Growth in Brits’ non-essential spending reaches 2024-high
Consumer card spending increased 1.2 % year-on-year in September, after returning to growth in August, but remained lower than the latest CPIH inflation rate of 3.1 %. Non-essential spending saw its highest growth so far this year, at 2.7 %, as retailers’ discounting incentivised shoppers. Several retail sub-categories enjoyed a strong performance, such as clothing, health & beauty, and department stores, while entertainment spend increased 14.4 %.
In September, essential items saw their greatest decline (-1.7 %) since April 2020. Spending on groceries fell (-0.8 %) for the first time since June (-2.2 %), as Brits continue to find ways to cut costs, with supermarkets experiencing a -1.1 % dip. Growth at food and drink specialist stores slowed to 2.7 % (down from 5.1 % in August).
Seven in 10 (70 %) consumers are looking for ways to get more value from their weekly shop or reduce how much they spend, up from 66 % in August, and higher than the 67 % 2024 average. Of those seeking savings, half (47 %) are looking out for loyalty scheme discounts and deals, while 46 % are using vouchers or loyalty points to get money off their shopping. This comes as two-fifths (39 %) of Brits say they are trying ‘slow shopping’, by being more intentional and discerning with their purchases.
Little luxuries and discounting boost retail spend
Overall retail spending rose 1.1 % in September compared to the same period last year – a marked improvement after the sector endured a challenging summer, as retailers’ discounting and promotional activity incentivised shoppers during back-to-school season. Spending on clothing increased 23.6 % month-on-month and 4.5 % year-on-year – the first uplift for the category in 2024, and its highest growth since July 2022 – while department stores saw their greatest boost (5.5 %) since August 2023.
In addition to being encouraged by markdowns, consumers are feeling more confident in their ability to spend on what matters most to them, with half (53 %) saying there are treats and luxury purchases they continue to buy, even when trying to budget. Two fifths (43 %) of these shoppers are prioritising indulging in sweet treats, spending an average of £22 each month.
Those prioritising new clothes and accessories (24 %) spend £73, while beauty spenders (18 %) fork out £65 each. This is reflected in the 8.9 % boost the category enjoyed in September – its highest growth this year – with recent Barclays Consumer Spend data showing that health and beauty has consistently outperformed broader non-essential spending since the start of 2023.
Ticket sales see Brits opening their Wonderwall-ets
Entertainment increased 14.4 % in September – the highest uplift recorded since July 2023 (15.8 %), when the pre-release window for Taylor Swift’s Eras Tour resulted in a surge in spending. A fifth (20 %) of those prioritising “treat purchases” even when budgeting continue to spend on theatre and live music tickets, following a trends towards spending on experiences post-Covid.
Almost half (45 %) of consumers have noticed dynamic pricing coming into effect at the checkout – where companies raise prices during peak times or when demand is higher. Of this group, 46 % noticed it impacting live event tickets specifically.
Despite this, enthusiasm for Oasis Live ’25 was unwavering. Spending on Shows & Concerts grew 35.8 % year-on-year in September, after tickets for the long-anticipated Gallagher brothers’ reunion went on sale. Spend on the day of general release was six times the rest of the month’s average daily spend. Meanwhile cinemas saw growth of 18.2 % in the month, amid the success of blockbusters such as Beetlejuice Beetlejuice, Deadpool & Wolverine and It Ends With Us.
Binge-watching on the sofa beats bar stools
Insperiences saw a slight improvement in September, up 4.3 % in comparison to 3.0 % in August, signalling a return to indoor experiences as the darker, cooler evenings set in.
Digital content & subscriptions enjoyed a particularly strong month (up 10.6 %), as streaming platforms released popular series such as Emily in Paris and The Perfect Couple. Consumers also enjoyed shopping from the comfort of the couch in September, as online retail spending (excluding groceries) grew 3.5 %.
On the other hand, pubs, bars and clubs saw limited growth, at 0.6 %, down from 3.2 % in August. This comes as 40 % of those cutting their discretionary spending say they will cut-back on drinking out to save money.
Brits are making a list, and checking it twice ahead of festive cost concerns
As Christmas products hit supermarket shelves, a quarter of Brits (23 %) anticipate that the upcoming festive season will be more expensive than last year. More generally, 88 % of UK adults say they are concerned about rising food prices, with a similar proportion (87 %) concerned about inflation. Four in five (82 %) are concerned about shrinkflation, and those that have noticed this have seen festive staples such as chocolate (57 %), crisps (47 %) and sweets (34 %) feel the bite of this trend.
Cost-conscious Brits (15 %) have also started saving money for Christmas, with reusing old decorations (33 %), keeping an eye out for festive offers (26 %), and buying gifts in advance to spread costs (22 %) popular ways to reduce costs.
Karen Johnson, head of retail at Barclays, said: “Retail’s recovery emerged as a bright spot in September, despite there being colder weather and darker evenings on the horizon.
“While shoppers’ remain cost-conscious, it’s clear they’re responsive to retailers’ promotional activity. Discerning shoppers are also finding room for treats and little luxuries within their budget, demonstrating that consumers are prioritising spending on things that bring them joy.
“While many are anticipating a costly Christmas, there are encouraging signs that people feel confident in their ability to manage their household finances and take control of their festive spending.”
Overall growth figures
| Spend Growth | Transaction Growth | |
| Essential | -1.7% | -1.5% |
| Non Essential | 2.7% | 2.3% |
| OVERALL | 1.2% | 0.8% |
| Retail | 1.1% | 0.5% |
| Clothing | 4.5% | 6.3% |
| Grocery | -0.8% | -0.9% |
| · Supermarkets | -1.1% | -2.0% |
| · Food & Drink Specialist | 2.7% | 4.9% |
| Household | -1.9% | 2.6% |
| · Home Improvements & DIY | -5.0% | -6.3% |
| · Electronics | 0.7% | 9.4% |
| · Furniture Stores | 0.3% | 8.0% |
| · Garden Centres | 1.7% | 3.3% |
| General Retailers | 4.2% | 2.2% |
| · General Retailers & Catalogues | 5.4% | 3.4% |
| · Department Stores | 5.5% | 8.4% |
| · Discount Stores | -5.7% | -7.5% |
| Specialist Retailers | 3.4% | 0.1% |
| · Pharmacy, Health & Beauty | 8.9% | 1.8% |
| · Sports & Outdoor | -1.7% | -3.8% |
| · Other Specialist Retailers | 1.5% | -0.7% |
| Hospitality & Leisure | 5.1% | 1.7% |
| Digital Content & Subscription | 10.6% | 7.2% |
| Eating & Drinking | 1.0% | -1.7% |
| · Restaurants, Cafes & Bakeries* | 1.4% | -1.8% |
| · Bars, Pubs & Clubs | 0.6% | -1.9% |
| · Takeaways and Fast Food | 0.8% | -1.5% |
| Entertainment | 14.4% | 8.3% |
| Hotels, Resorts & Accommodation | 2.8% | -0.1% |
| Travel | 7.0% | 4.7% |
| · Travel Agents | 9.2% | 14.6% |
| · Airlines | 9.3% | 5.0% |
| · Public Transport | -0.5% | 0.2% |
| · Other Travel | 7.3% | 14.0% |
| Other | -3.9% | -0.8% |
| Fuel | -10.4% | -7.0% |
| Motoring | -7.6% | 6.2% |
| Other Services | 1.7% | 3.2% |
| Insperiences | 4.3% | 2.4% |
| Online | 3.7% | 5.1% |
| Face-to-Face | -0.7% | -0.9% |
