Barclays reports that card spending on essential shopping experienced minimal growth in August, increasing by just 1% year on year. This is the lowest increase in over three years and can be attributed, in part, to the slower rate of food price inflation. According to research conducted by Barclays in combination with statistical analysis, 52% of consumers believe that certain products are being produced with lower quality standards to cut costs. This phenomenon has been coined as ‘skimpflation’.
One of the most commonly cited examples of skimpflation includes items such as crisps, chocolate, sweets, cakes, and biscuits. Overall, card spending showed a modest increase of 2.8% year to August. However, this growth falls significantly below the inflation rate of 6.4% and is also lower than the figure recorded in July, which stood at 4%. This drop can be partially attributed to unfavorable weather conditions that kept customers away from the high street.
The statistics provided by Barclays, combined with consumer research, indicate that a noteworthy percentage of consumers (17%) are already saving for the upcoming Christmas season. Additionally, 31% expect this holiday period to be more expensive than the previous one. The research also confirms the ongoing trend of shoppers opting for budget or own-brand goods over branded items, as well as reducing their expenditure on luxuries and personal treats (both at 52%). Furthermore, 26% of consumers are specifically purchasing discounted items, and 12% are consciously removing certain products at the checkout to avoid exceeding their budget.
