Spend, spend, spend: Brits seek solace at the shops

The cost of living crisis might stil be raging but Brits are maintaining strong spending power, with nearly two-fifths (38%) of UK consumers insisting they are splashing out more of their disposable income now than at any stage in the past 12 months.

So says a new study of 2,000 Brits, released by out of home firm Bauer Media Outdoor, formerly Clear Channel UK, which also indicates growth in consumer confidence, with 36% of Brits reporting having less rigid budgets and treating themselves more, compared to the same period last year (20% YoY increase).

The report is in stark contrast to Blue Yonder’s 2025 Global Consumer Sentiment on Grocery Inflation Survey – published last week – which revealed global pressures were continuing to wreak havoc with household budgets.

Bauer Media Outdoor’s Audiences in Focus report also reveals that travel topped the list of disposable income spending for Brits, with 1 in 3 (33%) splashing out on get away. Clothes (26%), home improvements (25%), entertainment (23%), and hobbies (20%) round out the top five sources of disposable income spending.

The research data shows a clear divide in how each age group uses their disposable income. Gen Z spends their disposable income on snacks (32%) and entertainment (26%), while Millennials prioritise clothes (37%) and travel (30%). Those aged 35 and over spend most of their disposable income on travel, and this preference increases with age.

Aberystwyth, Glasgow, London, Manchester, Sunderland, Newcastle, Birmingham, Chelmsford, Belfast and Portsmouth have emerged as the top 10 cities and towns with the greatest increase in disposable income spending over the past year.

Contrary to the belief that big cities have a monopoly on spending power, the data shows that people from all over the UK are actively choosing to spend their disposable income.

Motivations behind spending disposable income include serving as a mood boost (32%), seeking new experiences (31%), for self-improvement (23%), and in pursuit of social connection (19%).

When it comes to generational differences, 18- to 24-year-olds (32%), 45- to 54-year-olds (41%), and 55- to 65-year-olds (34%) prioritise the mood-boosting abilities of spending.

An impressive 45% of 25- to 34-year-olds spend their money in the name of self-improvement. For 35- to 44-year-olds (38%) and those 65 and over (21%), new experiences are the main reason for supplementary spending.

Even so, when it comes to the main categories people spend most of their money on, grocery shopping (69%) tops the bill, followed by travel (31%), eating out (29%), quality time with family (26%), and clothes shopping (18%)

Perhaps unsurprisingly, the younger generations are more likely to spend money on socialising than their older counterparts, with 18- to 24-year-olds (21%) and 24- to 44-year-olds (18%) investing more in their social lives than 45- to 64-year-olds (16%) and those aged 65 and over (15%).

Bauer Media Outdoor UK marketing director Ben Hope said: ‘’It’s a common misconception that only big cities have consumer potential. Our insight challenges that theory. Across the UK, there are consumers with a strong spending power, in cities both big and small.

“Our report reinforces the opportunities available and unveils untapped markets for brands, whilst helping them understand how best to reach consumers and map their advertising investment to get more from their media.”