Brits favour experiences over clothing at Christmas

As spending figures from the festive period from the major credit card companies is revealed, the predicted outcome is consumers are spending their cash on experiences, rather than clothing.

According to Visa's UK Spending Index, consumer spending is up 2.6 percent on the year in December, with spending growth solid in e-commerce categories, up 5.5 percent year-on-year.

Hotels, Restaurants & Bars saw an increase of 7.3 percent and Recreation & Culture 6.4 percent, meaning consumer sought out experiences rather than fashion at Christmas. strongest increases in expenditure

Sales of clothing down 1.1 percent

Clothing and footwear suffered a 1.1 percent drop in sales while homeware categories were down 0.7 percent in December “following a Black Friday boost in the previous month,” noted Visa. Fewer people bought new outfits or gave clothing gift vouchers as presents, the report added.

“Online retailers enjoyed strong sales over the whole Christmas period, while bricks & mortar retailers saw an improvement, after a disappointing dip in November, as consumers made a last minute dash for gifts on the high street,” said Kevin Jenkins, Visa’s managing director for the UK and Ireland.

Jenkins added: “Growth was once again led by the experience sector, with consumers going to Christmas markets, travelling to visit loved ones, or venturing to various parts of the country to celebrate. Food was, unsurprisingly, another sector which performed well, with spend up 2.9 percent. Spend on clothing and household goods, however, fell in December following a Black Friday boost in the previous month.”

Barclaycard shared Visa's sentiment with a drop in spending and their research showed two thirds of consumers expect prices to continue to rise in 2017.

Paul Lockstone, managing director of Barclaycard, said: “Consumers seem to have entered 2017 with more caution, citing worries about inflation and Article 50.

Photo credit: Pexels and Visa UK Spending Index