Want to know how consumers plan to prioritise their spend in the year ahead? Of course you do. It won’t come as a great surprise but shoppers want more bang for their buck, which strongly guides their buying decisions, they will continue supporting local, independent small businesses and for entertainment they’ll continue to look for an experiences-filled 2025.

That’s according to American Express and the 2,000 adults it surveyed, although the financial giant did add the survey doesn’t reflect its own customer spending data or trends.

Doing research

And now for the detail. Britons will be taking an increasingly savvy approach to their spending, with 50% of all respondents saying they will buy from alternative retailers if they feel they can get a better deal elsewhere. Exactly a third say they would be encouraged to do so by specific offers. 

Shoppers also plan to lean into ways of achieving greater value for money this year, compared to last year; 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.

Furthermore, 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. Almost three quarters (73%) of this age group said they either always or sometimes seek recommendations in advance.

Support for shopping small 

The research showed that affection for the UK’s small businesses remains strong, with 63% of consumers believing it’s important to support these businesses all year round, and not just during seasonal peaks like Small Business Saturday, which in 2024 saw a collective £634m spent in-store and online, its data shows.
 
Consumers highlighted various reasons why they would continue shopping small, including how these businesses boost the appeal of their local high street (53%), the personalised experience they enjoy when shopping (50%); and a desire to support their local community (43%).

Experience-hungry Britons

With many major shopping centres having geared up to the experiences trend since the pandemic, this is set to continue with consumers’ love of experiences big and small, such as dining, day trips, wellness activities and festivals is set to continue into 2025.

Some 59% plan to spend the same amount or more on experiences this year, compared to last, 39% say they like to try at least one new experience every year and a similar proportion (38%) said they prioritise spending on experiences over material items. Again, Gen Z and Millennials lead the way here willing to spend more on this category with over half (56%) intending to fill their free time enjoying more experiences during 2025.

Dan Edelman, UK general manager, Merchant Services at American Express, said: “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.”