The food industry is among the worst hit.
Kevin Jenkins, UK & Ireland managing director at Visa, said, “Consumer spend fell for the third month in a row in July, the first time overall spending had fallen for three consecutive months since February 2013. The figure provides further evidence that rising prices and stagnant wage growth are squeezing consumers’ pockets.
“The drop in spending was felt across a broader range of retail sectors last month, with clothing, household goods, food and transport among the worst hit.”
Although according to Visa International Service Association, there were some bright spots in July, with hotels, restaurants and bars reporting a 6% increase.
“As expected, it’s been a quieter month for us, with sales down 3% on last year. We’re changing our business to accommodate the shift in consumer spending habits and anticipated a slight dip. We’ve noticed that people are either willing to treat themselves to quality meals or looking for a bargain, so our marketing now emphasizes our premium offering,” Josh Beer of Illustrious Pub Company said.
Photo credit: Marketing Interactive
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