While four years ago, the sector saw a 37% rise in annual spend, 2022 reported a 42.4% increase but this then slowed in 2023 to 10% and dropped further in 2024 to 3.9%, according to Barclays ‘10 Years of Spend’ report.
The report analysed insights over recent years, tracking consumer and economic confidence and proprietary transaction data.
Barclays chief UK economist Jack Meaning said: “We often get caught up in analysing the current moment, especially in light of the major economic shocks and gyrations of recent months.
“However, this report reminds us of the importance of taking a step back, providing a view of the bigger picture over the past decade.”
Global outlook
“Recent trade developments are not only headwind that UK consumers have weathered recently,” he added.
“The global outlooks remains weak, uncertainty continues and expectations for the year ahead are muted. But this data shows consumers and their spending patterns have always evolved in response to macro shocks and will likely do so again.”
Consumer futurist William Higham outlined how changing consumer behaviour impacts on spending.
He added: “It’s often assumed that in uncertain times practicality becomes more of a priority.
“Instead, it’s usually values and emotions, which steer our choices. This ‘seesaw spending’ means functional purchases often take a back seat in favour of fun, joy and the things and people that matter most to us, a trend set to continue for some time.”
Success advice
Higham said: “Global instability also means consumer behaviour has become less predictable. Businesses need to accept or even embrace, constant change as the ‘new normal’.
“Success will come from adapting quickly as cultural shifts arise while being prepared to withstand or exploit whatever the world throws their way.”
Barclays’ most recent Consumer Spend Report reported on April and found good weather and the long Easter weekend saw spending in bars, pubs and clubs reach a 16-month high - up 6.6%.
The previous data, which covered March, showed consumers were prioritising spending in pubs, bars and clubs when eating and drinking out of home.
