Extra £18,000 is spent on drinks and snacks this year

Dec 2 2008 by Chris Knox, The Journal

WHILE the economic down turn may be limiting the amount consumers are spending in high street stores , it seems that shoppers in Newcastle are more reluctant to give up their coffees and takeaways.

New figures from Barclays shows that cafes in the city have seen their sales grow by 54% this year as customers spent an additional £18,000 on drinks and snacks – the biggest rise across England and Wales.

The region’s cafe culture has grown dramatically over the last few years and has been helped by Starbucks and Costa Coffee increasing their presence in the North East.

Gillian Bolam, who runs Willis Cafe in Jesmond, Newcastle, said: “There have been a number of shops that have had to closed in Jesmond, and particularly on our street, because of what is happening to the economy.

“However, we are finding that our regulars are not cutting back on their coffees and teas. I think people have their daily traditions and routines and are not letting the downturn change how they behave.”

Proving that the picture is far from bleak across the entire high street, spend on takeaways also increased by more than a fifth, with an extra £50,000 spent on the traditional Saturday night treat compared to last year.

Amanda Shepherd, regional director for Barclays Local Business in the North East, said: “It’s no surprise that Newcastle’s spending habits have been impacted by current consumer uncertainty. This clearly has an enormous knock-on effect for the city’s small businesses.”

However, florists, newsagents, and jewellers are among the smaller businesses feeling the pressure, with purchases of jewellery in Newcastle dropping by 7% this year.

Other sectors struggling to cope with spending cuts are hairdressers and beauticians, as expenditure on hair and beauty dropped by just over 5% or £90,000 over the year.