Almost half of UK consumers intend to spend on Valentine’s Day this year or have already started to spend on it, bringing an immense opportunity for retailers to utilise the popularity of this occasion and encourage larger basket sizes and boost average spending.
GlobalData’s latest report, “Retail Occasions: Valentine’s Day Intentions 2025,” reveals 69.3 per cent of UK 25–34-year-olds intend to spend on this occasion, marking a 7.8 percentage points (ppts) uplift on 2024 intentions. This age group will account for almost a quarter of Valentine’s Day shoppers in 2025, meaning this is a core target demographic for retailers.
Zoe Mills, Lead Retail Analyst at GlobalData, comments: “Intention to spend on Valentine’s Day is high, but few consumers have started to spend on this occasion so far in January, meaning retailers still have plenty of time to entice shoppers to purchase.
"The grocers are in the best position, with the intention to spend the highest among the food and drink and gifting categories. Romance-themed meal deals including prosecco/champagne, should be promoted at the front of stores.
“However, with the target audience likely to have children, retailers should also include Valentine’s Day-themed products that appeal to a much younger audience. Retailers should emulate Marks & Spencer’s range, including items like Love Hearts Biscuit Kits, enabling adults and children to decorate heart-themed biscuits.”
While partners are the main recipients among Valentine’s Day gift shoppers, more consumers intend to spend on their children for the event, highlighting that this occasion is not just about romantic love but also familial love, coupled with self-love and the appreciation of one’s friends.
Mills continues, “There is ample opportunity for retailers to broaden their reach with this occasion and ensuring a variety of more generic love-themed designs will enable their products to be gifted to a broad range of recipients. 11.9% of Valentine’s shoppers intend to purchase gifts for friends, up 3.2ppts on 2024.
"This trend is driven by Gen Z consumers, with 59 per cent of this generation stating that Valentine’s Day is not just an occasion to treat their partner and that they like to buy gifts or cards for other loved ones. Events such as Galentine’s Day parties, celebrating friendship, may still be niche but must not be ignored by retailers.”
GlobalData expects that food and drink gifts will be the most popular among Valentine’s Day shoppers, and retailers must ensure plenty of food and drink gift sets to appeal to shoppers, focusing on confectionery and alcoholic drink gift sets.
Mills concludes, “Retailers must focus on food and drink gifts, where the intention to spend is high. The higher intention to spend on these items also implies that Valentine’s Day gifts are more of a token than an excuse to splurge on premium options such as fine jewellery, and retailers must ensure a broad pricing architecture to appeal.
"Flowers are also an accessible option for male Valentine’s Day shoppers, and providing a broad range to cater to different colour preferences is crucial.
"Red roses or red and pink bouquets should not be the only options; fun and colourful bouquets could appeal to those looking for something less traditional and more generally to those seeking these gifts for friends.”
Most Brits visited a retail destination during October and November 2024, shows a recent report, highlighting the resilience of physical retail.
According to the latest Consumer Pulse Report by MRI Software, in partnership with Retail Economics, 88 per cent of the UK population visited a retail destination during October and November 2024 — an increase of 86.1 per cent since May 2024. The report also reports an average of 2.2 visits per person per month.
The latest survey reveals that 31 per cent of office workers play a key role in high street retail, with visits peaking during lunch hours.
33 percent of office workers choose to visit after 5pm on weekdays, particularly Tuesdays and Wednesdays which are popular days to venture into the office.
As return to office becomes more widespread, the retail sector has an opportunity to maximise engagement and sales by leveraging these insights and presenting itself as a convenient shopping option for the hybrid workforce.
The under-35 demographic is increasingly motivated by experiential retail opportunities, such as dining and leisure. In November, this age group averaged 9.5 visits to physical retail destinations — more than double the frequency of those aged 55 and over. The rise of social commerce, which enables shoppers to make purchases within social media apps such as TikTok and Instagram, is likely influencing footfall into physical retail destinations and creating opportunities for in-store experiences.
“The latest findings depict a retail sector that continues to adapt and remain relevant as consumer behaviours shift,” commented Jenni Matthews, Marketing & Insights Director, MRI Software.
“With 88 per cent of the UK population visiting retail destinations and under-35s driving experiential trends, it’s clear that physical retail remains a powerful touchpoint for engagement.
“Retailers have an incredible opportunity to leverage these insights—not just to meet consumer expectations, but to exceed them by creating vibrant, immersive destinations that align with changing consumer behaviours.”
Retail leaders are prepared for a challenging start to 2025 following the Autumn Budget, bringing with it financialpressures and rising costs.
Consumers are already erring on the side of caution, as 51 per cent of shoppers remain concerned about the rising cost of living over the next six months. This figure is down from 60 per cent in May 2024, suggesting a gradual improvement in consumer confidence.
