By Rob McLaren, Insight Manager
As Christmas trees come down and Brits return to their offices, a sense of normality is returning for many. But for retailers, uncertainty remains.
Barclays card data suggests that UK card spending fell by 1.1% in November compared with the year prior – the largest such year-on-year decline since February 2021, when the nation was under a strict lockdown. In December, shopper numbers were down 2.9% vs. 2024, according to the British Retail Consortium, which cited Budget uncertainty and suggested shoppers were instead waiting for January sales.
This points to declining consumer confidence as we enter Q1 2026. Using data from the7stars’ quarterly tracker, the QT, and open banking data from Gravity Connect, three consumer spending trends emerge.
Clothing purchases down as Brits shift to second-hand
Gravity Connect spend data reveals that Brits spent 12% less on clothing in November and December 2025 compared with the same period in 2024. This trend was consistent across most of the country, with four in five postal areas reducing outlay. And even as total spend was higher during the week of Black Friday, this still represented a 17% decline vs. the comparable week, one year prior.
As new fashion sales drop, second-hand or ‘pre-loved’ sellers are the big winners. Vinted continued its rapid rise in 2025, with revenue topping €1bn for the first time, up to a 40% year-on-year increase. According to eBay’s recent Recommerce Report, Gen Z and Millennials are leading the pre-loved revolution, while over one-third of consumers report buying pre-loved goods at least monthly.
Brits continue to safeguard travel
In Q4, holidays and short breaks remained the big-ticket purchase on which Brits most intended to spend, with 57% intending either to increase or to maintain their spend in the category. This is backed by the Barclays card data, which found travel agents received a 10.7% Black Friday boost in November.
Ever since the nation returned from lockdown, more than four years ago, a consistent theme in our QT data has been a continuing demand for travel. Indeed, in line with an ongoing need for in-person experiences, Brits have told us they intend to protect travel spend at all costs. This has persisted through multiple periods of budget uncertainty and low consumer confidence and is likely to continue in 2026.
Subscriptions and party food prosper as Brits seek small luxuries
Another area in which Brits continue to voice confidence is streaming services. In Q4, 58% of respondents to our QT said they intended to spend the same or more on entertainment subscriptions. As subscription prices increase, a growing percentage of Brits are shifting to streamers’ budget-friendly tiers, with Netflix, Amazon Prime and Disney+ all posting record years for their ad-supported offerings.
Together with an uptick in supermarket food and drink sales, this suggests Brits are continuing to prioritise small luxuries in the face of growing uncertainty. M&S has reported ‘record’ Christmas sales, with premium party food ranges leading growth. As temperatures drop below freezing, it seems many Brits are opting for canapés and a choice of streaming services to keep their spirits high.
Much uncertainty persists over the state of the economy but, as recent spend data shows, retailers can be certain that the fight for consumers’ minds and wallets remains as tough as ever.
