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CLHNews ISSUE 224
MAY 2019
Consumer Spending Rises as Visits to Pubs and Restaurants Increase
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Consumer spending in the UK grew by 2.5 per cent year-on-year in April, as milder temperatures encouraged Brits to go out and spend in restaurants and pubs. Data from Barclaycard revealed that essential expenditure grew by 6.2 per cent in April. Non-essential spending overall saw more muted growth of just 1.2 per cent. However, one category that did perform very well was pubs and restaurants, which reached doubledigit growth of 13.1 and 10.0 per cent respectively – as Brits made the most of the sunny bank holiday by relaxing and dining out. There was better news, particularly for drink led pubs which saw a like for like sales increase of 10.9%, according to Coffer Peach Business Tracker. Overall,
collective like-for-like sales for the combined managed pub, bar and restaurant sector were up 1.1% on April last year. While the data from Barclaycard reveals that restaurant sales were up overall, sales were not so good for restaurant chains however which saw a collective likefor-like sales drop of almost 17% against Easter trading in 2018. The Brexit delay, says Barclaycard along with warmer weather over the Easter weekend, may be contributing factors to a slight increase in consumer confidence. April saw a rise to 33 per cent of consumers feeling confident in the UK economy, compared to 26 per cent in March. Furthermore, over a quarter of Brits (27 per cent)
admitted the sunshine in April had encouraged increased expenditure. Just under a fifth of UK (19 per cent) adults also said they spent more money than usual on leisure and experiences during Easter. Half of these consumers opted to eat out (52 per cent) or enjoy day trips with family and friends (48 per cent). Esme Harwood, Director at Barclaycard, said: “Warmer temperatures, especially over the Easter weekend, led many consumers to spend on experiences and dining out. Overall consumer spending in April has remained relatively modest, with the retail sector continuing to struggle.
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