Fashion is having a bad month as expenses fall

UK consumer spending on debit and credit cards rose in March but was far less than the headline inflation rate of 9.2%, so that in real terms, spending fell.

That’s according to Barclays’ latest monthly report which says Britons are making further cuts to tackle a cost-of-living crisis.

They are increasing their spending in several areas but sadly, fashion is not among them.

In fact, clothing stores experienced their steepest annual decline in six months (down 3.4%) in March, with 54% of consumers saying they were reducing discretionary spending, and 63% saying they were specifically cutting back on new clothes and accessories.

Foodstuffs got a boost of 7.1% but, again, well below the category’s specific inflation rate (18.2%). And spending on utilities rose 39.3%, as the cold weather continued into March and households continued to heat up.

Of course, groceries and heating are must-haves. But other than those things they are must buy, what is the British consumer choose spending their spare cash? Subscriptions & digital content experienced the highest growth since October 2022, thanks to the latest viewing of TV shows like Succession And Ted Lasso. That’s another sign consumers are staying at home rather than socializing

And home improvement and DIY stores enjoyed a month-over-month increase of 4.3%, as more consumers began tidying up their homes and gardens in preparation for the warmer months.

Meanwhile, other specialist retail categories rose 3.5%, the strongest performance since April 2022, thanks to increased spending at flower shops and card shops for Mother’s Day. However, this year’s numbers have increased because Mother’s Day fell in a different reporting period last year, so that growth is unlikely to continue into next month.

Barclays also said that Gen-Z consumers spend a higher proportion of their income on discretionary purchases compared to those over 25. Gen Z may have less cash overall, but on average, they spend 41% less than the older group on essentials. spending on non-essential items was only 21% lower. This may be because they are more likely to live with their parents, and therefore have less responsibility when it comes to important expenses.

That means they tend to spend the greater part of their money in preferred categories like fashion and beauty, as well as socialize more, which can also spur further fashion and beauty purchases.