During an economic downturn, headlines circulate of Brits embracing frugality and cutting back on spending. But, new data from VoucherCodes.co.uk reveals a surprising trend – consumers are actively becoming more selective, more strategic – and more willing to spend big on items that matter.
The findings show a striking shift in behaviour – as discount-seeking intensifies, so does spend per transaction. Whilst shoppers pull back on everyday spending, they also become more intentional – and often more ambitious – with their purchases during periods of financial uncertainty.
Moji Oshisanya, chief commercial officer at VoucherCodes.co.uk, comments: “The narrative that consumers retreat during recessions is outdated. They’re simply putting more thought into fewer, more considered purchases – and rewarding retailers that deliver clear value.
“This isn’t just belt-tightening, it’s value recalibration. Today’s shopper is informed, intentional, and in control. They’re not spending less – they’re just spending smarter.”
So, what does this mean for retailers? Oshisanya reveals VoucherCodes.co.uk’s insights, and how they will reshape retail strategy for 2025 and beyond.
Discount demand rises, but so do basket sizes
According to internal data from VoucherCodes.co.uk, visits to brand pages, where consumers can find discounts, rose by 30% during the H2 2023 UK recession, compared to H1 2024. This suggests that when economic pressures mount, consumers become more proactive in seeking out savings.
But, it wasn’t just low-cost purchases that benefitted. The average reported order value (excluding travel) increased by 11%, while transactions between £75 – £100 jumped by 79%. Purchases over £100 also rose by 68%, with categories such as electronics, health & beauty, and gifts & flowers seeing the biggest lift in basket value.
Oshisanya, explains: “During economic downturns, consumers become more selective – they’re not just buying more, they’re buying better. They’re seeking trusted retailers, comparing prices more thoroughly, and making purchases that feel worthwhile. The cost-of-living crisis has trained consumers to think critically about value, not just price – and money-off deals add to that perceived value significantly.”
Sentiment shows strain – but key cultural moments still unlock spend
Data on UK financial sentiment as part of VoucherCodes recent Women’s Euros 2025 Spending Report further highlights the evolving financial mindset of UK consumers. 60% of survey respondents said inflation had forced them to cut back on spending compared to the previous year, with particularly high cutback rates among younger demographics – 78.3% of 18-24s agreed they were spending less.
Yet, cultural touchpoints like major sporting events continue to encourage spending – particularly when aligned with discounting and value messaging.
For instance, planned spend around the Women’s Euros events remain significant despite economic uncertainty – suggesting that brands who tap into the emotional and social value of key calendar moments can still demand spend.
2023 vs 2024: the festive case for recession resilience
Despite being set against the backdrop of the UK’s most recent recession, VoucherCodes.co.uk’s internal data reveals that consumers made 13% more purchases and spent 19% more overall through VoucherCodes during Christmas 2023, compared to Christmas 2024 – when the economy was in far better shape.
And, some categories saw particularly sharp growth during the festive period. Purchases of gifts & flowers soared by 88%, while restaurants and takeaways sales rose by 49%. These figures suggest that even when budgets are tight, consumers don’t abandon generosity or meaningful moments – they become more value-conscious in how they deliver them.
Oshisanya, comments: “In difficult times, people don’t stop celebrating – they just shop smarter. That’s why we see increases in intentional spending around key life and cultural moments, despite wider economic downturns. Retailers who align with this mindset – offering clear value without racing to the bottom on price – are best placed to win loyalty.”
Why this matters for retailers and advertisers
For retail and advertising partners, these insights signal a crucial opportunity. Far from being a period to retreat, economic downturns present a chance to capture loyal, value-driven customers who are actively engaged in finding the right deal.
As brands begin to execute 2025 H2 strategies, and plan for 2026, Oshisanya recommends:
- Investing in visibility on discount platforms: With search traffic rising during recessions, brand presence on voucher sites like VoucherCodes drives measurable returns.
- Not underestimating premium purchases: Consumers still spend on higher-ticket items – particularly in trusted categories like electronics and beauty – but only when they see clear value.
- Leveraging cultural touchpoints: Events like the Women’s Euros, and seasonal periods like Christmas are key moments to reach emotionally engaged consumers, even in downturns.
So, as the retail sector navigates continued economic turbulence, consumer behaviour is proving more complex than simply cutting back. Discount-driven platforms like VoucherCodes.co.uk are seeing not only increased demand, but increased intent – with shoppers using deals to upgrade, not just save.
Oshisanya, concludes: “Economic downturns certainly aren’t times to go silent. Retailers should meet consumers where they are – actively seeking value and trusting brands that deliver it. Be visible on discount platforms where intent is high, don’t underestimate considered premium spending, and tap into cultural and seasonal moments to drive emotional engagement. In a downturn, value becomes everything – and retailers who deliver on that will come out on top”.
