Four days of jubilee celebrations provided some much-needed respite for Britain’s retailers after a tough May in which cost of living pressures weighed heavily on spending.
There was a sharp increase in consumer footfall on the high streets during the long bank holiday weekend to mark the Queen’s 70 years on the throne, according to the British Retail Consortium (BRC).
The number of people visiting shops in the jubilee week was up more than 17% on the average for May – a month in which the BRC said there was evidence of rising inflation deterring the public from spending, with big-ticket items particularly hard to shift. Footfall for the bank holiday Thursday on 2 June alone was 45.5% higher than the May 2022 average.
“It was great to see so many people out celebrating and shopping at their favourite local destinations – a welcome boost for retail businesses reliant on store performance, particularly on the high street,” said the BRC’s chief executive, Helen Dickinson.
“We hope that the momentum can continue despite the ongoing economic turbulence.”
Dickinson said the BRC’s monthly sales monitor for May showed consumer demand being squeezed by the cost of living crunch that had already driven the annual inflation rate to a 40-year high of 9% in April.
Sales last month were 1% below those in May 2021, with higher-value items, such as furniture and electronics, taking the biggest hit. Fashion and beauty products were the strongest performers as shoppers prepared for summer.
“It is clear the post-pandemic spending bubble has burst, with retailers facing tougher trading conditions, falling consumer confidence, and soaring inflation impacting consumers spending power,” Dickinson said. “Supply chain issues including rising commodity and transport costs, a tight labour market and higher energy bills are forcing retailers to increase their prices, contributing to wider inflation.”
Barclaycard said it had detected a similar pattern to the BRC, with weaker spending on discretionary items in May followed by an increase in platinum jubilee activity.
In the four days of the bank holiday break from 2 June to Sunday 5 June, spending in restaurants was up 41.5% on the same Thursday-to-Sunday period of 2021; spending in pubs, bars and night clubs rose by 74.2%, while entertainment spending increased by 67.3%.
Rob Cameron, the chief executive of Barclaycard Payments, said: “Spending soared across many sectors during the platinum jubilee weekend as Brits came together to celebrate and enjoy the sunny weather. Despite wider concerns around the cost of living, the hospitality sector especially will be pleased by this welcome boost, having missed out on two years of unrestricted trading.”
