UK Shoppers Are Eager to Spend, but with More Caution and Focus, According to Cardlytics Report

Recent studies show that UK shoppers are returning to a spending mindset, as confirmed by a new report. However, they are more discerning and will only spend if the price is right, focusing on making thoughtful purchase decisions.

The Evolving Spending Behavior

Cardlytics, an advertising platform that analyzes spending data from over 24 million UK bank accounts, states that consumers are now more cautious after a period of post-pandemic adjustment. The platform’s latest findings reveal that spending growth is primarily happening in sectors such as fashion and beauty, driven by a preference for quality, convenience, and affordable indulgence.

Shoppers Are More Value-Driven

The State of Spend: Retail Report suggests that consumers remain active, but they are applying more scrutiny to their spending choices. The study examined consumer behavior across three key categories: retail, grocery, and household items. The findings highlight a shift towards value-driven shopping in fashion and beauty, as well as more cautious grocery purchases and selective spending on household essentials. This shift presents challenges for brands, which must adjust to changing consumer priorities.

Fashion and Beauty: The Bright Spots

When it comes to fashion and beauty, the report points out that high street fashion and beauty categories continue to perform well, bolstered by brand loyalty and the desire for small, feel-good purchases. In the first quarter of 2025, beauty spending rose by 5% year-on-year, with transaction volumes growing faster than spend. This trend suggests that consumers are indulging in smaller, more frequent purchases, echoing the