Consumer spending down 7.1% in 2020 amid 'Turbulent Time' times for the hospitality industry
Wednesday, January 6, 2021
Overall consumer spending dropped 7.1 percent year on year in 2020 as antiviral restrictions impacted many industries, with retail and hospitality industries the heaviest hit.
But lifestyle changes have fuelled growth in some sectors, with online grocery retailing picking up most of the pace.
Data from Barclaycard, which accounts for almost half of the nation's credit and debit card transactions, shows the amount spent on essential goods rose by 4.1 per cent by 2020 compared with last year.
The most significant driver of this growth was supermarket shopping, which achieved an overall sales growth rate of 20.3 per cent, with online grocery shopping increasing by 20.3 per cent as demand for delivery services increased.
Pubs and bars were similarly affected by the curbs on social intercourse and recorded an overall 36.7 per cent fall.
Clare Bailey, independent retailers expert and founder of The Retail Champion, said: "When talking to retailers I am encouraged that many continue to shop where they live and help local businesses.
A crucial positive for 2020 was that support for independent firms enjoyed a boom, with many Britons opting to shop locally.
Food and beverage markets, which include not only licenses but also butchers or bakeries, saw an overall year-on-year increase of 7.2 per cent.