UK consumers are continuing to spend, but are shopping less often and making more deliberate purchases, according to new data from Cardlytics.

The company’s latest State of Spend report, which analysed March to August spending across 2023, 2024 and 2025, found that retail spend rose eight per cent year on year in 2024 before slowing to four per cent in 2025.

However, the slowdown is being driven less by a collapse in demand and more by a drop in shopping frequency.

Across discretionary categories including fashion, DIY and sporting goods, transactions fell between three per cent and seven per cent in 2025 as consumers reduced the number of times they shopped.

At the same time, average basket values increased by between two per cent and 6 per cent, suggesting shoppers are consolidating spending into fewer, more planned purchases.

Cardlytics said the trends point to a more selective consumer heading into summer 2026, with growth increasingly dependent on retailers being chosen for a smaller number of shopping occasions.

Essential categories have remained resilient, but shopper behaviour is changing.

Digital and delivery grocery spend rose 17 per cent in 2024 and 14 per cent in 2025, while discounter grocery increased 9 per cent and 7 per cent respectively, reflecting continued demand for value-led formats.

However, shoppers are making fewer trips to supermarkets. At major grocers, transaction growth moved from three per cent in 2024 to broadly flat in 2025, while basket sizes rose between four per cent and five per cent.

The data suggests households are shifting towards larger, more planned grocery shops as they look to manage budgets more carefully.

Fuel saw one of the sharpest changes in consumer behaviour. Spend fell five per cent in 2024 and 10 per cent in 2025, while transactions declined four per cent and eight per cent, indicating households are actively reducing usage.

Cardlytics said discretionary retail was becoming more uneven and competitive.

Beauty remained resilient, with spend up 11 per cent in 2024 and 8 per cent in 2025, while online fast fashion rose 14 per cent and 9 per cent, supported by continued transaction growth.

Marketplaces also continued to expand, with spend increasing 13 per cent in 2024 and 6 per cent in 2025, as shoppers turned to flexible, multi-brand platforms.

However, several discretionary sectors saw engagement weaken.

Department store spend fell three per cent in 2024 and four per cent in 2025, while luxury fashion dropped six per cent and eight per cent, with both categories seeing sharper declines in transaction volumes.

Sporting goods shifted from two per cent growth in 2024 to a six per cent decline in 2025, while DIY moved from three per cent growth to a two per cent fall as shoppers pulled back from bigger discretionary purchases.

Lower-cost categories proved more resilient, with books growing 12 per cent in 2024 and 9 per cent in 2025, supported by consistent engagement.

Cardlytics SVP UK partnerships Lucy Whittemore said: “Consumers haven’t stopped spending – but they are becoming far more selective about when and where they do it.

“What we saw across 2024 and 2025 is a clear shift from frequent, habitual shopping to fewer, more deliberate decisions, with each purchase carrying more weight.

“As we look ahead to summer 2026, that fundamentally changes the challenge for retailers. Growth will not come from more demand, but from winning a place in a smaller number of shopping moments.

“The brands that succeed will be those that can demonstrate clear value and show up at the right time, because there are fewer chances to do so.”

Awin UK and BNL solutions client partner Charlie Row said 2025 was the largest year on record for card-linked offers at the business, with growth across categories including beauty, electricals and home and garden.

“This performance reflects a growing confidence among advertisers to lean into CLO as a precision-led channel, particularly in a market where consumers are becoming more selective about how and when they spend,” he said.

“The uplift seen across both sales and revenue highlights how advertisers are increasingly recognising the value of bank-native targeting and real purchase intelligence to reach consumers at the right moment.

“As buying decisions narrow, CLO’s ability to surface relevant, timely offers within trusted banking environments has become a clear differentiator.”

The report suggests grocery retailers are likely to face a more planned and price-sensitive summer trading period, with shoppers prioritising value, convenience and essential purchases over impulse-led spending.

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