12 May Card spending rose 11% in the first week of May – but what are we all splashing our money on?
Credit and debit card spending soared during the first week of May and was also up 5% against the same week last year. And if you think you’re paying considerably more for some items than you did in 2022, then the home delivery expert ParcelHero says ‘hard cheese’ – literally. The price of hard cheese has rocketed by 40% and kids’ sports shoes by 33%.
Brits spent 11% more on credit and debit cards in the first week of May than in the previous week. The Office for National Statistics (ONS) ‘real-time indicators’ report into economic activity showed weekly card spending up significantly, and 5% against the same period last year.
The home delivery expert ParcelHero says the beginning of May finally saw a significant jump in spring spending for retailers. ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘There’s plenty of evidence that May started on the up for most retailers. We spent a whopping 15% more on cards in the first week of this month than we did in the same period pre-Covid. And it wasn’t only online retailers seeing a higher spend; retail footfall was also up year-on-year.
‘Some of this increased expenditure will have been created by Coronation celebrations. From food and beer to bunting and souvenirs, it was an excuse to indulge in some retail therapy.
‘Before we run away with the thought that the good times are back, however, it’s important to remember that much of the year-on-year increase in spending is because the cost of many items has risen considerably over the last 12 months.
‘The reason the Bank of England increased interest rates to 4.5% yesterday was primarily to slow rising prices. That’s literally “hard cheese” for shoppers. A second ONS report released this month monitored average prices over the year. It singled out hard cheese as one of the items with the highest annual price increase, soaring by 40% in a year. 1kg of an Emmental or gruyere has increased from £6.92 to £9.98 over the past 12 months.
‘Olive oil prices also failed to pour oil over troubled waters. They have soared nearly 50% over the past year. 1 litre of olive oil has increased by 49% – an average increase of £1.91 to £5.78.
‘It wasn’t just food prices on the up. Kids’ sports trainers saw inflation take a tight grip. They rose by 33% – an average increase of £8.61 to £34.48. And the cost of infants’ trousers was likely to have caught some parents with their pants down. They rose by 22% – an average increase of £1.69 to £9.45.
‘Even our favourite fast foods saw a swift increase in price. Takeaway fish and chips rose by 19% (an average increase of £1.44 to £9.00). Burgers rose by 17% (an average increase of 64p to £4.35) and chicken and chips by 17% (an average increase of 89p to £6.18).
‘The outlook for online and High Street retailers is improving. However, inflation is continuing to have an impact on consumer confidence. As retail settles to a new equilibrium, it will be those retailers with strong in-store and online sales that will ultimately triumph in a post-Covid world. ParcelHero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that, unless retailers develop an omnichannel approach, embracing both online and physical store sales, the High Street as we know it will reach a dead-end by 2030.
