The recent data from Barclaycard reveals the significant impact of shuttered stores on consumer fashion spending last month. The company reported a substantial 16.3% year-on-year decrease in consumer spending, which is the largest decline since May 2020. The closure of stores in January had a particularly negative effect on fashion retail, with spending on non-essential items dropping by a staggering 24.2%.
While essential items saw a modest increase in spending by 3.9%, department stores and clothing stores experienced significant declines of 36.8% and 25%, respectively. This trend was evident in the decreased value and number of transactions in these sectors. However, discount stores bucked the trend with an 18.1% rise in spending despite a 6.2% decrease in transaction volume.
Barclaycard noted a surge in online retail of 73.2% in January, with online shopping accounting for 54.9% of all retail spend. Specialist retailers like stationery and sports & outdoor shops saw strong growth online at 87.7%. The closure of schools and gyms contributed to this increase as people purchased equipment for home-schooling and fitness activities.
The data also highlighted significant declines in spending on travel, bars/pubs, and restaurants, with drops of over 80%. However, it’s not just social restrictions impacting consumer spending. Job security concerns were identified as a contributing factor, with only 40% of Britons expressing confidence in their job security. This represents a 10% decrease from the previous year and is the lowest level recorded in over a year.
Overall, the closure of stores and restrictions on social activities have significantly affected consumer spending patterns. Online retail has emerged as a crucial avenue for shoppers, with the challenges brought about by the pandemic influencing consumer confidence and spending behavior in the UK.
For more insights into the impact of COVID-19 on consumer spending, you can visit Barclaycard’s official website. Additionally, to stay updated on retail trends and market analysis, you can explore resources from Retail Dive.
