Consumer spending in pubs, bars and clubs reaches 16-month high

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Dramatic change: Consumer spending in pubs, bars and clubs hit a 16-month high last month

The April sunshine and the long Easter weekend saw consumer spending growth in bars, pubs and clubs reach a 16-month high, up 6.6%.  

In addition, the number of transactions increased by 3.9%, the latest Barclays Consumer Spend report revealed.

The report also revealed that the overall hospitality and leisure sector grew by 6.7% – the highest increase since 2023.

Restaurants, cafes and bakeries also saw a boost in April with spend up by 8.1% and transactions up by 3.9%. Takeaways and fast food didn’t fare as well but did see spend up by 4.5% but transactions down by -1.8%.

This is a dramatic change from March figures, which saw pub, bars and club sales increase by only 0.8% in spending growth and 1.4% in transaction growth.

The positive sales for the trade for April was also reflected in CGA by NIQ’s Drinks Tracker.

According to Barclays it is the first time since 2019, when it started tracking these categories, that all retail and hospitality and leisure subcategories saw growth.

Overall retail was also up 6.8%, while in-store retail spending increased by 6.9%, after declining -1.9% year-on-year in March.

Overall consumer card spending grew 4.5% year-on-year in April – the greatest uplift seen since June 2023, and above the most recent CPIH inflation rate (3.4%) for the first time in over two years.

Tariff impact

Research conducted in late April showed seven in 10 UK consumers (72%) were concerned about the impact tariffs could have on their household finances, although this was an improving picture compared to the start of the month (77%).

More than a quarter (27%) also reported trying to save more money each month to build up a buffer, in case prices rise in the future.

Overall confidence in household finances remained resilient at 70%, while 74% feel able to live within their means, both consistent with March’s figures (70% and 73% respectively).

This positive outlook was reflected in the performance of non-essential spending, which was up 5.1% year-on-year, significantly higher than March’s 2.2% increase, and the highest growth since 2023.

Interestingly, seven in 10 (68%) of UK shoppers said they wanted to support UK businesses by buying more home-grown products. One in eight (12%) are willing to pay a premium for British or local products and brands, with this this group happy to pay 22% more on average.

Fruit and vegetables topped the list (46%) of the British-made products shoppers plan to buy more of or switch to, followed by dairy (39%), meat (39 %), seafood (29%), and there was also British alcoholic drinks (20%).

More broadly, three in five (59%) say they plan to buy more local and/or seasonal British food.

Sunny weather

Barclays head of retail Karen Johnson said: “April’s sunny weather inspired consumers to embrace the best of Britain, with all retail, hospitality, and leisure subcategories in growth for the first time in over five years.

“While the long-term impact of any tariffs on household finances remains to be seen, given Thursday’s announcement of a UK/US trade deal, shoppers are demonstrating a commitment to supporting British business, while still carefully managing their money.”

Barclays private bank and wealth management market strategist Julien Lafargue said: “While the world continues to grapple with unprecedented levels of trade uncertainty, UK economic sentiment has been surprisingly positive recently, supported by a resilient consumer.

“The recent decision by the Bank of England to further lower interest rates should add to this momentum.

“Similarly, the trade agreement reached between the US and the UK should provide some much-needed visibility to businesses. That said, growth is likely to remain muted in absolute terms.

“These positive developments may only partially offset the consequences of a softer labour market, and a challenging economic backdrop in the rest of the world.”

The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending.