Lockdown Impact on Essentials, Non-Essentials, and Future Shopping Habits

  • Consumer spending contracted by 36.5% year-on-year in April
  • Spending on essential items declined by 7.5% due to a 58.9% reduction in fuel spend
  • Supermarkets saw a 14.3% increase as people shopped more and cooked at home
  • Non-essential spending fell by 47.7%, with travel down 86.8%
  • Food and drink specialist stores experienced 37.7% growth
  • UK adults plan to spend more in local retailers post-lockdown
  • 88% of UK adults have saved money on everyday expenses during lockdown
  • Confidence in household finances remains resilient at 70%, but confidence in the UK economy dropped to a six-year low
  • Job security confidence fell to its lowest level in 17 months
  • Consumer focus shifted to online, takeaways and digital subscriptions during lockdown

Consumer spending in the UK dropped by 36.5% year-on-year in April, according to Barclaycard data. Spending on essential items decreased by 7.5%, primarily due to a 58.9% reduction in fuel expenditure. Supermarkets experienced a 14.3% increase as people bought more groceries and cooked at home. Non-essential spending fell by 47.7%, with travel seeing an 86.8% decline as many stopped commuting. Food and drink specialist stores saw a 37.7% growth. UK adults plan to spend more in local retailers like butchers, cafés, and farmer’s markets post-lockdown. Almost nine in ten (88%) have saved on everyday expenses since the lockdown began. Despite resilient household finances confidence (70%, 85% for those aged 55+), overall UK economy confidence hit a six-year low at 20%. Job security confidence dropped to a 17-month low. Esme Harwood, Barclaycard director, noted the challenging retail environment but highlighted bright spots like online and DIY.

Factuality Level: 8
Factuality Justification: The article provides accurate information from Barclaycard’s research on consumer spending during the pandemic and its impact on different sectors. It also includes relevant quotes from Esme Harwood, director at Barclaycard, to provide insights into consumer behavior and future trends.
Noise Level: 4
Noise Justification: The article provides relevant information about the impact of the pandemic on consumer spending and offers some insights into changes in consumer behavior during the lockdown. It also includes data from a reputable source (Barclaycard) to support its claims. However, it could benefit from more analysis or context on the long-term implications of these trends and potential solutions for businesses affected by the decline in spending.
Financial Relevance: Yes
Financial Markets Impacted: Consumer spending, essential items, non-essentials, and job security
Financial Rating Justification: The article discusses changes in consumer spending patterns during the lockdown, which can impact various sectors of the economy and may affect job security. It also mentions savings by UK adults and their preferences for local retailers post-lockdown.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text

Reported publicly: www.retailsector.co.uk