A shift in mindset is underway. Here’s what UK marketers need to know now.
Amid continued economic headwinds, UK consumers are beginning to move out of crisis mode by recalibrating spending habits, reassessing brand relationships, and redefining what value looks like. dentsu’s latest UK Consumer Navigator: Q2 2025 captures this changing mood and reveals key insights to help brands stay ahead.
While concerns around affordability persist, more people are feeling secure enough to re-engage (cautiously) with bigger aspirations. And with retail under the microscope this quarter, the findings offer timely signals on where to invest for impact.
Download the full report now to explore generational trends, evolving shopper expectations, and practical strategies for growth.
Economic outlook: caution remains, but mindset is shifting
After months of flatlining sentiment, our research shows the first meaningful uptick in how UK consumers view the economy. The number of people rating it as ‘good’ or ‘excellent’ rose from under 20% in Q1 to 28% in Q2. That’s not a surge; but it is a signal.
At the same time, 40% still describe the economy as poor, and nearly half say they’re cutting back on spending. What we’re seeing isn’t a turnaround, but a subtle reset: people are adjusting to new norms, planning more carefully, and finding moments to prioritise what matters.
What this means for marketers
Now is the time to meet consumers with messages that reflect their lived reality. In today’s climate, considered is the new cautious. People aren’t spending freely, but they are spending wisely - and brands that can show up with relevance and purpose will win. That creates space for value-driven innovation, smarter loyalty, and emotionally intelligent engagement that supports customers without overwhelming them.
Retail under pressure: value, trust, and digital fluency lead the way
This quarter’s deep dive into retail behaviour shows a consumer base that’s increasingly savvy, selective, and digitally fluent.
Trust is an investment multiplier
Consumers are thinking more critically about the brands they buy from, not just what they sell. That includes ethical credentials, sustainability efforts, and employee treatment.
This trust factor is especially powerful when paired with relevant experiences. Brands that bring together consistent messaging, considered rewards, and respectful data use are best positioned to drive long-term loyalty. Disconnected strategies won’t cut through. Whether in-store, online, or across media, the brands that lead will be those that orchestrate joined-up journeys powered by data and empathy.
Generational divide: younger consumers are setting new rules
While all age groups are becoming more considered, younger shoppers (Gen Z and Millennials) are shaping the future of retail through their expectations of engagement, relevance, and purpose.
What Gen Z wants (and expects)
- Gamification: 54% of Gen Z rate personalised product recommendations as the most helpful type of advertising
- Relevance: These shoppers expect communications that reflect their context, not just their purchase history
- Purpose: Social values and community impact play a growing role in building brand affinity
Retailers must think beyond channels and touchpoints to create joined-up journeys that reflect how younger consumers experience the world: digitally connected, ethically aware, and eager for utility. To resonate with younger audiences, loyalty must evolve into a two-way value exchange: rewarding not just spend, but attention, advocacy, and values alignment.
What it means for brand growth
The landscape is still complex, but the direction of travel is becoming clearer. People want brands to show up with relevance, respect, and resonance across media, experiences, and commerce. Retailers have an opportunity to reimagine the store as a platform for storytelling, engagement, and utility, not just transactions.
The brands that will grow in 2025 and beyond are those that:
- Join up retail media, CRM, content, loyalty, and commerce to deliver coherent journeys
- Use CRM as more than a messaging tool – treating it as the link between data, creativity, and value
- Make retail media work harder: delivering inspiration, utility, or trust, not just impressions
- Create emotionally rewarding, economically relevant experiences that meet consumers where they are
- Use the physical store as a hub for discovery, engagement, and feedback, not just transactions
In action: how leading brands are responding
The report includes examples from brands embracing this shift:
- Co-op is aligning loyalty and media for more relevant, community-focused engagement
- Burger King has transformed its CRM approach to deliver tailored value across moments
- A UK home improvement retailer is using in-store AI displays to personalise creative in real time, boosting both satisfaction and conversion
Each case underlines a core message: putting data, creativity, and tech to work in service of a better customer experience leads to real commercial impact.
Why download the full report?
Get access to exclusive research and insights, including:
- UK economic mindset trends by age and region
- A focused exploration of evolving retail behaviours
- Strategic implications for brand, loyalty, and commerce
- Client case studies demonstrating real-world application
- Actionable guidance on how to turn insight into growth
Whether you’re shaping your H2 strategy or looking to target customers through sharper thinking, this report is designed to fuel better decision-making.
Don’t get left behind
The consumer landscape isn’t snapping back; but it is settling into something new. Now is the time to adapt. To anticipate. To act with intention.
The UK Consumer Navigator gives you the data and direction to make every brand moment count.
Want to talk through what this means for your brand? Get in touch with our team – we’d love to help you turn insight into action.