Barclays says consumers adopted a “treat yourself” attitude in 2024

Looking back at 2024, Barclays said that essential spending in the UK grew just 0.9 percent, down from 3.9 percent last year, as British consumers prioritised spending on affordable treats and experiences.

Barclays’ data reveals that non-essential spending increased 1.9 percent, as consumers’ strong appetite for “little luxuries” boosted health and beauty, entertainment and digital content, but still lagged behind 2023 levels (4.2 percent).

The Barclays Consumer Spend report adds that while 2024 saw cutbacks continuing for consumers, many adopting the “treat yourself” attitude, with nearly half (46 percent) of Brits stating that they prioritise spending on small, affordable, mood-boosting luxuries such as cosmetics, even while tightening budgets.

It was this “lipstick effect” that boosted pharmacy, health and beauty retailers by 7.1 percent, with beauty spenders splashing out 291 pounds each on average in 2024.

For clothing stores, transaction volumes grew by 3 percent, while spending was down 0.2 percent. There was better news for department stores, as transaction volumes were up 4.6 percent and spending increased by 1.4 percent. For general retailers/catalogues, the figures were up 3.5 percent and 3.9 percent, respectively.

Overall consumer card spending increased 1.6 percent year-on-year in 2024, which Barclays said was noticeably lower than 2023’s 4.1 percent growth, as Britons limited food and drink and ‘big ticket’ purchases.

Karen Johnson, head of retail at Barclays, said in a statement: “2024 demonstrated Brits’ strong appetite for experiences very clearly, spending selectively elsewhere in order to find room in their budgets for the moments and treats that the most matter to them.

“This conscious consumerism will continue to shape spending in the new year, with entertainment likely to maintain its momentum, as Brits continue to embrace their ‘new essentials’.”