Fuel savings fuel wider consumer spending
British shoppers spend fuel savings and more on eating out and online shopping
17 February 2014: The fall in petrol prices drove consumers to pump an additional £12.81 each into the UK economy last month, as they benefited from an extra £19.81 in their pockets.
The figures are based on the card spending data of over 800,000 UK bank customers* during January and have been released by Cardlytics, an advertising and technology company specialising in card-linked marketing, which helps brands deliver rewards to consumers through their mobile and online banking services.
According to Cardlytics data, the fall in prices at the pump meant spending on petrol was down by 13% in January, representing an average fall in spend per UK adult of £19.81 compared to a year ago. In contrast, spending on other products for the same period increased by 4% or £32.62 per person, a net benefit to the UK economy of nearly £13 a head. Most of this additional spend was on eating out in cafes and quick service restaurants, as well as online shopping which saw a 16% increase in spend compared to January last year.
London and Birmingham saw the biggest increase during January, with Londoners spending £44 more than they did last year and Brummies increasing their outgoings by an average of £36. Meanwhile spending in Glasgow remained flat during January, as shoppers took a more conservative approach, only spending the equivalent of what they had saved at the pumps.
Jill Dougan, Managing Director of Cardlytics, said; “Consumers clearly felt buoyed by the fuel savings in January as it prompted them to spend the money they saved and then some more on top. Restaurants and online retailers felt the benefit of this optimism, with spending at quick service restaurants and cafes increasing by more than a quarter (25.8%) on January last year.
“This is great news for retailers more widely as price cuts and increased confidence in the economy is boosting consumer spending, whether it’s a morning coffee or a special purchase for the home.”
*Cardlytics does not have access to any personally-identifiable information such as name, age, gender, address etc. All customer level data remains behind bank firewalls.
Cardlytics is an advertising & technology company and the leader and pioneer in Card-Linked Marketing. Through partnerships with nearly 400 financial institutions, including Bank of America, Lloyds Banking Group, Santander and many others, the company has insight into consumer purchase behaviour, capturing spending across all stores and categories. Cardlytics’ patented technology allows advertisers to make a direct connection to millions of active buyers through multiple digital platforms, including their online banking and mobile banking applications. Cardlytics is headquartered in Atlanta, with offices in London, New York and San Francisco. The company is funded by leading investors in Boston and Silicon Valley, as well as a strategic investment from the world’s leading loyalty company, Aimia.