UK shoppers regain confidence as in-store ads & loyalty rule
UK consumers are showing signs of renewed confidence in the economy as new findings suggest a shift in retail expectations and behaviours.
The latest Consumer Navigator report, compiled by dentsu, indicates that 28% of UK shoppers now consider the economy to be in good or excellent shape, representing an 8-point increase from the previous quarter. This development, according to the report, comes at a time when economic pressures remain, but consumers are reassessing their purchasing values and habits.
Dan Truman, Group Chief Strategy Officer at dentsu, commented on the changing landscape:
"Today's consumers aren't just looking for low prices – they're seeking relevance, reward, and emotional connection. Retailers must now deliver experiences that feel personal, purposeful, and seamless across every touchpoint."
Generational perspectives
The report highlights a significant generational divide in economic confidence. Over half (53%) of Gen Z respondents feel the economy is likely to improve over the next 6 to 12 months, in contrast to just 25% of Baby Boomers who share the same outlook.
Differing expectations are also apparent in what various age groups value during the purchase decision-making process. While 59% of Gen X shoppers find limited-time offers and discounts most helpful, younger shoppers across Gen Z and Millennials also seek product recommendations and real-time updates.
Retail and advertising preferences
The study points to a notable shift as digital fatigue grows. Nearly 40% of UK consumers report feeling overwhelmed by online advertisements, but 68% now view in-store advertising as striking the "just right" balance. This presents an opportunity for brands to enhance physical retail experiences, aligning in-person engagement with evolving consumer demands.
Social media continues to play a key role, especially among younger shoppers. The majority of Gen Z (61%) and 58% of Millennials say they discover more products on social media platforms than through traditional retail channels.
Loyalty influences and sustainability considerations
Brand loyalty schemes remain influential, with nearly half of UK respondents stating these programmes affect their brand preferences. Boomers and women are particularly influenced by such schemes, according to the report. Sustainability also figures prominently: 56% of shoppers actively try to balance convenience with sustainability, including when using fast-commerce platforms.
Truman elaborated on the evolving expectations of consumers, stating,
"Consumers want brands that understand them, reward them, and reflect their values."
He continued,
"It is about more than just shopping - it is about connection."
He further explained,
"And it is not just about what you buy, but how you buy it. Social media (and increasingly GenAI) is now the go-to for discovering new products, especially among younger generations. But with ad fatigue setting in, many are turning back to in-store experiences, especially when there is a good deal or a loyalty bonus involved."
Changing retail dynamics
The findings illustrate a retail sector adapting to shifting consumer expectations. The report notes a rise in second-hand shopping, with younger consumers, particularly Gen Z, leading activity on online platforms such as Vinted and Depop. It also details how brands are exploring gamified experiences - such as Burger King's football-themed app campaign - demonstrating how entertainment and engagement are becoming parts of loyalty strategies.
The Consumer Navigator report suggests that the process of discovery, evaluation, and engagement in retail is being influenced by a combination of economic sentiment, digital behaviours, and the importance of personal values to consumers.
The research was conducted by dentsu through Toluna's online panel, surveying a nationally representative sample of 1,000 respondents aged 18 to 79 across the UK.
