In 2022, there was a significant rise in fashion and beauty spending as consumers emerged from the pandemic and focused on enhancing their appearance. According to Barclaycard, consumer spending in the UK, which includes retail and other expenses, increased by 10.6% in 2022 compared to 5.9% the previous year. However, this increase was largely driven by inflation, resulting in minimal progress for consumers. In response, consumers adapted their spending habits by opting for smaller basket sizes to better manage their budgets.
Barclaycard’s 2022 trends report highlighted the return of face-to-face retail spending as a key trend. Face-to-face retail spending saw a growth rate of 8.3%, while online retail spending declined by 12.2%. Although there was an increase in the total number of card transactions within the retail sector, the total amount spent at retail alone actually decreased by 0.8%.
The report also revealed that consumers were investing more in their appearances as working from home decreased and social activities resumed. This led to noticeable growth in the pharmacy, health, and beauty retail sectors, as well as clothing and department stores. These sectors saw growth rates of 14.7%, 11.2%, and 7.4% respectively. Consumers were updating their looks and wardrobes by purchasing new makeup, clothing, and accessories.
Interestingly, men were found to be more eager to upgrade their looks compared to women. Men spent 12.2% more on clothing throughout the year, while women spent 11%. In the pharmacy, health, and beauty sector, men’s spending increased by 15.9% compared to 14.5% for women.
The uptick in fashion and beauty spending can be attributed to the resurgence of social spending, such as going out and going on holidays. Consequently, there was higher spending on items like partywear, suits, and swimwear. Barclaycard’s data also showed a decrease in spend at general retailers and catalogues by 9.9%, while department store spend rose by 7.4%. Additionally, discount store spend decreased by 2.7% and clothing spend rose by 11.2%. Transactions in the clothing sector expanded by 14.7%. The pharmacy, health, and beauty sector also saw a rise of 18.3% in transactions alongside the 11.2% increase in spending. Lastly, sports and outdoor spend decreased by 2.8%, while transactions in this sector grew by 4%.
Overall, the increase in fashion and beauty spending in 2022 reflects the population’s desire to invest in their appearance as they adjust to post-pandemic life. With the return of social activities, consumers are more motivated to update their looks and revamp their wardrobes. This trend is particularly evident among men, who are keen on upgrading their personal style. As the world moves forward from the challenges of the previous year, the fashion and beauty industry can expect continued growth and increased consumer interest.
Useful links:
– How beauty brands capitalized on the return of luxury
– Consumer spending in the clothing retail sector in the UK by gender
