UK consumers cut impulse spending, turn to smaller retailers

Research indicates that UK consumers are reducing impulse spending, with many adopting stricter purchasing habits and favouring smaller retailers.

Data gathered by Optimizely from a survey of 1,000 UK consumers has found that two-thirds, or 66%, are making fewer impulse purchases as cost-of-living concerns and minimalist attitudes influence shopping behaviours.

One of the key findings is that almost one in three shoppers - 30% of respondents - have committed to a "no-buy" year, choosing to purchase only essential items. This trend shows both a financial and lifestyle shift among consumers.

Additionally, 29% of those surveyed have uninstalled a retailer's app from their devices to avoid temptation and reduce the likelihood of unplanned spending. Such moves suggest a deliberate attempt by consumers to manage and control their spending environments more tightly.

The shift in consumer behaviour extends beyond just what people buy, affecting where they choose to shop. Nearly a third, or 31%, of respondents said they are moving away from large online retailers and instead opting for smaller, independent brands. This result suggests purchasing decisions are not based solely on cost factors but are increasingly associated with value-driven motives and a desire for more mindful consumption.

Optimizely's research also included a survey of 100 marketers, which revealed that the current climate is making it increasingly challenging for brands to engage with prospective customers. According to the findings, a quarter (26%) of UK marketers now believe consumers have become significantly more difficult to engage.

"Today's consumers are becoming far more intentional with their shopping habits. Whether that's cutting back to save money or embracing a more minimalist mindset, people are purchasing less. For brands, this is both a challenge and an opportunity. In a period of low consumption, digital experiences need to deliver real value, personalisation, and above all, trust. Brands that get this right will stand out, even when people are buying less," said Tina Nelson, Product Strategy Director at Optimizely. 

The findings present a complex environment for marketers who must adjust to this new landscape. With discretionary spending declining, conventional promotional tactics may prove less effective as consumers exercise greater caution and intentionality in their buying decisions.

Minimalism and cost of living

The research indicates a convergence between financial pressures and a broader shift towards minimalism. As individuals face increased everyday costs, they are reassessing what is necessary and adopting shopping behaviours that reflect an intent to minimise consumption overall.

This move towards intentional consumption is having a direct impact on brand loyalty and retailer choice. The preference for smaller, independent brands may reflect consumers' desire for more meaningful transactions, local engagement, or perceived ethical practices, suggesting the trend is not solely about expenditure reduction.

Changing marketing approaches

Brands are under increasing pressure to adapt to a consumer base that is both restrained and motivated by values beyond price. Personalisation, relevance, and trust are among the qualities participants identified as critical to maintaining engagement.

The minority of consumers still open to discretionary spending are presenting more selective behaviour, raising the bar for marketing messages and requiring brands to demonstrate concrete value.

Retailers and marketers are likely to continue monitoring these changing habits closely, seeking new approaches to maintain relationships with a consumer base that is becoming harder to reach and even harder to influence.