Brits pledge to boost support for alternative retailers

When it comes to shopping, it seems that “small and perfectly formed” is the order of the day for most UK consumers, with the majority planning to spend more with alternative retailers while experiences top most people’s wish list.

So says a new American Express study, which quizzed 2,000 Brits on their spending plans for 2025 and found that a love of experiences, such as dining, day trips, wellness activities and festivals is set to continue, with 59% planning to spend the same amount or more on experiences this year, compared to last.

In fact, two-fifths (39%) say they like to try at least one new experience every year and a similar proportion said they prioritise spending on experiences over material items (38%).

Gen Z and Millennials were the largest cohort anticipating spending more on this category – 56% intend to fill their free time enjoying more experiences during 2025, according to the research.

Brits will be taking an increasingly savvy approach to their spending, the research found. Half of all respondents will buy from alternative retailers if they feel they can get a better deal, with a third stating they would be encouraged to do so by specific offers.

People highlighted various reasons why they would continue shopping small, including how these businesses boost the appeal of their local high street (53%); the personalised experience they enjoy when shopping (50%); and a desire to support their local community (43%).

The research showed that affection for the UK’s small businesses remains strong, with 63% of consumers believing it is important to support these businesses all year round, and not just during seasonal peaks like Small Business Saturday, which in 2024 saw a collective £634m spent in-store and online.

Shoppers also plan to lean into ways of achieving greater value for money this year, compared to last; buying pre-loved items, maximising seasonal sales, and using payment cards that offer rewards and points on their purchases were among the top ranked tactics.

Furthermore, Gen Z and Millennial shoppers ranked as the most thorough when it comes to their research before spending, particularly if planning to purchase big ticket items like furniture. Nearly three-quarters (73%) of this group either always or sometimes seek recommendations in advance.

American Express UK general manager of merchant services Dan Edelman said: “The one guarantee with retail is that it never stands still, and it’s the retailers who best meet ever evolving customer expectations that will succeed. Our research identifies some distinct priorities that are likely to influence consumer spending behaviour in the months ahead.

“For small businesses, it’s hugely positive to see continued recognition of, and affinity for, shopping small highlighted by the research. Small businesses pride themselves on the unique experiences and service they offer, something that clearly appeals to consumers.”