However, affordability remains top of mind, with shoppers prioritising value and cautious spending.
The UK is witnessing a continued resurgence in cash usage, as revealed by a new report from Nationwide Building Society. For the third consecutive year, cash withdrawals have risen, with ATM withdrawals increasing by nearly 5 per cent over the past year.
In 2024 alone, over 30 million withdrawals were made, totalling £4.34 billion. Since 2021, the number of cash withdrawals has surged by nearly 30 per cent, defying the narrative of digital payment dominance.
The report identifies economic uncertainty and the cost-of-living crisis as significant drivers of this trend. Consumers increasingly turn to cash for budgeting purposes, finding that using physical money helps them manage spending more effectively and maintain financial discipline.
The ongoing cost-of-living crisis has prompted many consumers and businesses to reevaluate their payment habits. For many, cash remains a trusted, resilient, and private method of payment. Businesses that have shifted to cashless models may be losing customers who prefer the option to pay with cash, underscoring the need for payment flexibility in a challenging economic climate.
“The recent figures show consecutive annual increases since the pandemic. With cash usage continuing to grow year on year, it’s evident that cash is no longer in decline,” said Mike Severs, Sales & Marketing Director at Volumatic, leaders in cash handling solutions. “Businesses must adapt to this trend by maintaining the option to accept cash and promoting it to customers. Investing in cash handling technology can streamline operations, improve efficiency, and reduce costs.”
Severs also highlighted the risks businesses face when going cashless. He adds: “Those who have moved to card-only payments should reconsider, as they risk losing customers and revenue. We have seen many retailers and quick-service restaurants reintroducing cash payments with significant success, boosting profits and enhancing customer satisfaction.”
As businesses adapt to the rise in cash usage, intelligent cash handling solutions can transform operations. Volumatic’s products, trusted globally by leading brands such as Tesco, McDonald’s, and Odeon, offer efficiency, security, and accuracy.
The CounterCache intelligent (CCi) provides award-winning note validation, secure storage, and accurate note counting at the point of sale. Paired with the CashView Enterprise software, businesses gain comprehensive reporting and visibility from POS to bank.
The CountEasy cash counting scales enable businesses to count a till drawer in under a minute, while the secure CounterCache storage devices and FC300 friction note counter are ideal for handling large cash volumes safely and efficiently.
With cash usage on the rise, businesses are encouraged to align with customer preferences and explore advanced cash handling solutions. By doing so, they can reduce operational costs, enhance security, and capitalise on the growing demand for cash payments – a smart investment in today’s economic environment.
On the same day Chancellor Rachel Reeves announced plans to kickstart the UK’s floundering economy, the Scottish Licensed Trade Association (SLTA) revealed in its latest Market Insight Report that 80 per cent of survey respondents expect the Scottish economy to decline – with six per cent considering closing their premises.
The SLTA's report gives a snapshot survey of the challenges faced by Scotland’s pubs, bars and hospitality venues in the year 2024, with a deep dive into the festive trading period, and the expectations of the sector in 2025.
It reveals that the Scottish licensed hospitality industry ventures into 2025 with concerns over continued pressure from rising costs, staff availability, changes to employers’ national insurance contributions, and low economic confidence.
The survey’s responses represent over 400 pubs, bars, restaurants and hotels, covering the full spectrum of licensed hospitality businesses throughout the country, and contain key insights into the continued challenges facing hospitality, driven by a challenging economic environment and visitors with less disposable income.
“Christmas and New Year was a difficult period for our industry with a universal theme of visitors spending less time in outlets and spending less on food and drink. We did see an upturn in lower-strength products, but this was offset by customers having ‘one course instead of two," said Colin Wilkinson, SLTA managing director.
“Over the course of the calendar year, 49 per cent of outlets were down year on year, but over the festive period this increased to a worrying 69 per cent of outlets reporting a decline.’’
Mr Wilkinson added: ‘‘We also continue to face rising costs and staff shortages – 38 per cent of outlets told us that staff availability is impacting upon opening hours, up from 23 per cent in the summer. We are also seeing increased costs from suppliers and government increases in taxes.
“Regarding the pending changes to NI contributions, 75 per cent of outlets expect new employers’ NI costs to impact on their staffing levels. This will make it even more difficult for businesses to open their full operating hours, remain competitive and get more people into our venues.
“We are also facing the harsh reality that six per cent of respondents are seriously considering closure.”
The SLTA has been conducting Market Insight Surveys for nearly 10 years with the analysis based on quantitative research from outlets covering the length and breadth of the country. This survey is supported by major food and drink chains, and independent pubs, bars and hotels, across Scotland’s licensed hospitality sector.
