Brits looking for “better deals” in 2025

New research from American Express reveals that UK consumers are taking an increasingly savvier approach to their spending, while others are looking to shop small and local and search out experiences.

The survey, conducted by Opinium, asked 2,000 adults in the UK about their current spending habits and preferences, as well as their intentions for the year ahead. It found that shoppers want “more bang for their buck,” and they are becoming savvy with their spending, with half of all respondents stating they will buy from alternative retailers if they feel they can get a better deal elsewhere, with a third (33 percent) adding they would be encouraged to do so by specific offers.

With the cost-of-living crisis still front and centre, the research notes that shoppers plan to lean into ways of achieving greater value for money this year, compared to last, such as buying pre-loved items, maximising seasonal sales, and using payment cards that offer rewards and points on their purchases were among the top-ranked tactics.

In addition, Gen Z and Millennial shoppers ranked as the most thorough when it comes to their research before spending, particularly if planning to purchase big-ticket items like furniture. Almost three-quarters (73 percent) of this age group said they either always or sometimes seek recommendations in advance.

Consumers this year will also continue to support local, independent small businesses, with almost two-thirds (63 percent) believing it is important to support these businesses all year round and not just during seasonal peaks like American Express’ Small Business Saturday initiative, which in 2024 saw a collective 634 million pounds spent in-store and online.

When asked why they wanted to shop small, 53 percent said they like how these businesses boost the appeal of their local high street, while 50 percent said they enjoy the personalised experience when shopping local, and 43 percent said they want to support their local community.

The final trend is consumers looking for experiences big and small in 2025, such as dining, day trips, wellness activities and festivals. Almost six in 10 (59 percent) are planning to spend the same amount or more on experiences this year compared to last. About two in five (39 percent) say they like to try at least one new experience every year and a similar proportion said they prioritise spending on experiences over material items (38 percent).

Gen Z and Millennials were the largest cohort anticipating spending more on this category – over half (56 percent) intend to fill their free time enjoying more experiences during 2025, according to the research.

Dan Edelman, UK general manager of merchant services at American Express, said in a statement: “The one guarantee with retail is that it never stands still, and it’s the retailers who best meet ever-evolving customer expectations that will succeed. Our research identifies some distinct priorities that are likely to influence consumer spending behaviour in the months ahead.

“For small businesses, it’s hugely positive to see continued recognition of, and affinity for, shopping small highlighted by the research. Small businesses pride themselves on the unique experiences and service they offer, something that clearly appeals to consumers.”