Spending on clothes shopping, and leisure activities such as sports clubs and cinemas has dropped
The rising cost of essentials such as fuel and groceries has meant a reduction on the amount people in Waterford and across Ireland spend on clothes and leisure facilities, latest figures show.
The latest monthly consumer spending report by Revolut, the global financial super-app with more than 1.9 million customers in Ireland, shows that consumers are spending more on holidays, year on year, whilst spending on groceries, restaurants and fuel is increasing month on month.
In contrast, spending on clothes shopping, and leisure activities such as sports clubs and cinemas has dropped.
Supermarket spending was up 6.6% per consumer in July, compared to June. However, looking back since last year, spending on groceries has actually dropped by -4% per consumer in July 2022, compared to July 2021, suggesting many are looking for cheaper products.
As petrol prices lower across Ireland, the new Revolut data shows that spending on fuel at petrol stations was up 3.9% per consumer in July, compared to June.
Additionally, spending on fuel was up 26% per consumer in July 2022, compared to July 2021. Many took to public transport, as spending on buses was up 6.5% per consumer in July, compared to June, and spending on trains was up 6.6%. Overall, the increase in spending on transport was up 6.3% per consumer in July 2022, compared to June 2021.
As the price of a popular cheeseburger went up to €1.70 in the last week, the new Revolut data shows that spending at fast food restaurants was up 5.7% per consumer in July, compared to June.
As a whole, spending at restaurants rose by 11.3% per consumer in July, compared to June. Additionally, restaurant spending was up 21.6% per consumer in July 2022, compared to July 2021.
New Revolut data suggests holidaymakers are cutting back on parts of their spending, as the prices of holidays go up. The data shows that spending on airlines was up 13.7% per consumer in July 2022, compared to July 2021, spending on cruise lines was up 52.5%, tourist attraction spending was up 19%, and spending on hotels and resorts was up 80.5%.
However, the data suggests some travel-goers are skipping the shops. Airport spending was down -11% per consumer in July 2022, compared to July 2021, spending at duty free specifically was down -18.8%, and spending on car rental hasn’t kept up with inflation and was down -1%. Overall, the increase in spending on travel was up 16% per consumer in July 2022, compared to July 2021.
As inflation rises, we’re not just cutting back on supermarket luxuries. Spending on clothes shopping and leisure activities is decreasing or stagnating. Revolut’s data shows a drop in spending at clothes stores by -5.3% per consumer in July, compared to June, spending at art galleries was down -9.5%, sports club spending down -7%, cinema spending down -6%, and spending at aquariums down -4%.
Overall, spending on entertainment was down -8.2% per consumer in July 2022, compared to July 2021, and spending on shopping hasn’t kept up with inflation and has only seen a rise of 1.7%.
A spokesperson for Revolut said the latest Revolut data suggests that Irish consumers are adapting their spending patterns to cut back on leisure activities such as clothes shopping and days out.
“Many consumers are looking to prioritise spending whilst inflation surges. The data suggests consumers are looking for cheaper brands in the supermarkets in order to keep money aside for treats at restaurants.
“Similarly, the decrease in spending on clothes and days out could be to prioritise travel. After a couple of years of restricted travel, consumers are looking for a summer away. However, they’re being careful as to where they’re spending, focusing their money on hotel and flight bookings, and dodging the airport shops.”
With millions of customers, Revolut is able to provide ultra-fast, high-frequency anonymised and aggregated data on general consumer spending patterns.
Revolut’s data is used by Governments in multiple jurisdictions for analysis and forecasting. In Ireland, Revolut data has been used in a variety of Department of Finance bulletins and was quoted in Budget 2021 forecasts.
Revolut has 1.9m customers in Ireland, where over a third of its 5m population (and half of adults with a smartphone) use Revolut.
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