Consumers plan for value-first shopping in 2025

New research from American Express highlights how British consumers are shaping their spending priorities for 2025, revealing a strong focus on experiences, a more strategic approach to spending, and an enduring commitment to local businesses. The findings, based on a survey of 2,000 adults, reflect a desire to balance enjoyment with financial caution in the year ahead.

The experience economy

The UK’s growing appetite for experiences—big and small—shows no signs of waning. From music festivals to wellness retreats, dining out, and day trips, British consumers are eager to indulge in life’s moments. According to the survey, nearly 60 percent of respondents plan to spend the same or more on experiences in 2025 compared to the previous year. About 39 percent aim to try at least one new experience annually, while a similar proportion said they prioritise experiences over material possessions.

Younger generations, particularly Gen Z and Millennials, are driving this trend. Over half (56 percent) intend to fill their free time with more experiences in 2025. This desire for immersive and memorable moments is reflective of a broader cultural shift that values personal enrichment over accumulation.

Smart spending in tougher times

While consumers are ready to spend on experiences, they are adopting an increasingly savvy approach to everyday purchases. Half of those surveyed (50 percent) said they would switch retailers for a better deal, while 33 percent would be swayed by specific discounts and offers.

Gen Z and Millennials were particularly diligent, with 73 percent seeking recommendations or conducting detailed research before making big-ticket purchases such as furniture. This trend also encompasses buying second-hand, timing purchases with seasonal sales, and using credit cards that offer rewards or cashback, demonstrating a clear emphasis on extracting value from every pound spent.

Championing local businesses

Support for small and independent businesses remains robust, with 63 percent of consumers emphasising the importance of shopping small throughout the year, not just during seasonal events like Small Business Saturday. The latter continues to be a powerful driver, with 634 million pounds spent in-store and online during the 2024 edition.

Reasons for shopping small range from the personalised experience (50 percent) offered by these businesses to the boost they give to the local high street (53 percent) and a desire to support community initiatives (43 percent). This loyalty is a significant advantage for independent retailers, offering them an edge in building deeper relationships with customers.

Evolving retail expectations

Dan Edelman, UK General Manager, Merchant Services at American Express, believes these findings underscore a new reality for retailers: adaptability and customer-centric innovation are paramount. "The one guarantee with retail is that it never stands still. The retailers that evolve with changing consumer expectations will thrive," he said.

"For small businesses, it’s encouraging to see the enduring affection consumers have for shopping small. These businesses thrive on providing unique experiences and services, which clearly resonate with today’s shoppers," Edelman added.