Study: 55% of Brits spending less in bars
Consumers are beginning to cut back on eating and drinking out as living costs spiral, with 55% spending less in pubs, bars and nightclubs, according to new research.
Opinion Research questioned 2,000 respondents in the UK between 22 and 26 July on behalf of Barclaycard, as part of its consumer confidence survey.
The study showed that the cost-of-living squeeze has already resulted in reduced spending in the on-trade.
Nevertheless, when looking at consumer confidence levels, the study showed 66% of Brits were feeling confident about their household finances. Furthermore, 54% were confident in their ability to spend on non-essential items.
However, these percentages are lower compared with July 2021, when confidence in household finances sat at 72% and consumer confidence in spending on non-essential items was 62%.
José Carvalho, head of consumer products at Barclaycard, said: “July saw Brits get into the swing of summer by prioritising non-essential spending on staycations, new clothes and beauty products, while the heatwave gave an extra boost to the electronics sector, as consumers bought gadgets to keep cool.
“However, inflation continues to have a noticeable impact, with price rises forcing shoppers to spend more on essential everyday items, such as fuel, butter and milk, and to cut back on some discretionary experiences such as meals and drinks out, and holidays abroad.
“We know that this is a really challenging time for many consumers, so it is reassuring to see that more Brits are feeling confident about their household finances and ability to live within their means each month.
“This shows that, faced with difficult circumstances, many are finding ways to budget and manage their finances successfully to cope with ongoing inflationary pressures.”
Earlier this month, the Scottish Licensed Trade Association warned that the Bank of England’s interest rate increase could be the final straw for hospitality businesses.