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U.K. consumer spending jumped 5.9% this year over levels prevailing before the pandemic struck, driven by a shift toward experiences at home.
Barclaycard, which sees about half of all credit and debit card purchases in the nation, said so-called “insperiences” boosted spending on takeaways and fast food by 62% in 2021 and digital subscriptions by 47%.
The figures underscore the shift away from shopping in stores while the coronavirus raged. They suggest strength in consumer demand that may help the economy recover from its worst recession in a century and benefit online retailers, which enjoyed a 63% jump in sales this year compared with face-to-face stores.
“Consumers and businesses are capable of adapting to and overcoming immense hardship,” Jose Carvalho, head of consumer products at Barclaycard, said in a report released on Friday. “I’m optimistic about the year ahead.”
The report also showed:
- Summer holidays in the U.K., dubbed “staycations,” drove a 15.9% jump in spending on hotels, resorts and accommodation in August. Older consumer aged between 50 and 64 accounted for the biggest increases, while those ages 16-24 cut spending
- Food and drink specialist stores including butchers, green grocers and meal-kit providers saw 74% growth this year with consumers favoring local shops
- Spending on home improvements, do-it-yourself repairs and furniture also rose strongly
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