Spending slipped ahead of lockdown but takeaways and web services stayed popular
Overall consumer spending in October fell by 0.1 per cent immediately before the second national lockdown was introduced in England, but people continued to spend money on takeaways and online box sets.
Data from Barclaycard found spending on essential items grew 4.2 per cent year-on-year, steadied by a 13.9 per cent rise in supermarket expenditure.
Spending on non-essential items declined 1.7 per cent, compared to the 0.6 per cent growth seen in September. Clothing fell 2.7 per cent overall, though a 20.6 per cent growth was seen in online clothing as the nation chose to shop from home instead of venturing to the high street. Spending at department stores also contracted by 9.9 per cent, down from the smaller 0.2 per cent decline seen in September.
Home deliveries proved popular as online supermarket expenditure saw 94.4 per cent growth, accounting for 13.7 per cent of total supermarket spending compared to 13.0 per cent in September. This comes as a third of Brits say they are stockpiling essentials in preparation for potential shortages.
Boosted by early Christmas shoppers, general retailers and catalogues saw growth of 50.0 per cent in October. Food and drink specialist stores, including butchers and greengrocers, also rose by 50.7 per cent as nearly half of shoppers looked to support local businesses.
Overall online transactions grew by 29 per cent in October, accounting for 45.7 per cent of all retail spend this month – a steady rise from August (44 per cent) and September (43.4 per cent).
Spend on digital content saw its highest uplift (32.3 per cent) since the first national lockdown eased in July, while takeaways stayed strong at 18.3 per cent growth.
Takeaways and digital to stay popular
The restrictions are impacting consumer optimism. Household confidence dropped to 67 per cent – a level not seen since May (also 67 per cent) and down from 70 per cent last month. Confidence in the UK economy also remains low (22 per cent), with less than half as many over-55’s (15 per cent) as 18-34-year-olds (34 per cent) feeling confident.
Barclaycard head of consumer products Raheel Ahmed said: “As Brits once again adjust to tighter restrictions, it’s no surprise that the digital habits adopted earlier this year are enduring.
“As we enter another period of lockdown in England and further restrictions across the UK, this stay-at-and home mentality is likely to persist, as is the popularity of takeaways and digital subscriptions – helped along by the colder weather and darker evenings.”
England entered a four week-long national lockdown on 5 November following a rise in coronavirus cases and deaths.