Barclaycard reveals July boost to non-essential retail spending

Data from Barclaycard, which sees nearly half of the UK’s credit and debit card transactions, has revealed a July uptick in non-essential retail spending in July as Britons return to the high street.

Spending on essential items, such as groceries, was up in July on the same month last year by 3.2%. Non-essential spending, although still 4.7% lower than 2019, had risen sharply compared with the previous month as shoppers return to high streets as businesses reopened.

With the government launching Shop Local Week from 10th to 16th August, Barclaycard report that the boost to spending had come from shoppers choosing local retailers, with 45% of Brits choosing to support nearby businesses, with 20% visiting local stores more often, and 19% spending more than usual.

Research from Barclaycard also revealed positive signs for retailers in shoppers attitudes towards the high street. 37% now say they are unconcerned about visiting shops, with over 55s most likely to feel this way, with those comfortable in stores reassured by guidance over face-coverings and hygiene measures such as anti-bacterial hand gel being available for customer use.

As well as feeling more confident about shopping, Brits also appear more positive about personal finances, with 72% having confidence in household finances, despite low public confidence in the economy.

Esme Harwood, Director at Barclaycard, said:

Consumer spending has warmed up alongside the weather, as Brits return to the shops for non-essential items. It’s a welcome development for retailers to see spending up across many sectors in the first full month of data since lockdown restrictions started to ease.

“However, a sense of cautiousness still prevails. While some consumers feel more comfortable returning to shops, others are still wary of taking public transport and travelling outside the UK, with fears and uncertainties lingering about returning to normality too quickly.”