Summer sales pay off as retail spending continues to rise
12 Aug 2010 10:27 GMT
Consumer spending on cards saw a near double digit increase in July compared to the same month last year, challenging concerns that consumer confidence has dipped.
According to new figures released today by Barclaycard, traditional summer discounting by retailers appears to have enticed consumers back to the high street, with the amount spent on credit and debit cards, in-store and online, increasing by 9.9% in July compared to the same month last year. Year-on-year figures have steadily increased since the start of 2010, with July representing the third month in a row that these figures have increased by more than 9%.
The figures run contrary to recent reports of a dip in consumer confidence – including the British Retail Consortium’s Index of Consumer Confidence[1]– suggesting that a gap exists between what consumers say about their financial prospects and how they behave, with spending on the high street remaining strong.
Stuart Neal, Head of Barclaycard UK Payment Acceptance said: “If consumer confidence is taking a hit, it’s not happening on the high street. If spending remains at this level compared to last year, 2010 could prove overall to be a very good year for retailers.”
Compared to June, spending increased slightly in July by 1.9%, partly through consumers taking advantage of the earlier start to summer sales and July having 31 days compared to June’s 30 days.
The Barclaycard Spending Index is based on spending on all credit and debit cards, across 44 retail sectors at retailers that use Barclaycard Payment Acceptance to process these transactions for them. Barclaycard Global Payment Acceptance processes credit and debit card payments for 85,000 businesses in the UK, around 30% of the UK market.
Notes to Editors:
Barclaycard Global Payment Acceptance enables businesses to accept credit and debit card payments. The data in this index relates to retailers’ credit and debit card transactions processed by Barclaycard rather than purchases made with a Barclaycard.
With an overall market share of over 30%, Global Payment Acceptance captures a significant proportion of all retail transactions in the UK. The index is based on the variation in volumes of credit and debit card transactions and provides both a year-on-year and month-on-month comparison. The index incorporates a number of specific filters to ensure the data is not affected by changes to the Barclaycard GPA customer base over time.
The index does not take into account the effects of any cash payments made to retailers.
The index does not adjust for price increases/decreases but measures the value of credit and debit card spending at retailers that use Barclaycard to process their card payments.
2010 month-on-month trend to date
Month–on-month changes | % Change |
January to February | (2.4)% |
February to March | 17.9% |
March to April | 0.8% |
April to May | 6.5% |
May to June | (5.5)% |
June to July | 1.9% |
Barclaycard, part of Barclays Retail and Business Banking, is a leading global payment business which helps consumers, retailers and businesses to make and accept payments flexibly, and to access short-term credit when needed.
The company is one of the pioneers of new forms of payments and is at the forefront of developing viable contactless and mobile payment schemes for today and cutting edge forms of payment for the future. It also issues credit and charge cards to corporate customers and the UK Government. Barclaycard partners with a wide range of organisations across the globe to offer their customers or members payment options and credit.
In addition to the UK, Barclaycard operates in the United States, Europe and Africa.
Key facts published in August 2011;
- number of UK customers: 12.0m
- number of International customers: 10.2m
- number of retailer/merchant relationships: 90,000
Barclays.com