The company said confidence in both household finances and the ability to spend on non-essential items declined in May, but customers still found enough money to buy themselves small treats.
Barclays said customers were concerned by ‘shrinkflation’ and the rising cost of digital content and subscriptions – known as ‘streamflation’. But the company’s survey found that UK adults enjoy treating themselves regularly within budget. Popular choices include waiting for sales, opting for smaller or more affordable items and setting aside savings specifically for occasional indulgences.
Karen Johnson, head of retail at Barclays, said: “Consumers are clearly becoming more value-conscious as financial pressures persist, but they’re still finding joy in the everyday – whether that’s a small treat, a cinema trip, a garden project, or a carefully planned getaway.”
Sunshine boosts spending
Two bank holidays and the sunniest spring on record prompted higher spending on pharmacy, health and beauty, while two blockbuster cinema hits – Lilo & Stitch and Mission:Impossible – the Final Reckoning – led to cinema spending surging nearly 20% year-on-year.
Health and beauty recorded the highest spend growth of any category in May, with increased pharmacy spending linked to the 133.2% surge in website visits to the NHS’ hay fever advice page in early May.
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People also spent money on their gardens, with garden centres recording growth of 7.2%, although this was still considerably less than the standout 25% growth achieved in April.
Customers also booked travel, with airline spending soaring by 9.7%. A quarter of UK adults said they’ll opt for lesser-known or cheaper alternatives to popular tourist spots this year, otherwise known as ‘destination dupes’.
Of these, a third cited cost savings as the main reason, while others are seeking more authentic or up-and-coming destinations.
Grocery spending slows as consumers get savvy
More than half of us are actively trying to reduce grocery spending by turning to loyalty schemes, discounted products, discount supermarkets such as Aldi and Lidl and own-brand alternatives to big brand favourites.
Other popular strategies included relying on one big weekly shop instead of expensive top-ups.
Grocery spending grew just 0.9% in May, a drop compared to April’s 6.6% uplift.
