While UK consumer card spending dipped slightly overall in 2025, new data from Barclays shows that beauty and clothing proved far more resilient than many other retail categories, as shoppers continued to prioritise confidence-boosting purchases amid ongoing economic uncertainty.
According to Barclays’ latest consumer spend report, overall card spending declined by 0.2% year-on-year, reflecting a more cautious consumer mindset. Confidence in household finances fell from 70% in January to 64% by November, while confidence in the UK economy averaged just 24% throughout the year. However, despite this backdrop, certain non-essential categories – notably beauty and fashion – managed to buck the trend.
Fashion shows cautious resilience
Clothing spending grew by a modest but notable 0.7% in 2025, with transaction volumes up 2.8% – a signal that shoppers are still engaging with fashion, albeit more selectively. While growth lagged behind beauty, it outperformed many other retail segments, including department stores, which saw spend fall by 6%.
The data suggests consumers are approaching fashion with a value-first mindset, shopping more frequently but being more price-sensitive.
Online clothing spend also benefited from a broader shift towards digital shopping, with online transactions up 1.2% overall, while face-to-face spending declined. The growing role of AI tools in shopping – particularly among Gen Z and younger millennials – is also shaping how consumers discover, compare and purchase fashion, reinforcing the importance of competitive pricing and clear brand positioning.
Beauty becomes a non-negotiable
Pharmacy, health and beauty was the strongest-performing retail category of 2025, growing by 9.5% year-on-year and delivering double-digit growth in several months. Barclays attributes this performance to the enduring “lipstick effect”, where consumers gravitate towards small, affordable luxuries during tougher economic times, alongside a sustained wellness boom.
Shoppers spent an average of £324 each on pharmacy, health and beauty over the year, up from £291 in 2024, marking nearly five years of uninterrupted growth for the category. Crucially, this wasn’t limited to skincare and cosmetics alone. Wellness is now firmly embedded in consumer behaviour, with 71% of respondents saying they invested in wellness over the past 12 months.
Male grooming and beauty also played a growing role in the category’s momentum. Barclays’ research earlier in the year revealed that almost one in five men now care more about beauty than they did a decade ago, with a quarter incorporating skincare into their daily routine. One in eight men has even spent money on a cosmetic procedure, highlighting how beauty is continuing to broaden its audience and cultural relevance.
Feel-good spending still matters
Despite pressure on essentials, non-essential spending grew by 0.8% overall, as consumers continued to ringfence budget for purchases that deliver emotional payoff. Almost half of consumers (44%) said they like to treat themselves regularly but find ways to do so on a budget.
Karen Johnson, Head of Retail at Barclays, said: “While confidence in the UK economy has declined, UK households’ confidence in their ability to manage their money has remained strong, translating into the resilient performance of categories such as travel, entertainment and beauty.
“It is encouraging to see that through purposeful spending, consumers continue to prioritise the things that bring them joy, unlocking the potential for UK economic growth.”