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Sandra Halliday Published
June 12, 2025
Reports around online shopping have painted a bleak picture of the channel in recent periods but a new study shows that “despite stubbornly high inflation, UK shoppers’ online spend intentions remain resilient, with younger consumers exhibiting the greatest levels of confidence”.
That’s according to performance marketing tech specialist Wunderkind. It found some shoppers cutting back and some focusing on cheaper goods. But there’s also a trend in which many are buying fewer but better quality non-essentials.
It spoke to 1,000 UK shoppers and found that while 30% plan on cutting back on essentials, 42% say they plan to maintain their usual levels of online spending, with Gen Z the least likely demographic to reduce spend. Just 22% of Gen Z said they felt the need to cut back on discretionary spending.
The issues confronting UK consumers are huge and they’re leading almost a third (30%) to plan cutbacks on essentials. That has already seen many people switching from established brands to own-brand grocery products, and spending more in discount stores.
In apparently bad news for the fashion industry, Wunderkind said that 54% of the people it polled will limit their spending cuts to luxury items, with 64% cutting back on non-essential, discretionary items.
Yet online fashion shopping remains a priority for many. As mentioned, that sizeable 42% who plan to maintain their usual levels of e-commerce spend are encouraging. Additionally, 42% of UK shoppers claim that they’ll spend less often but they’ll buy higher-priced, better-quality items when they do make a purchase. This is compared to 36% who’ll buy more affordable or lower-quality items.
That contrast is particularly significant given it's not so many years ago when tough times would have seen more people focusing on cheaper items than on quality goods.
Wunderkind’s GM Wulfric Light-Wilkinson said: “Consumers already had myriad buying triggers and considerations prior to the cost-of-living crisis, and now the inflationary squeeze is making what were already convoluted spend decisions more complex.
“Shoppers’ loyalties to brands are being assessed, they’re thinking more carefully about what they can and can’t afford, and they’re being compelled to make tough purchasing decisions. For brands, this period is all about giving customers value; it’s about providing them not only with the things they want, but putting effort into retaining — and strengthening — the customer-brand relationship. Consumers’ brand allegiances are being tested, and the retailers that step up will win out in both the short and long term.”