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UK Consumer Spending Report
View our latest insights on how spending patterns are changing across the UK.
Barclays UK Consumer Spend Report gives you a unique and up to date picture of the nation’s spending habits based on the actual transactions, bringing it to life so you can take action and shape your strategy.
Our latest report looks at UK consumer spending patterns for the 25th December 2024 to 24th January 2025.
January key insights
Overall consumer spending bounced back in January, as consumer confidence in non-essential spending held strong despite budgets remaining tight. This was reflected by strong performances in sectors prioritised by consumers such as entertainment, health and wellness.
Head of Client Insights, Barclays
Essential card spending increased by 0.1% in January 2025 when compared to this time last year, marking the first increase since August 2024 (1.6%). This comes as spending in Grocery and Public Transport, both Essential categories, increased compared to previous months.
Non-Essential card spending increased by 2.7% in January 2025 when compared to this time last year, an uplift compared to December 2024 (2.2%). This comes as consumers continued to prioritise spending on things they love, such as entertainment and wellness, whilst cutting costs elsewhere.
Fuel spend growth was -5.8% in January 2025, as we are still providing a comparison with a period when fuel prices were higher due the invasion of Ukraine this time last year. However, the spend growth is higher than it was in December 2024 (-10.7%), as fuel prices increased over January.
Strong performance from Pharmacy, Health & Beauty retailers boost Retail spend, whilst consumers spend more on at-home experiences
Overall Retail spending increased by 1.2% in January 2025 when compared to this time last year, an uplift compared to December 2024 (0.5%). The growth was predominantly driven Pharmacy, Health & Beauty retailers who had their strongest month of growth (10.7%) in almost three years. On the other hand, spend at Clothing retailers and Departments Stores fell in January 2025, at -0.7% and -0.2% respectively. This comes as consumers looked to cut back in certain areas of non-essential spending, with the colder, wetter weather in January also hampering high-street spending.
Spend in the overall Hospitality & Leisure sector also increased in January 2025, up 5.3%, representing an uplift compared to December 2024 (3.9%). This increase was driven by a rise in spend on ‘Insperiences’ (at-home experiences), such as streaming services and takeaways, as consumers opted to shelter from the weather and enjoy cosy nights in. Bars, Pubs & Clubs also had a positive month, despite many consumers partaking in ‘Dry January’, whilst the Entertainment sector carried on its strong performance from 2024, with the latest releases such as ‘Mufasa: The Lion King’ and ‘Sonic the Hedgehog 3’ luring viewers to the cinemas.
Hospitality and Leisure
The performance of Bars, Pubs & Clubs unhampered by ‘Dry January’
Despite the fact that one third (34%) of consumers significantly cut back on their alcohol consumption in January 2025, Bars, Pubs & Clubs still enjoyed growth of 2.6%, an uplift compared to December 2024 (1.3%). This suggests that the industry was able to respond to the growing popularity of Dry January as well as consumers’ shifting preferences, such as the rise of low and no alcohol alternatives. **
Meanwhile, after a stellar performance in 2024, the Entertainment sector started the year strong, with spending rising by 8.1% in January 2025, an uplift compared to December 2024 (6.5%). This was driven by an increase cinema spending, up 15.1% in the month, as the latest releases such as ‘Mufasa: The Lion King’ and ‘Sonic the Hedgehog 3’ lured in viewers.
Spend in the overall Travel sector also remained strong, at 5.5% in January 2025, on par with spending in December 2024 (5.4%). The growth this month was predominantly driven by spend at Airlines which grew 5.5%, up compared to December 2024 (4.4%), as consumers booked their 2025 getaways.
The cold weather in January boosted spending on at-home experiences such as Takeaways & Fast Food and Digital Content & Subscriptions, whilst the Entertainment sector had another strong month, as consumers enjoyed the latest releases at cinemas.
Head of Hospitality and Leisure, Barclays Corporate Banking
Spend on at-home experiences rise as consumers enjoy nights in
Spend on ‘Insperiences’ (at-home experiences) increased by 6.3% in January 2025, the largest uplift in this category since February 2024 (6.5%), as consumers opted to shelter from the colder weather indoors.
This was reflected in the Digital Content & Subscriptions category with spend rising by 8.3%, an uplift compared to December 2024 (7.8%), with one in five (19%) consumers saying that January’s weather led them to use their entertainment subscriptions more than usual. Takeaways and Fast Food also had a strong month with spend rising by 5.1%, the largest year-on-year uplift since January 2024 (5.5%). **
Retail
The influence of social media and wellness boosts Pharmacy, Health & Beauty retailers
Pharmacy, Health & Beauty retailers had their strongest month in almost three years, with spend rising by 10.7% January 2025. This comes as 19% of consumers say they have been influenced by social media to make a purchase, rising to 40% for Gen Z. Across all ages, 20% of this group were influenced by beauty and skincare content. 41% of consumers also recently spent on popular wellness trends, with this rising to 67% for Gen Z. **
On the other hand, spending at Clothing retailers and Departments Stores declined by -0.7% and -0.2% respectively. This comes as 49% of consumers plan to cut back on non-essential spending, with 54% of this group looking to cut down on new clothes and accessories purchases. **
37% of consumers also said that the colder weather in January impacted their spending, with 13% of consumers opting to do shopping from the comfort of their homes, rather than in-store. This was reflected in the rise of online retail spend share, which reached a three-year high of 58% in January 2025. **
Pharmacy, Health & Beauty retailers had their strongest month in almost three years, with social media playing a huge role in influencing consumer spending. The colder weather also encouraged consumers to shop from the comforts of their homes in January, hampering high-street footfall.