Commenting on staff availability and how the government can support the sector, Mr Wilkinson added: “One proposal that the SLTA supports is the introduction of a Scottish hospitality workers’ visa, which could help to alleviate staff shortages.
“The hospitality industry fulfils a critical role in Scotland’s food, drink and tourism industry, and we are keen to work with government to explore opportunities to protect jobs in this vital sector and help businesses to work to their full potential.”
Shock figures from the Office for National Statistics released this month reveal that transport and storage sector firms (the category which includes logistics, parcels, haulage and warehousing employers) have a cash crisis. The sector has the lowest cash reserves of any industry, including their manufacturing and retail partners.
The ONS’s Business Insights and Conditions Survey dataset, Wave 123, reveals that, compared to any other sector, more transport & storage companies have no cash reserves, says the home delivery company, Parcelhero.
Parcelhero’s Head of Consumer Research, David Jinks, a Member of the Chartered Institute of Logistics and Transport, says: "Companies were asked: 'How long do you expect your business's cash reserves will last?' Of those who responded who are listed as currently trading, a whopping 36.8 per cent of transport & storage firms say they have no cash reserves.
The position has worsened rapidly since the first time the question was posed in June 2020. At that time, of the transport and storage companies currently trading which responded, the number reporting they had no cash reserves was too small to register in the survey.
"The situation is even bleaker when we compare the transport and storage companies’ cash reserves with their partner firms in the manufacturing and retail sectors," Jinks continued. "Only 10.9 per cent of manufacturing companies currently trading report they have no reserves. Similarly, just 16.4 per cent of currently trading retail sector companies say they have no cash reserves.
"In fact, construction is the only business sector to have anything approaching a similar number of companies with no cash reserves. 25.5 per cent of construction firms reported that they are out of cash reserves. That’s still over 10 per cent fewer than the transport and storage sector.
‘Believe it or not, looking deeper into the figures, there’s even worse news. A further 12.4 per cent of transport and storage firms say they have less than a month of reserves left. In fact, only a meagre 12.9 per cent report they have more than six months of cash reserves. Compare that to June 2020, when a robust 25.4 per cent of transport and storage companies had more than six months of reserves.
Jinks said that the awfulness of the figures is highlighted by the fact that only 5.1 per cent of manufacturing companies say they have less than a month of reserves and a healthy 29.8 per cent say they have more than six months of cash. Among retailers, only 6.3 per cent say they have less than a month of cash reserves and 27.7 per cent have more than six months of cash reserves.
"Perhaps the most telling figures are those of the sector with the healthiest cash reserves. The information and communication sector reported only 7.2 per cent of currently trading companies have no reserves, just a further 1.8 per cent have less than a month’s reserves and a staggering 46.5 per cent of the sector have more than six months of cash reserves. That puts the cash issues facing the transport & storage sector into perspective.
Jinks concluded that it will be those transport and storage companies who are partnered with retailers with strong in-store and online sales that will perform best. Parcelhero’s “2030: Death of the High Street” report, which has been discussed in Parliament, reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales."
A new report from the Association of Convenience Stores (ACS) celebrates the vital role of the UK’s nearly 19,000 rural convenience stores, highlighting their significant investment, community contributions, and diverse services.
This recognition, however, comes despite the considerable challenges these businesses face. The 2025 Rural Shop Report, released today (29 January), details how rural retailers positively impact their communities and argues for increased government support to ensure their continued success.
Key findings from the report underscore the importance of these stores: they provide secure, flexible employment for over 178,000 people; 40 per cent are the sole convenience store in their area, serving as a lifeline for residents; they generated £18.5 billion in sales last year; and rural retailers have collectively invested over £240 million in their businesses over the past year to better serve their communities.
The report highlights the unique challenges that rural retailers face compared to their more urban counterparts, including a lack of connectivity, issues with the cost and availability of deliveries, theft and other retail crime, and more.
Hopes of Longtown, featured in the report, is an award-winning village shop and post office at the foot of the Black mountains in Hereford, is a case in point. The shop currently receives 100 per cent discretionary business rates relief from the local council because of its status as the only shop in the village, but owner Christine Hope is concerned that this could be dropped as councils deal with growing budget deficits.
“Hundreds of thousands of people in isolated areas across the UK rely on their local shop to provide them with the products and services that they need. If rural shops aren’t able to survive, invest and adapt, nobody will step in the host the post office, offer other essential services and promote the human interaction and social glue that binds those communities,” ACS chief executive James Lowman commented.
“These shops need to be supported by both local and national policymakers at a time when costs are rising significantly as a result of the Budget. We are calling on all MPs in rural constituencies to commit their support for the rural shops that trade at the heart of their communities.”