UK households’ shopping habits are shifting, according to new research from Cardlytics.
The platform’s State of Spend report, which analysed consumer data across Q4 2025 and early Q1 2026, found that across the festive season, UK shoppers spent more thoughtfully, switching impulse for more deliberate decision-making.
This data came against a backdrop of rising inflation, which increased to 3.4% in the 12 months to December.
The research, which looked at card-based transaction data from over 23 million bank accounts, showed that while festive spending held, loyalty and default behaviours weakened. Instead, shoppers zoned in on sensible spending, switching formats, trading down and filtering purchases.
This trend was witnessed across different categories, from grocery to fashion.
Big grocers declined 2% during December, luxury and designer fashion spend fell 12% year-on-year, and department stores declined 6%.
A similar drop played out across online fast fashion — a segment which has previously benefited from the Christmas rush — which dropped 10%, meaning there’s more than just price-chasing at work.
Comparatively, discounter grocers and resale marketplaces came out on top.
In the week commencing 18 December, spend at the former rose 3% year-on-year, finishing up 1% year-on-year. Meanwhile, resale marketplaces grew 4%.
According to Cardlytics, this isn’t a blip, but a sign of a more structural shift.
Consumers are engaging in Christmas shopping earlier, with spending spread out more evenly, and less splurging, signalling a “broader desire for control.”
Cardlytics said that the findings “put the onus” back on business to earn every transaction, with big moments, brands and discounts no longer having the pull they once had.
With short, high-intensity promotional spikes becoming less effective, growth is more likely to favour sectors and formats that earn a consistent place in everyday budgets, as well as businesses that help customers feel “in control,” it said.
“Our Q1 data shows that consumers are not disengaging from spending, but they are managing risk far more deliberately. The absence of a traditional Christmas peak reinforced that discipline,” said Lucy Whittemore, SVP of Partnerships at Cardlytics, in a statement to Hello Partner.
This has clear implications for affiliate marketing, she said.
“Performance can no longer rely solely on peak moments or broad discounting. As shoppers become more selective, formats that align closely with purchase intent and deliver tangible value will outperform.”
According to Whittemore, affiliates that surface timely, data-led, relevant offers at the point of decision, particularly in value-led categories such as discounters, digital grocery and resale, will be “better positioned to convert.”
“In this environment, success depends less on driving impulse and more on supporting confident, measured decisions,” she added.
