Surveys reveal sporting events and summer holidays paired with lifting of Covid-19 restrictions prompted a massive increase in British consumer spending in July. Payment card provider Barclaycard said consumer spending was up 11.6 per cent compared with its pre-pandemic level of July 2019, marked by the first growth in the entertainment sector since the first Covid-19 lockdown.
Supermarkets and other food and drink retailers saw an increase in trade as people gathered to watch sporting events, including the second half of the Euro 2020 men’s soccer tournament, Wimbledon, and the Olympic Games. Head of consumer products at Barclaycard, Raheel Ahmed said, “July’s major sports fixtures… kept the nation in good spirits, providing more reasons to celebrate together, and giving the entertainment industry its long-awaited boost back into growth.”
Ahmed added, “While some sectors took a small step back as the post-lockdown ‘honeymoon’ period cooled, July was a positive month overall. However, with inflation expected to rise, it will be interesting to see how this impacts consumer spending behaviour over the coming months.”
Another survey from the British Retail Consortium (BRC) showed spending in shops increased by 6.4 per cent in July compared with a year previously. Chief executive at the BRC, Helen Dickinson said, “July continued to see strong sales, although growth has started to slow.” She added that online sales remained strong as unseasonably wet weather last month pushed customers away from stores.
