UK consumers did not loosen the purse strings at Christmas. Instead, they tightened them. New data from Cardlytics, which analysed 23 million UK bank accounts, shows that festive trading reinforced value-led behaviour rather than relaxing it. Luxury saw smaller baskets, fast fashion declined while shoppers were prioritising discounters and resale platforms.
Even at Christmas, grocery followed the value rules
Christmas is traditionally when shoppers prioritise convenience and familiarity over price. This year, that pattern broke. In the final week before Christmas, discounter grocery spend rose 3% year-on-year, while big grocers declined 2%. Across December, discounters finished up 1% while big grocers fell 2% and overall spend declined 1%.
The fashion ladder is breaking
December revealed a structural reset in fashion spend. Luxury and designer fashion fell 12% year-on-year. Department stores declined 6%. Even online fast fashion dropped 10%. Meanwhile, resale marketplaces such as Depop and Vinted grew 4%.
Rather than trading down within the traditional hierarchy, many consumers are opting out of it altogether, choosing “new-to-me” purchases that feel more intentional and easier to justify in tighter budgets.
Smaller baskets, more deliberate choices
It may seem that consumers are disengaging from spending. They are not, though they are managing risk much more.
Across December, bookshop spend rose 4%, while resale marketplaces contributed almost £8m in incremental spend with average basket values around £21-22. Digital and delivery grocery grew 10%. By contrast, makeup fell 9%, electricals declined 4% and high street furniture dropped 2%.
Growth concentrated in categories that felt manageable and defensible, while higher-commitment purchases remained under pressure.
What this means for Q1 and beyond
The data suggests this is not a temporary slowdown but a structural recalibration. Consumers are planning further ahead, questioning defaults, and spreading spending more evenly. Traditional peak moments are losing some of their automatic pull, while clarity of value and relevance are becoming more important.
Christmas is traditionally when spending rules soften, but this year we saw the opposite. Consumers did not disengage; they recalibrated. They are questioning defaults, stepping away from automatic brand loyalty, and choosing formats that feel easier to justify. In 2026, growth will favour brands that help shoppers feel in control.
– Lucy Whittemore, SVP, UK Partnerships, Cardlytics
