The State of Spend report analysed anonymised transactions from over 23 million UK bank accounts for March to August across 2023, 2024, and 2025.
The report shows that spending on online fast fashion increased by 14% in 2024 and by 9% in 2025, driven primarily by a higher number of transactions, which grew 12% and 8%, respectively.
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However, average transaction value (ATV) fell by 3% in 2025.
The picture is different in high street fashion, which grew by 7% in 2024 but slowed to 4% in 2025. Transaction volumes plateaued during the same period, but average spend per transaction rose by around 4%, indicating that while spend remains, participation is not broadening.
Luxury and designer fashion faced bigger pressures, with Cardlytics data showing that spending in this segment dropped 6% in 2024 and 8% in 2025, with transactions down by 7% and 9%.
For those still making purchases, average transaction values increased by 3% and 5%. This change suggests that discretionary, higher-cost fashion purchases are taking place among a smaller pool of shoppers.
Sporting goods and athleisure saw 2% spend growth in 2024 but experienced a 6% decrease in 2025 as transactions fell by around 7% and average basket values remained steady.
Across retail, the report highlights that overall spend is holding up, growing 8% year-on-year in 2024 before slowing to 4% in 2025, but the volume of overall shopping activity is declining.
Cardlytics attributes this to lower participation rates in discretionary categories, with transactions falling by 3% to 7% in 2025 as people reduce shopping frequency.
Cardlytics UK Partnerships senior vice president Lucy Whittemore said: “Consumers haven’t stopped spending – but they are becoming far more selective about when and where they do it. What we saw across 2024 and 2025 is a clear shift from frequent, habitual shopping to fewer, more deliberate decisions, with each purchase carrying more weight.
“As we look ahead to summer 2026, that fundamentally changes the challenge for retailers. Growth will not come from more demand, but from winning a place in a smaller number of shopping moments. The brands that succeed will be those that can demonstrate clear value and show up at the right time, because there are fewer chances to do so.”
