Consumer card spending in furniture stores declined during August when compared to last year, says new data from Barclays.
According to the latest Barclays Consumer Spending Index, which includes both debit and credit cards, furniture store spending growth declined 7.8% – down for a twentieth consecutive month, while transaction growth was fell 3.9% against the same month last year.
Home improvement and DIY stores saw spending growth fall 5.7%, with transaction growth down 2.8%. Department stores saw spending growth increase 0.8%, with transaction growth up by 6%. Discount stores saw a decline of 5% in spend growth, while transaction growth was down 7.4%.
Overall, consumer card spending returned to growth in August, rising 1% year-on-year following two consecutive months of decline, although it remained below the latest CPIH inflation rate of 3.1%. Non-essential spending also bounced back (up 0.7%) thanks to the late arrival of barbecue and picnic weather propping up butchers, delicatessens and garden centres.
Karen Johnson, Head of Retail at Barclays, said: “The long-awaited British summer has unlocked pent-up demand across a number of retail categories, such as garden centres and butchers, as many Brits dusted off their barbecue for the first time this year.
“We’re also seeing an emerging trend of consumers indulging in retail therapy for mood-boosting pick-me-ups, often in the form of sweet treats and cosmetics. This is a much more immediate version of the long-running trend of consumers making room in their budgets for memorable experiences, like tickets for next year’s Oasis tour, which went on sale over the weekend.
“While cost-conscious shoppers continue to rein in discretionary spending to account for rising prices, especially in the run-up to Christmas, it’s encouraging to see that Brits are feeling noticeably more confident in their personal finances – a strong indicator of future spending as we approach the crucial festive period.”