Consumer Card Spending Stalled In December

• Entertainment enjoyed another “Wicked” performance, with cinemas up 52.1 per cent thanks festive trips to the big screen
  
  
• Both restaurants and pubs, bars and clubs saw modest increases, as Brits limited socialising amid the “quad-demic”
  
  
• Seasonal sales boosted several retail subcategories including pharmacy, health & beauty, garden centres and furniture stores

• Travel continued its strong performance (up 4.7 per cent) as Brits booked travel for the year ahead, and jetted off on last-minute ski trips and sunny escapes
  
  
• The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending

Consumer card spending growth remained flat in December, at 0.0 per cent year-on-year – significantly lower than the latest CPIH inflation rate of 3.5 per cent. Cutbacks in essential categories were offset by growth in discretionary spending, supported by another “Wicked” performance from entertainment (up 6.0 per cent) and Brits planning holidays for 2025, boosting travel 4.7 per cent. 

Essential spend dropped by -3.0 per cent in December, as lower petrol prices again impacted fuel spending (-11.6 per cent) and Brits made cutbacks while facing inflation concerns; nine in 10 adults said they were concerned about both rising food prices (86 per cent) and household bills (87 per cent).

This chimes with the slowdown in supermarket spending (-2.0 per cent), as two in three (64 per cent) Brits say they are looking for ways to get more value from their weekly shop or reduce how much they spend. 

Of those looking for ways to save, 55 per cent are looking out for loyalty scheme discounts and deals, 51 per cent are using vouchers or loyalty points to get money off their shopping, and half (50 per cent) are also buying more discounted items. 

Treats bring joy to cost-conscious Brits

Almost half (48 per cent) of consumers said they are planning to cut down on discretionary spending, however two in five Brits (40 per cent) said they were treating themselves and their loved ones in December, despite the impact on their household finances. 

The overall retail sector slipped -0.2 per cent in the month, however, in the wake of Black Friday and Cyber Monday, gift shopping and seasonal discounts spurred growth of 1.6 per cent at general retailers, following a -1.7 per cent decline in November. Pharmacy, health & beauty finished the year on a high, having performed strongly throughout all of 2024, boasting 5.8 per cent growth.

Growth in online shopping outpaced in-person sales, with online retail (excluding groceries) up 2.6 per cent. In comparison, face-to-face retail (excluding groceries) declined -1.2 per cent. One in five (17 per cent) Brits reported shopping online more frequently in the month, opting to purchase Christmas gifts from the comfort of their homes.  

Home comforts

For house-proud Brits gearing up to start the New Year afresh, spending at garden centres (3.1 per cent) blossomed in December, as seasonal discounts encouraged people to invest in small “tweakments” and outdoor decorations for their gardens. Christmas tree purchases also likely contributed to this boost.

Furniture stores also saw an increase (1.7 per cent), the category’s highest level of growth since March 2022, as Brits shopped for gifts and home improvements ahead of Christmas. 

Wicked continues to defy expectations, while Brits cosy up for the small screen

Entertainment spending (6.0 per cent) continued its strong run, with pantomimes, ballets, and Christmas concerts drawing in audiences throughout December as Brits continued to prioritise memorable experiences that bring them joy. Box-office phenomenon Wicked continued to ‘defy’ expectations and coax Brits out of their houses to the silver screen, with cinemas proving ‘popular’, up 52.1 per cent. 

The colder, stormy weather seen across the country in December further encouraged Brits to swap the high street for the small screen, as TV hits Black Doves and The Day of the Jackal delivered strong growth for Digital Content & Subscriptions (7.5 per cent). This comes as a fifth (18 per cent) of Brits reported using their subscriptions more than usual amidst an influx of new content. 

Trimmed-down December impacts restaurants and pubs

For Brits looking for ways to make savings, half (49 per cent) said they plan to cut back on eating out in restaurants, while 38 per cent said they were looking to reduce how much they spend on drinks in bars, pubs and clubs. This, combined with “quad-demic” illnesses taking hold, meant both categories saw modest growth in December, with Restaurants, Cafes & Bakeries up just 1.1 per cent, while spending at Pubs, Bars & Clubs climbed 1.3 per cent, down from 2.1 per cent and 3.5 per cent respectively in November. 

New year, new habits

Looking ahead, 35 per cent of Brits plan to participate in ‘Dry January’ this year. Of this group, two fifths (40 per cent) are doing so because they are trying to be healthier, while one in five (22 per cent) want to reduce their spending on alcohol. Those taking part anticipate saving £57.70 each on average.

One in four (24 per cent) are planning to give ‘Veganuary’ a go in 2025, with health once again emerging as the top motivating factor, chosen by 34 per cent of those participating. One in four (26 per cent) say they’re trying to eat fewer processed foods. 

Health and fitness is high on the agenda for those making New Years resolutions more broadly, chosen 31 per cent of this group. Financial wellbeing is also a clear priority; over one in four (27 per cent) of those setting goals for 2025 want to save more each month, while 24 per cent plan to cut back on takeaways. 

Exotic getaways for 2025

Fed up with the dreary UK weather, the travel sector continued its strong performance in December (4.7 per cent) as Brits booked international trips to sunnier climes and made the most of the early arrival of fresh powder at ski resorts across Europe. Travel agents saw a 7.5 per cent increase, potentially helped by ‘Travel Tuesday’ deals in late November. Three quarters (74 per cent) of consumers plan to travel in 2025, suggesting this momentum will continue into the new year. 

Karen Johnson, Head of Retail at Barclays, said: “Consumers demonstrated their ability to carefully manage their money once again in December, finding ways to save while still sprinkling in some cheer, setting aside funds to treats themselves and loved ones over the festive period.

“Brits are also planning to prioritise memorable moments in 2025, with travel emerging as a clear spending priority. Health is also held in high regard; those making New Year’s resolutions will cut back on pub trips, but spend on healthier alternatives to nights out.” 

Overall growth figures

Source : Barclays

Image : Smileus / iStock / 624124526

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