The State of Spend: Retail Report by promoting and know-how firm Cardlytics analysed spending developments from greater than 24 million UK financial institution accounts over January, February and March within the final three years, from 2023 to 2025.
It discovered that division retailer spend declined 4% in 2024, in contrast with 2023, and an additional 5% in early 2025, “reflecting the challenges of a one-size-fits-all mannequin in a market the place customers are searching for out extra focused, brand-led propositions”.
On-line quick style, after flatlining in 2024, bounced again with a 13% uplift in Q1 2025, the report mentioned, pushed by discount-led promotions and the return of trend-led shopping for.
The report additionally discovered that buyers are nonetheless energetic however are making use of extra scrutiny to the place and the way they spend. It mentioned: “From value-driven and feel-good spending in style and wonder, to extra cautious grocery procuring and more and more selective funding in family necessities, the report has revealed client habits are evolving, and types should sustain.”
Lucy Whittemore, SVP UK partnerships at Cardlytics, mentioned: “We’re seeing a extra discerning client – nonetheless spending however doing so extra selectively and in search of clear worth, trusted manufacturers and a way of reward. Bodily retail is regaining momentum for manufacturers providing one thing distinctive, and in a extra aggressive, cautious surroundings, loyalty gained’t be gained by value alone. Focused gives, personalised rewards and a transparent model proposition might be key.”
