Summary
This report presents the Cardlytics analysis of consumer spending patterns in the UK for Q4 2025 and early Q1 2026. It outlines a notable shift in consumer behavior towards more controlled spending, where shoppers are increasingly deliberate about their purchases. The analysis draws on transaction data from over 23 million bank accounts, indicating that consumers have become more selective in their spending, particularly in the context of rising inflation and cost pressures. The report highlights that even during the festive season, consumers prioritized value over convenience, with spending at discount grocery stores increasing while larger grocers saw declines. Additionally, the analysis reveals a structural change in fashion spending, with consumers opting for resale marketplaces and smaller purchases instead of luxury or fast fashion items. The findings suggest that businesses need to adapt to this new consumer mindset by providing clarity and value in their offerings to retain customer engagement in the coming quarters.
