Britons splurge on takeaways, meal-kits and pets in 2021

Britons indulged in takeaways, TV subscriptions, home improvements and their pets in 2021, as the pandemic and limits on social interaction forced a widespread change in habits.

Data from Barclaycard revealed an unbalanced recovery in consumer spending this year, with many sectors recording double-digit increases compared with 2019, while others, such as hospitality and leisure, plunged.

Spending on takeaways and fast food rose 62 per cent compared to pre-pandemic levels, according to figures published on Friday, which were based on credit and debit card transactions from nearly half the country.

The popularity of specialist food and drink stores, including meal-kit providers, took off, with spending up 74 per cent, as people turned to the convenience of local shops and delivery services for their weekly meals.

Overall, consumer spending was up 6 per cent compared to 2019.

During the pandemic a significant number of households turned to four-legged companions for solace, with spending on vets and pet retailers rising nearly 30 per cent over the year.

Money was also ploughed into home entertainment with digital content and subscriptions, such as Netflix and Disney +, registering a 50 per cent increase during the same period.

Spending on home improvements also increased with DIY retailers reporting 26 per cent growth in 2021 as people quarantined at home during lockdown.

Clare Bailey, independent retail expert and founder of The Retail Champion, said: “It is encouraging to see that many categories have enjoyed growth in what has been another turbulent year.”

Britons also dedicated more time to sports and outdoor activities with retailers in these sectors reporting a 22 per cent increase in sales. Purchases of golf clubs were up 50 per cent.

The strong pace of growth in some sectors shows that “consumers and businesses are capable of adapting to and overcoming immense hardship and adversity,” said Jose Carvalho, head of consumer products at Barclaycard.

While household consumption was the main driver of economic contraction in the first three months of this year, it became the largest contributor to the UK economic rebound in the third quarter, according to official data.

With many retailers closed and to avoid the risk of infection, many Britons moved online, boosting internet sales by 63 per cent, while face-to-face retail spending was flat.

The strong performance of some sectors contrasted starkly with hospitality and leisure, where spending was down 19 per cent compared to 2019, reflecting the effect of Covid-19 restrictions and voluntary social distancing.

This is despite many deciding to spend their holiday in the UK as restrictions and quarantine guidelines continued to impact international travel, particularly among older consumers, reflecting older groups being vaccinated earlier.

Holiday spending from those aged 50-64 was up 28 per cent in June, compared to an 18.4 per cent decline among 16-24-year-olds.

Carvalho said 2021 was another challenging year, as the pandemic continued to hamper the UK economy. “As we look ahead to 2022, the economy will face fresh challenges from rising household bills, inflation, and uncertainty about the new Covid variant,” he said.