Save & Splurge Consumer Behaviours
A “save and splurge” mindset defines UK shoppers. Grocery, fashion and beauty remain resilient, and brands must blend value with aspirational retail experiences.
UK consumers in 2026 are continuing to show a clear split in how they spend their money. People are switching between “saving” and “splurging” depending on what’s going on in their lives, and their shopping habits are becoming more considered as they balance what they need now with what matters in the long run.
The result is a stronger “save and splurge” pattern: cutting back on everyday treats and nice to haves, while still happily spending on the things that feel genuinely rewarding.
Even those who feel pessimistic about the economy are still willing to splash out on holidays, premium treats or little luxuries that brighten their day. And with fewer people expecting to own a home or car in the future, the appetite for small indulgences is only growing.
This gives retailers room to play at both ends of the scale, offering great value while also dialling up those accessible luxury moments through thoughtful store design, premium edits, and memorable in store experiences.
Philippa Dempster
Senior Partner | Head of Retail | London Office Managing Partner
Rebecca Pearson
Senior Business Development Manager
Spotlight: Food & grocery
Food & Grocery remains one of the steadiest and strongest categories. While food inflation continues to shape how households budget, the sector is holding firm. Premium grocers and food brands in particular are seeing confident spending, with their customers not only buying more but also being more likely to eat out. Interestingly, online grocery shopping is still far from the norm, with most people sticking to in store shopping. Loyalty schemes are proving to be a big advantage – retailers with strong programmes are consistently outperforming others, and loyalty is expected to matter even more as the year unfolds. (If you want to explore this more, head to our Data Driven Loyalty section.)
Spotlight: Fashion, health & beauty
In fashion, health and beauty, we’re still seeing the influence of comfort and practicality. Athleisure continues to thrive, health and beauty remain high on the priority list, and shoppers are gravitating towards timeless jewellery, practical gifts, second hand finds and more creative gifting – everything from re gifting to personalised presents. It all signals consumers being both savvy and imaginative with their spending.
Style trends are shifting too. Wardrobes are leaning towards modern essentials and easygoing tailoring. In skincare, interest in longevity and anti ageing solutions keeps rising. Brands are also becoming more real and relatable, showing real people in real environments, moving away from high gloss perfection. And with digital platforms and algorithms playing such a big role in what people end up seeing (and buying), discoverability is becoming absolutely critical.
How retailers can thrive
To thrive in this landscape, retailers and brands need to balance value, experience and aspiration. The basics: price, convenience and availability still matter, but the brands that will really win are those that can create meaningful, memorable moments that elevate their offer. As consumer behaviour becomes more complex and more polarised, success will come from being able to serve both the ‘careful saver’ and the ‘selective splurger’, often within the same customer.
Key contacts
Philippa Dempster
Senior Partner | Head of Retail | London Office Managing Partner
Rebecca Pearson
Senior Business Development Manager
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