UK office workers aren’t spending on lunches near their workplaces like they did just after Covid restrictions ended, as inflation crimps budgets.
(Bloomberg) — UK office workers aren’t spending on lunches near their workplaces like they did just after Covid restrictions ended, as inflation crimps budgets.
Workplace foot traffic data only explained about 11% of credit card spending patterns in 2022, compared with over half in the period starting in February 2020 through 2021, according to a report from the Office for National Statistics. The ONS looked at Google Mobility movement trends in workplaces and an indicator of credit and debit card purchases from the Bank of England in its analysis.
“This might be partly because of the end of Covid-19 restrictions, but will also have been affected by inflation,” the ONS said.
People returning to offices in the immediate aftermath of Covid curbs being lifted meant more visits to shops, restaurants and pubs around workplaces. That kind of so-called revenge spending is over. The worst cost-of-living crisis in a generation is now spurring Britons to cut their expenditures — and pack their own lunches.
That’s bad news for already struggling UK retailers. Lower consumer spending, transport strikes and increasing prices are sparking fears of a rising wave of insolvencies as many storeowners struggle to meet payment terms. Claims received by trade credit insurer Atradius for late or failed payments in the retail sector more than doubled in 2022 from a year earlier.
“There are bumpy times ahead for British retailers and hospitality businesses alike,” Owen Bassett, underwriter manager at Atradius UK, said in an emailed comment. “Falling retail sales are a concerning indication that we are likely to see lots of retailers fall victim to the recession over the next few months.”
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.