Flatline in consumer spending expected over Easter bank holiday

Encouragingly, the total number of daily transactions per location rose 23 per cent over Easter last year - averaging 75 per day over the long weekend – up from around 61 payments per day throughout the rest of the month.

High street retailers also recorded consistent numbers of transactions, as well as transaction values, between Easter and the whole of April 2022.

Easter weekend transactions averaged around £29 each, compared with £31 across the whole of the month. The number of daily transactions per location also remained consistent, at around 16 transactions per day, throughout both time periods.

The new findings are based on transaction data from Dojo, which is trusted by over 1 in 10 small to medium high street businesses across the UK.

Jon Knott, head of customer insight at Dojo, said: “With the cost of living remaining high, and economic growth fairly stagnant in recent months, we’re expecting consumers to display a level of caution when it comes to Easter spending.

"That said, our data suggests we will see increased numbers of diners treating themselves over the long weekend, especially with the sunshine forecast.

“Over half of consumers now prioritise spending on experiences as opposed to things, and with competition rife, the challenge for merchants this Easter will be about delivery.

"Those that can provide meaningful experiences, personalised to the consumer and aligned with their heightened expectations will win the race.”

The figures come after the news that March delivered a "sharp shock" to retailers as consumers reined themselves in to cover essential shopping in the face of spiralling cost-of-living pressures.

Footfall across all UK retail destinations fell by 2.8 per cent on the month before - a significant drop from the 9.4 per cent increase seen between January and February, according to MRI Springboard.

Meanwhile, footfall on UK high streets was down 18.7 per cent on 2019 levels and 0.6 per cent below last March.

MRI Springboard said inflationary pressures and interest rates had led to consumer trips now being driven by essential shopping, demonstrated by an annual decline in footfall of 1.4 per cent across UK high streets at the weekend - the first month ever this has occurred.

Diane Wehrle, marketing and insights director at MRI Springboard, said: "March delivered a sharp shock to UK retail destinations with a decline in footfall of 2.8 per cent over the month from February to March, a result that had not been anticipated following an increase in February that more than matched the result for February in previous years.

"For many consumers a period of austerity has started, with the driver of trips now being essential spending rather than experience as many consumers rein in leisure-based trips to destinations to reduce their spending."

Separate figures from accountancy and business advisory firm BDO confirm inflation and a dip in spending hit sales in March.

Total like-for-like retail sales increased by 4.1 per cent on last March, and the fashion sector suffered a slowdown in sales growth, marking its lowest point in more than two years.

Retailers were disappointed by weak growth in online sales, with total non-store like-for-likes increasing by just 2.8 per cent from last March's negative base of minus 10.8 per cent.

Sophie Michael, head of retail and wholesale at BDO, said: "Across the board, inflation is above 10 per cent, and for food it now stands at a staggering 18 per cent.

"This is eating into consumers' discretionary spending and is bad news for the fashion, lifestyle and homewares sectors, as we can see in the March retail sales results.”