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Clothing a key spending category as UK retail industry gets more optimistic

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WRITTEN BY
SkYWIRE
Posted
August 20, 2025
Jul 18, 2025

Fears of a slowdown in expenditure among British consumers may be at least partly unwarranted, according to one survey’s just-released findings. 

As reported by Fashion Network, a new poll has found that 38% of Britons claim to be buying more with their disposable income right now than in the past year. 

Even more hearteningly for many clients of our own digital marketing agency for luxury brands, clothing purchases appear to be among the highest priorities of such customers. 

What was revealed in the new study about UK consumer expenditure? 

Bauer Media Outdoor recently surveyed about 2,000 people. It was discovered through this research that 36% of Britons reported having looser budgets and a greater tendency to treat themselves than was the case during 2024’s corresponding period – a 20% year-on-year rise. 

It has been claimed, too, that the UK retail sector is “leaning towards optimist”, with 18% of people devoting most of their money to clothes shopping. Approximately a quarter (26%) of those questioned said they spent their disposable income on clothing, which made it the second most popular way to spend extra funds, beaten only by travel (33%). 

Bauer stated that such data indicated consumers were “returning to high streets”, amid hopes that shopper confidence could be on the up despite a still-fragile and uncertain economic outlook. 

Have all demographics been spending in the same way lately? 

The short answer to that question seems to be no. 

Bauer’s research found that Millennials, for instance, ranked clothing (37%) and travel (30%) as their top priorities for expenditure. For Generation Zers, though, snacks (32%) and entertainment (26%) were particular areas of focus in how they used their disposable income. 

As for those surveyed who were aged 35 and over, most of their disposable income was put towards travel, a preference that Bauer noted went up with age. 

There are also different drivers for spending among different groups 

The shoppers questioned were also asked about their motivations for spending their disposable income. 32% of respondents stated that they made such purchases to help boost their mood, while 31% indicated a wish to seek out new experiences. 

23% of the survey participants suggested they were driven to spend by an interest in self-improvement, and 19% cited the pursuit of social connection. 

Again, intriguing differences were observable across the generations. The mood-boosting benefits of spending, for example, were prioritised by 32% of respondents in the 18-to-24-year-old bracket, and 34% of 55-to-64-year-olds, although the proportion jumped markedly further to 41% among those aged from 45 to 54 years old. 

It was impressive, meanwhile, that a whopping 45% of 25-to-34-year-olds claimed they spent their disposable income in pursuit of self-improvement. However, for 38% of those aged from 35 to 44 years old, as well as 21% of the 65-years-and-older cohort, the opportunity for new experiences was the principal driver of their supplementary expenditure. 

Interestingly, the research also found that around a fifth (19%) of people spend their disposable income on their partner. This compares to the 29% of those surveyed that stated they spent their disposable income on themselves, and 28% saying they spent their extra cash on their children. 

You could be just a few steps away from a much-enhanced online presence for your brand

If you are interested in learning more about how you can help achieve the best outcomes for your organisation by capitalising on consumer spending patterns like those described above, please don’t hesitate to reach out to our widely trusted digital marketing agency for luxury brands, fashion players, and lifestyle businesses. 

Photo by Korie Cull on Unsplash

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