Furniture and Sports Retailers See Declines as Essential Items and Fuel Spending Surge

  • Consumer card spending increased by 9.3% in May compared to 2021
  • Essential item spending rose by 4.8% and fuel spending surged 24.8% due to rising costs
  • Non-essential items saw a 11.6% increase, driven by hospitality and leisure
  • Supermarkets and specialist food stores experienced slight declines of -2.0% and -0.9% respectively
  • Furniture stores (-25.4%) and sports and outdoor retailers (-19.6%) saw year-on-year declines
  • Sports and outdoor retailers are up 4% month-on-month ahead of summer
  • Clothing retailers also experienced growth compared to April (8.6%)
  • Rising living costs led to a decline in digital content and subscription spending (-5.7%) with 18% cancelling TV or streaming services
  • 21% reviewing subscriptions, hoping for short-term boost from Jubilee Weekend and £400 energy bill discount

Consumer card spending increased by 9.3% in May compared to the same period in 2021, driven by rising costs of living and reduced demand due to pandemic restrictions on travel and hospitality. Essential items saw a 4.8% surge in spending, while non-essential items grew 11.6%, mainly fueled by hospitality and leisure at 67.2%. Supermarkets and specialist food stores experienced slight declines of -2.0% and -0.9% respectively. Furniture stores (-25.4%) and sports and outdoor retailers (-19.6%) saw notable year-on-year drops, while clothing retailers grew 8.6% compared to April. Rising costs led to a decline in digital content spending (-5.7%), with 18% cancelling TV or streaming services. Barclaycard’s José Carvalho noted the cost of living squeeze affecting discretionary habits, but anticipates short-term boosts from Jubilee Weekend and October’s £400 energy bill discount.

Factuality Level: 8
Factuality Justification: The article provides accurate information based on data from Barclaycard and includes relevant details about consumer spending trends during May compared to previous years. It also presents a balanced view of the impact of rising living costs on various sectors and consumer behavior. However, it could have provided more context or sources for some statements like the £400 energy bill discount.
Noise Level: 3
Noise Justification: The article provides relevant information on consumer spending trends and includes data from Barclaycard, which adds credibility to the claims made. It also discusses the impact of rising living costs on consumer behavior and offers some insights into how people are adjusting their spending habits. However, it could have explored more topics related to the broader economic implications of these trends or provided a deeper analysis of the data.
Financial Relevance: Yes
Financial Markets Impacted: Consumer spending, retail categories, and subscription services
Financial Rating Justification: The article discusses changes in consumer spending patterns due to rising living costs and the impact on various industries such as hospitality, fuel, retail, and subscription services. It also mentions potential short-term boosts from events like the Jubilee Weekend and energy bill discounts.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but it discusses the impact of rising living costs and changes in consumer spending habits due to inflation.

Reported publicly: www.retailsector.co.uk