Consumer Behavior

UK retail spend to fall short of 2022 mark

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October 16, 2023

Holiday spend by U.K. shoppers is expected to increase by 3.4% this year, a figure that's less than 2022 and marks a second quarter of slow growth this year. In addition the U.K. consumer is facing a 9.3% increase in retail prices.

Those are top findings from GlobalData, a data and analytics provider.

The 3.4% increase is barely half of the 6.2% jump in 2022, according to a press release on the data findings.

"This year's growth in retail sales is driven by inflation, which GlobalData expects to reach 9.3% for the year as a whole. Sharply higher prices mean shoppers will spend less in real terms than last year, choosing either to trade down or trim the number of presents they buy. Last year sales growth was supported by shoppers spending savings built up during the lock down. But with those savings now depleted by cost-of-living increases and mortgage rate hikes, consumers are likely to shop more cautiously and more savvily," Nick Gladding, lead retail analyst at GlobalData, said in the release.

GlobalData expects food and grocery to grow faster than others this year, with shoppers spending 5.9% more through the quarter than they did last year.