Head of Retail and Wholesale, Barclays Corporate Banking
Consumers shop local despite conscientious consumption
Spend growth at Supermarkets increased by 1.0% in January 2025, an uplift compared to December 2024 (-1.3%). However, 86% of consumers remain concerned about rising food prices, with 64% looking for ways to get more value from their weekly shop. **
Of those cutting costs, 51% of consumers made use of loyalty schemes and deals, with 27% of this group buying discounted items such as “wonky” vegetables, and 16% opting for the festive food offers after Christmas. Despite this conscientious consumption, Food & Drink Specialist stores saw a boost of 3.9% in January, suggesting that consumers are prioritising shopping at local and/or independent stores.
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We can help you keep up-to-date with spending trends, monitor your market position and enhance your understanding of customer behaviour, based on actual customer spending.
Leveraging anonymised data from our 250 million monthly customer transactions in the UK can help you understand who your customers are and how, when, and where they spend.
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Appendix
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Spend growth Transaction growth Essential 0.1% -1.1% Non Essential 2.7% 3.9% Overall 1.9% 1.9% Retail 1.2% 0.2% Clothing -0.7% 2.8% Grocery 1.3% -0.7% Supermarkets 1.0% -0.5% Food & Drink Specialist 3.9% -2.1% Household 0.0% 5.3% Home Improvements & DIY -2.7% -5.2% Electronics 2.7% 15.9% Furniture Stores 0.5% 1.5% Garden Centres -0.8% -1.5% General Retailers 0.8% 0.1% General Retailers & Catalogues 0.9% -0.5% Department Stores -0.2% 1.9% Discount Stores 1.4% 1.1% Specialist Retailers 4.9% 0.9% Pharmacy, Health & Beauty 10.7% 2.2% Sports & Outdoor -1.7% -2.5% Other Specialist Retailers 3.2% 0.2% Hospitality & Leisure 5.3% 4.7% Digital Content & Subscription 8.3% 7.5% Eating & Drinking 3.4% 3.3% Restaurants, Cafes and Bakeries 2.6% 0.5% Bars, Pubs & Clubs 2.6% 1.8% Takeaways and Fast Food 5.1% 7.3% Entertainment 8.1% 12.0% Hotels, Resorts & Accomodation 5.5% 1.7% Travel 5.5% 3.3% Travel Agents 5.8% 13.5% Airlines 5.5% -0.5% Public Transport 1.9% -1.8% Other Travel 8.4% 13.6% Other -1.4% 1.2% Fuel -5.8% -3.1% Motoring -7.1% 4.7% Other Services 3.3% 4.3% Insperience 6.3% 7.2% Online 3.0% 4.7% F2F 0.8% 0.6% -
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Data source
Barclays debit card and Barclaycard credit card transactions in the UK.Data range
The spending data in this report relates to the period 25th December 2024 to 24th January 2025.
Inclusion criteria:
Customers aged at least 16 in the relevant period. Active customers using card payments in the relevant period (excluding spending on banking products, i.e. mortgages, loans, savings, utilities, tax and gambling).Spending growth calculation:
Percentage difference between total spend per customer in the period 25th December 2024 to 24th January 2025 and total spend per customer in the period 25th December 2023 to 24th January 2024.Spending categorisation:
- Essential: Childcare, healthcare, insurance, grocery, fuel and public transport spend.
- Other food and drink: cafes, bakeries and any other food and drink establishments that cannot be classified.
- Entertainment: gym memberships and leisure activities such as cinema, family days out, sports and theatre.
- General retailers: selling a wide range of different products, e.g. department stores, catalogue shops, online marketplaces.
- Specialist retailers: selling a particular category of goods, e.g. toy shops, jewellers, sports shops.
- Other services: education, legal, insurance, childcare, post office / delivery, charities and personal services, e.g. hairdressers.
- Insperience: Digital Content & Subscriptions, Takeaways & Fast Food, Hobbies, Crafts & Collections and Online Food & Drink Specialist retailers.**
Note: Starting October 2024, Barclays will report the growth of consumer spending on ‘Restaurants, Cafes and Bakeries’, which is a combination of two former categories: ‘Restaurants’ and ‘Other Food and Drink’. Distinctions between established restaurant chains (previously reported as ‘Restaurants’) and other forms of eateries (e.g. independent restaurants, food stalls, caterers and cafes – previously reported as ‘Other Food and Drink’) have become increasingly blurred, and Barclays believes that the combined ‘Restaurants, Cafes and Bakeries’ category is a better representation of consumer spending on dining out more broadly.
*CPIH: Consumer Prices Index^ including owner occupiers' housing costs,
** Denotes a comment from the consumer confidence survey. The consumer confidence survey in this press release was carried out between 24th and 29th January 2025 by Opinium Research on behalf of Barclays. There were 2,000 respondents, providing a representative sample of UK consumers by age, gender, region, and income group.
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