The UK State of Spend: Who's Winning or Losing in H1 2026

Four signals from a shifting wallet — and what they mean for advertisers.

UK consumer spending looks healthy on the surface. Look closer, and the wallet is quietly diverging.

New analysis from Cardlytics, drawing on UK purchase data across more than 60 million enabled accounts, shows positive year-on-year spend growth across every macro category in H1 2026. But transactions, customer counts, and basket sizes tell a very different story underneath.

Consumers are protecting holidays, paying more for fewer nights out, and trading down on the high street.

Three shifts leaders shouldn't ignore

Holidays held, but restaurants didn't. Hospitality lost 3.83% of transactions year-on-year in H1; Nightlife lost 3.95%. Travel grew 0.97% in Q1, with Entertainment & Leisure up 6.16%.

Inflation is doing the heavy lifting on the high street. Hospitality, Nightlife, and Everyday Conveniences all posted positive spend growth — but only because average ticket value rose around 5%. Real visit frequency is falling.

Retail is winning volume and losing value. Non-Essential Retail transactions rose 6.09% in H1 while average basket size fell 4.15%. Consumers are shopping more often and spending less per basket — a clear discount-led signal.

Spend and transactions tell two different stores

Unlock the full Q2 State of Spend report

Top-line growth is masking a structural pullback in mid-week dining, a narrowing active customer base, and a discount-driven retail shift. Download the full report for the category-by-category breakdown and the four advertiser playbooks for an uneven wallet.

Inside the report:

• The "Who Is Losing?" Index: How six macro categories really performed once ATV inflation is stripped out.
• The Hospitality & Nightlife Squeeze: Why footfall is down ~4% even as spend ticks up.
• The Retail Paradox: Record transaction frequency colliding with shrinking baskets.

Four Playbooks for Advertisers: Where to drive frequency, where to grow basket size, and where loyalty beats acquisition in Q3.