Report Finds UK Fashion Spend Growth Slows, Shoppers More Selective

Why It Matters

The shift toward fewer, higher‑value purchases reduces the addressable market for mass retailers and forces brands to compete for limited buying moments, reshaping marketing and inventory strategies across the UK fashion sector.

Key Takeaways

• Online fast‑fashion spend up 9% in 2025, driven by transaction volume
• High‑street fashion growth slowed to 4% in 2025, ATV rose 4%
• Luxury fashion spend fell 8% in 2025, with fewer shoppers
• Overall retail spend grew 4% YoY in 2025, while transactions declined
• Retailers must win fewer, higher‑value moments to drive growth

Pulse Analysis

The Cardlytics State of Spend report highlights a nuanced evolution in UK fashion consumption. While online fast‑fashion continues to expand—up 9% in 2025—the growth is rooted in a higher frequency of smaller purchases rather than larger baskets. This pattern reflects a broader consumer mindset that favours rapid, low‑cost updates but remains price‑sensitive, keeping average transaction values on a modest decline. For brands, the key is to optimise digital touchpoints that capture these incremental sales without inflating acquisition costs.

Conversely, traditional high‑street retailers are seeing a slowdown, with growth slipping to 4% and transaction counts plateauing. The modest rise in average spend per visit suggests that shoppers who still frequent brick‑and‑mortar stores are allocating more budget per trip, likely prioritising quality or essential items over impulse buys. Luxury and designer segments face the steepest headwinds, with an 8% spend contraction and a near‑double‑digit drop in transaction volume. The data points to a concentration of discretionary spending among a narrower, wealthier cohort, forcing premium brands to double‑down on personalised experiences and exclusive offerings to retain relevance.

For the industry, the overarching implication is a transition from volume‑driven growth to value‑driven capture. Retailers must sharpen timing, relevance, and perceived value in the limited shopping moments that consumers now deem worth pursuing. Leveraging predictive analytics, hyper‑targeted promotions, and omnichannel cohesion will be essential to win the reduced but higher‑stakes purchase occasions that will define fashion retail performance through 2026 and beyond.