Warm weather and ‘shrinkflation’ impact consumer spending behaviour in June

Consumer card spending grew 5.4 per cent in June yet consumers spending habits are continuing to shift due to the cost-of-living crisis, new research has found.

Figures from Barclays’ Consumer Spending Index found that discount store spend rose 8.8 per cent, its largest growth since April 2021.

Eight in 10 consumers reported concerns over “shrinkflation” – when products are sold in smaller packages or portion sizes yet cost the same or more than they used to be – suggesting a pivot to discount retailers to curtail this perceived issue.

The research also found that while below the inflation rate of 7.9 per cent, card spending growth bested the figure recorded in May by almost two per cent.

In response to shrinkflation, the research also found that 29 per cent of shoppers are instead just buying their favourite products less often, while almost a fifth –18 per cent – are switching to brands which haven’t changed the size of their products.

Barclays attributed other growth areas to June’s warm weather, which resulted in increased spend on nonessential items such as summer clothing and garden furniture by 5.7 per cent.

The weather also factored into an 8.4 per cent increase on spend at pub and bars – marking its biggest rise since Barclays’ January index figures.

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