Q1 2026 State of Spend: The controlled consumer

The Controlled Consumer:

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Why UK shoppers entered 2026 already spending with intent

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The New Year value hunt started before Christmas.

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Cardlytics’ State of Spend analysis of Q4 2025 and early Q1 2026 shows that UK consumers did not loosen their spending habits over the festive period. Instead, they became more deliberate about how and where they spent. Drawing on card-based transaction data from over 23 million bank accounts, the analysis points to a shift toward a more controlled approach to spending that is now shaping behaviour into 2026.

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The last State of Spend showed that UK consumers had returned to the market, but with conditions. Spending resumed, but cautiously. Shoppers scrutinised price, convenience and perceived quality, pulling back when expectations were not met. Consumers would still spend, but largely when prompted by the right offer or moment.

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The latest data shows that this scrutiny has since become embedded in shoppers’ habits. December revealed how consumers were already operating under tighter decision-making rules as they approached the new year.

With inflation ticking up again at the end of the year, cost pressures remained firmly in place. Rather than retreating from spending altogether, consumers adapted — switching formats, trading down and filtering purchases more aggressively. Festive spending held, but it was more controlled, with loyalty weakening and defaults increasingly questioned. As a result, consumers entered Q1 already spending more selectively.

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Read the full report by downloading it here.