The latest monthly spending review conducted by Barclaycard revealed a 2.5% increase in UK consumer spending in April. Despite this overall growth, the fashion sector struggled to attract consumers, experiencing a notable 5.2% decline in spending. In contrast, the beauty sector continued to flourish, showcasing strong consumer interest and spending patterns.
April saw consumers flocking to outdoor activities such as dining out and tending to their gardens, taking advantage of the warmer weather. However, the same enthusiasm was not reflected in fashion retail, leading to a substantial decrease in spending. Surprisingly, despite the decline in fashion sales, retailers refrained from heavy discounting, maintaining a flat year-on-year average transaction value.
The challenges faced by the fashion industry were mirrored across the retail sector, with discount stores, electronics stores, and department stores struggling to maintain sales. Excluding essential spending at supermarkets and petrol stations, non-essential spending only rose by 1.2%, falling below the inflation rate. Department stores saw a decline of up to 2%, potentially influenced by the struggles faced by major retailers like Debenhams and House of Fraser.
A closer look at the clothing sector revealed significant drops in various categories, such as family clothing, footwear, womenswear, and menswear. Sports shops and jewellers managed to fare better, while discount stores experienced a notable decline. However, gift shops saw a healthy increase in sales, and cosmetic stores stood out with a substantial 10.1% rise.
Interestingly, airline spending recorded a negative growth of -4.8%, marking a record low according to Barclaycard data. This could indicate a trend of consumers cutting back on larger purchases. Despite Brexit uncertainty looming, consumers reported no significant changes in their spending habits, with a growing percentage expressing confidence in the UK economy.
Barclaycard’s reliable data, derived from processing a significant portion of credit and debit card transactions in the UK, sheds light on consumer behavior amidst economic fluctuations. The spending review underscores the challenges faced by the fashion sector and the resilience displayed by the beauty industry.
To learn more about consumer spending trends, you can visit Barclaycard’s Consumer Spending Trends and for insights into economic fluctuations, check out Office for National Statistics: Economy.
