Barclays Consumer Spending Report January 2026

Period covered: 25th December 2025 to 22nd January 2026

Headline trends

Consumer card spending rose 0.8% YoY in January, significantly below CPIH inflation (3.6%), indicating that spending remains under pressure in real terms despite a post-Christmas uplift.
Essential spending fell 1.1%, marking the sixth consecutive month of decline, driven by continued weakness in groceries (-0.2%), supermarkets (-0.7%) and fuel (-4.0%).
Non-essential spending grew 1.6%, supported by January sales activity and stronger demand for entertainment and online retail.
Consumer confidence remained stable: confidence in household finances held at 66%, while confidence in consumers’ ability to live within their means remained at 71%, suggesting cautious but steady sentiment.
Retail spending recovered to 1.7% growth, following a flat December, as shoppers delayed purchases into the January sales period.
Online retail spend (ex-grocery) rose 5.7%, with online’s share of retail spending reaching 59.2% – its highest level since January 2022, reflecting consumers’ preference to browse and buy from home during winter conditions.
Entertainment spending reached a six-month high (+8.3%), supported by increased streaming and cinema attendance, driven by cold weather, awards season and high-profile TV releases.

Retail highlights

Pharmacy, Health & Beauty recorded strong growth (+8.0%), as consumers continued to prioritise wellbeing and personal care.
Clothing spend increased 3.1%, rebounding from a subdued December as shoppers took advantage of post-Christmas promotions.
General Retailers & Marketplaces grew 4.8%, highlighting the continued shift towards multi-category online platforms during sales periods.
Food & Drink Specialist retailers rose 4.5%, supported by ongoing ‘premiumisation’ of pantry staples, with 19% of consumers buying more premium products and 17% willing to pay more for foods that support long-term health.
Grocery and supermarket spending remained weak (-0.2% and -0.7% respectively), reflecting continued price sensitivity in everyday essentials.
Discount Stores (-2.0%) and Department Stores (-3.4%) recorded declines, suggesting that promotional intensity has not been sufficient to fully revive footfall in traditional value and department store formats.
Specialist Retailers grew 6.2%, with particularly strong growth among niche specialist categories (+9.3%), underlining consumers’ willingness to spend selectively on interest-led purchases.

Hospitality & leisure

Hospitality & Leisure spending rose 2.0%, supported by strong growth in Entertainment (+8.3%) and Digital Content & Subscriptions (+9.3%).
Digital Content & Subscriptions grew 9.3%, as 35% of consumers reported watching more films and TV in January due to cold weather and dark evenings.
Eating & Drinking rose 1.2%, but transaction volumes fell (-1.6%).
Restaurants, Cafes & Bakeries grew 1.7%, while Bars, Pubs & Clubs rose 2.6%.
Takeaways and Fast Food declined (-0.3%), marking the category’s weakest performance since mid-2025, as consumers prioritised home cooking to manage household budgets.
Travel spending rose 1.4%, driven by strong growth at Travel Agents (+6.0% and +15.0% in transactions), as consumers booked ahead for future trips, while Airlines (-4.6%) and Public Transport (-1.1%) remained under pressure.