According to the latest survey conducted by Barclaycard, clothing spending saw a decline in October amid the enforcement of local lockdowns and other restrictive measures in the UK. The survey unveiled a 0.1% year-on-year decrease in consumer spending, with a noticeable shift in shopping behavior as colder weather set in.
As the temperature dropped, more shoppers turned to online shopping rather than venturing out to physical stores. This move towards e-commerce was particularly evident in the fashion sector, which saw a 2.7% decrease in spending overall. However, online fashion shopping experienced a significant 20.6% surge, showcasing a shift in consumer preferences.
On the other hand, spending on essential items, especially in supermarkets, saw a substantial increase of 4.2%. Online grocery shopping nearly doubled compared to the previous year, with a third of consumers stocking up on goods in anticipation of potential shortages. Conversely, department stores faced a tough time with a 9.9% decrease in spending and a 14.1% drop in transactions.
The ongoing lockdown restrictions have taken a toll on consumer optimism, reflected in a drop in household confidence to 67% in October, down from 70% in September. Despite these challenges, early Christmas shoppers gave a boost to general retailers and catalogues with a 50% increase in spending. Moreover, pharmacy, health, and beauty product purchases rose by 7.3%, while the sports and outdoor sector saw a significant 20.2% surge in spending. Transactions at discount stores also spiked by 30.7%.
Looking ahead, Raheel Ahmed, Head of Consumer Products at Barclaycard, cautioned about the tough road ahead for brick-and-mortar retailers as the winter months approach with potentially stricter restrictions. With consumers increasingly turning to online shopping for their holiday purchases, the resilience of physical stores will face a true test in the upcoming months. The uncertainty surrounding the remainder of the year leaves the retail landscape unpredictable.
For more information, you can refer to the latest Barclaycard consumer spending survey report here. Additionally, to explore online shopping trends and consumer behavior, check out this insightful article here.
