LONDON (Reuters – British people shunned eating out at restaurants and hotels as Omicron coronavirus spread. Instead, they opted to eat in their own homes ahead of Christmas.

Barclaycard, the payment card provider, stated that strong supermarket shopping led to a 12.2% jump in consumer spending in December 2019 compared with its level before the pandemic.

In contrast, restaurants and hotels saw a decrease in spending, with the former falling by 14.1%.

According to a different survey by the British Retail Consortium, (BRC), retail sales values increased 2.1% over a previous year. Meanwhile, food sales grew on a strong December 2020 performance.

Jose Carvalho of Barclaycard, the head consumer products, stated, “Britain was either choosing to remain at home or isolating themselves from their surroundings due to this new variant which made it difficult for face-to-face retail as well as leisure and hospitality outlets to compete.”

There were however some positive points. As shoppers filled up their carts with food, drink, and enjoyed the holiday season with friends and family members, spending on essentials grew.

Clothing stores were the highest performing sector in December according to The BRC. Fashion chain Next saw its profit outlook for the full year rise last week due to a strong Christmas period.

Despite retailers doing well overall in 2021, the BRC warns that consumers will be squeezed due to rising inflation, higher energy costs, and increased taxes.

According to the Bank of England, consumer price inflation is expected to reach 6% in April. This will be its highest level in thirty years. Workers are also due see an increase in their social security payments.

Helen Dickinson (BRC chief executive) stated that “retailers will need to be resilient and agile if they are to weather the storm ahead.”