UK Shoppers Put Savings First Amid Cost-Of-Living Crisis

With the cost-of-living crisis continuing to grip the nation, new research from global marketing group dentsu reveals that British shoppers are redefining their priorities—and savings have taken centre stage.

According to dentsu’s latest Consumer Navigator Report, value for money (52%) and loyalty schemes (44%) now hold greater sway in retail purchasing decisions compared to other industries, significantly outpacing factors such as customer experience (21%), brand heritage (16%), and brand values (15%).

The findings underscore an urgent call for retailers to recalibrate their strategies to meet the shifting needs of cautious consumers who are cutting back on luxury spending but embracing digital commerce in new and meaningful ways.

Navigating Economic Challenges With Value-Driven Strategies

The report highlights the seismic impact of ongoing economic struggles on consumer behaviour: half of UK shoppers (52%) have reduced their spending in the last year, while 80% believe the economy is in a poor state. With 46% of respondents forecasting continued decline over the next 6–12 months, retailers must respond decisively to evolving consumer priorities.

Essentials like groceries (62%) and basic clothing and footwear (35%) are commanding greater wallet share, while bigger discretionary purchases such as designer clothing (70%), new technology (66%), and household appliances (72%) are being avoided. Amid these cutbacks, brands have a critical opportunity to adapt their approach:

• Prioritise Value for Money: Ensure product positioning highlights affordability without compromising quality.
• Strengthen Loyalty Schemes: Create compelling rewards programs that resonate across demographics, especially older shoppers.
• Refine Messaging: Speak to shoppers’ need for savings while offering moments of attainable indulgence to preserve engagement.

The Rise Of Digital Commerce And Social Shopping

Digital channels are reshaping the retail experience as consumers embrace new ways to shop. Dentsu’s research shows that one in five UK shoppers (21%) plan to make purchases directly through social media platforms in 2025. Among Gen Z, this trend rises to 37%, as platforms like Instagram and TikTok become hubs for not just inspiration but transactions.

Websites (45%), applications (28%), and second-hand marketplaces (33%) are also gaining momentum, while two-thirds of shoppers (67%) still value traditional in-store experiences. Retailers must capitalise on these insights by:

• Investing in Social Commerce: Seamlessly integrate shopping features into social platforms and deliver short-form, engaging content.
• Enhancing Digital Convenience: Build intuitive app experiences and streamline online purchase journeys.
• Connecting Channels: Develop omnichannel strategies that bridge the gap between digital interactions and physical stores.

Delivering Flexible And Future-Ready Engagement

Retailers looking to succeed must go beyond offering discounts or temporary measures. In an era where shoppers are focused on overcoming financial strain, dentsu’s report emphasises the importance of forward-thinking strategies that balance short-term relief with long-term loyalty.

Flora Kong, Client Managing Director, at Carat UK&I, a dentsu company said:

“As purse strings tighten, retailers are under immense pressure to deliver meaningful connections and meet shoppers where they are. It’s not enough to simply offer savings – brands need to create value, inspire trust, and build experiences that stand out from the crowd.”

“Winning over consumers in today’s climate means refining digital tools, developing omnichannel ecosystems, and embedding purpose-driven marketing into every interaction. Those who adapt with agility will thrive, while those who fail to keep up risk losing relevance with an evolving consumer landscape.”

Kenyatte Nelson, Chief Membership and Customer Officer at Co-op added:

“As consumers continue to battle the cost-of-living crisis, the retail industry needs to step up and meet them halfway. At Co-op, we firmly believe in the importance of understanding and responding to the needs of our customers – our recent price match initiative, both in stores and online, was a direct result of this. Dentsu’s Consumer Navigator Report provides further evidence that truly listening to the voices of those who shop with us day-in, day-out will set us apart – in both today’s climate and the future.”