
“Despite England losing in the nail-biting final of the Euros, UK hospitality emerged as a true winner, when the Euros delivered a boost for pubs, bars and clubs. With the final days of the Olympics in Paris, Taylor Swift’s return to a sold-out Wembley Stadium for her final UK Eras Tour dates, and a heatwave on the cards, we hope summer spending will finish strongly in August.”
Jack Meaning, chief UK economist at Barclays, said, ”While weather, sports events and concerts all look to have resulted in seasonal fluctuations, the bigger picture is that consumers are seeing their incomes and spending power rise and are becoming more confident in the overall economic outlook.
"This, coupled with the fact that the Bank of England has begun to reduce interest rates, should translate into stronger underlying spending growth, as we move through the second half of this year and into 2025.”
