Card spending on essential items grew 18.1 per cent in March, largely driven by increasing fuel and food prices, as shoppers bought in bulk to save money, with many stocking up on non-perishable items and household supplies, states a recent report.
As per data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, spending on essential items grew 18.1 per cent in March, the highest uplift since September 2021. This was largely driven by spend on fuel, which soared 26.1 per cent as prices at the pump continued to climb.
Overall, the card spending grew 17.7 per cent in March compared to the same period in 2019, largely driven by spend on fuel, which soared 26.1 per cent as prices at the pump continued to climb. Spending on essentials was also boosted by a demand for convenience and the popularity of local shopping.
Supermarkets’ spending saw a 16.9 per cent jump – higher than the growth recorded in both January (15.5 per cent) and February (16.0 per cent) this year – likely due to inflation and rising food prices. Feeling the pinch, 58 per cent of shoppers are looking for ways to stretch their weekly grocery budget, 52 per cent of this group are cutting down on luxuries, and 48 per cent are switching from branded to budget or own-branded goods.
Many are also buying in bulk to offset increasing prices and guarantee availability. More than a third (35 per cent) admit to stocking up on everyday items such as tinned and dried products (both 13 per cent), household supplies (11 per cent), and tea-coffee (10 per cent).
In response to rising petrol and diesel prices, two fifths of drivers (41 per cent) say they are changing the way they travel. Of these, over half (54 per cent) are walking more often, almost two-fifths (38 per cent) are cutting back on long car journeys, and 22 per cent are opting to cycle instead.
Hospitality and leisure saw particularly strong growth, rising 18.3 per cent, boosted by a 41.7 per cent surge in spending at bars, pubs and clubs, as the all remaining social distancing restrictions ended at the end of February.
José Carvalho, Head of Consumer Products at Barclaycard, said, “Many sectors saw strong growth in March compared to the same period in 2019, as sunnier weather encouraged Brits to socialise at pubs and bars, book staycations and update their wardrobes for spring and summer.
“However, rising fuel prices and household bills are clearly starting to influence consumer behaviour, with many Brits changing their travel and shopping habits to save money. While this may dampen growth in the months ahead, we shouldn’t overlook the expected heatwave later in April, and the fast-approaching Easter holidays, both of which are likely to boost non-essential spending.”
