Online retail growth reaches 5.7% in January, while cinemas and streaming services soar
Consumer card spending increased 0.8% in January – considerably less than the latest CPIH inflation rate of 3.6%. Essential spend fell -1.1%, marking six months of decline, but discretionary spending grew 1.6%, led by the strong performance of online retail over the January sales period. Entertainment was another bright spot, boosted by the cold weather, awards season excitement and the runaway success of new TV shows such as Heated Rivalry.
Consumer confidence remained stable in January, with most measures on par with December, when they improved marginally. Confidence in household finances remained at 66%, up two percentage points from November (64%), while confidence in consumers’ ability to live within their means also stayed flat, at 71%.
| Barclays consumer confidence measures | ||||||
| Aug | Sep | Oct | Nov | Dec | Jan | |
| Household finances | 73% | 74% | 63% | 64% | 66% | 66% |
| Job security | 48% | 47% | 44% | 43% | 46% | 43% |
| Non-essential spending | 60% | 60% | 51% | 52% | 55% | 54% |
| Ability to live within means | 77% | 78% | 70% | 71% | 71% | 71% |
| Strength of UK economy | 28% | 25% | 22% | 22% | 24% | 24% |
Retail recovers after subdued ‘Golden Quarter’
Retail rose 1.7% in January, after sales were flat in December (0.2%). Clothing (3.1%), pharmacy, health & beauty (8.0%) and general retailers & marketplaces (4.8%) all enjoyed strong performances (up from 1.1%, 4.3% and 2.6% in December). Online retail spend growth (excluding groceries) reached 5.7%, with online’s share of retail spending (excluding groceries) at 59.2% – its highest level since January 2022 – suggesting shoppers browsed the sales from the comfort of home.
Screentime soars
Spending on digital content & subscriptions grew 9.3% year-on-year, as viewers tuned in to watch popular series such as Heated Rivalry and Stranger Things. Over a third (35%) said they watched more films and TV shows in January due to the cold weather and dark evenings, which also contributed to a six-month high for entertainment, up 8.3%, as cinemagoers ventured out to see Oscar-nominated films including Hamnet and Marty Supreme.
‘Premiumisation’ of cupboard staples and branded favourites
Three in five (59 %) are looking for ways to cut the cost of their weekly shop, however seven in 10 (72 %) say they’re willing to pay more for specific branded products, despite there being cheaper, own-brand alternatives available. People are most inclined to pay extra for branded tea and coffee (35 %), condiments such as ketchup and mayonnaise (27 %), laundry products (25 %), and butter and spreads (24 %).
Similarly 19 % say they’ve been buying more “premium” produce and 17 % are happy to pay more for foods that benefit their long-term health. This comes as spending at food and drink specialist stores grew 4.5 % in January. Half (50 %) of those cutting discretionary spending (51 %) say they will spend less on takeaways, with the category down -0.3 % year-on-year – its greatest decline since June 2025 (-1.1 %). Restaurants saw growth of 1.7 %, but transaction volumes for overall eating and drinking dropped -1.6 %, suggesting consumers prioritised home cooking in January.
GLP-1 friendly foods hit the shelves
Amid the growing popularity of weight loss drugs, one fifth (17 %) of consumers have spotted more GLP-1-friendly options on supermarket shelves, rising to 28 % for those aged 18-34. A further 15 % have also noticed these options on offer on restaurant menus and when eating out.
The new year has also brought a renewed focus on health and wellbeing for half (50 %) of UK adults. Topping the list of health-focused habits is: eating fewer ultra-processed foods (29 %), eating more fibre (20 %) and protein (19 %), and buying products that support gut health (12 %).
Karen Johnson, head of retail at Barclays, said: “Both big and small screen entertainment thrived last month, helped by the buzz around awards season favourites, and people spending more time at home. This also resulted in growth for online retail, as shoppers seemingly held out for the January sales. Specialist foods stores, in particular, saw a boost, with premiumisation of pantry staples boosting sales, particularly those supporting health goals, even when sticking to a budget.”
Jack Meaning, chief UK economist at Barclays said: “Improving consumer confidence is absolutely key to the UK’s economic outlook in 2026. With that in mind, the stabilisation in this month’s survey is an encouraging step in the right direction. With inflation set to fall quickly in the coming months, interest rates on course to ease and some early signs of resilience in wider activity, the scene is set for confidence to pick up, supporting growth in spending as the year goes on.”
Overall growth figures
| Spend Growth | Transaction Growth | |
| Essential | -1.1% | -2.7% |
| Non Essential | 1.6% | 1.4% |
| OVERALL | 0.8% | -0.2% |
| Retail | 1.7% | 0.3% |
| Clothing | 3.1% | 4.3% |
| Grocery | -0.2% | -2.0% |
| -0.7% | -3.1% |
| 4.5% | 4.5% |
| Household | -1.4% | 2.0% |
| -2.4% | -5.4% |
| -1.8% | 6.6% |
| -0.1% | 1.4% |
| 1.4% | 1.9% |
| General Retailers | 2.6% | 3.3% |
| 4.8% | 6.0% |
| -3.4% | -0.7% |
| -2.0% | -5.6% |
| Specialist Retailers | 6.2% | -0.7% |
| 8.0% | -1.1% |
| -3.3% | -3.3% |
| 9.3% | 0.6% |
| Hospitality & Leisure | 2.0% | -0.8% |
| Digital Content & Subscription | 9.3% | 4.3% |
| Eating & Drinking | 1.2% | -1.6% |
| 1.7% | -0.5% |
| 2.6% | 1.0% |
| -0.3% | -4.2% |
| Entertainment | 8.3% | 1.9% |
| Hotels, Resorts & Accommodation | 0.3% | -3.6% |
| Travel | 1.4% | -2.5% |
| 6.0% | 15.0% |
| -4.6% | -5.3% |
| -1.1% | -5.8% |
| 2.4% | 2.3% |
| Other | -3.5% | -0.6% |
| Fuel | -4.0% | -4.2% |
| Motoring | -4.8% | 4.4% |
| Other Services | -2.7% | 0.4% |
| Insperiences | 3.6% | -4.3% |
| Online | 2.2% | 3.8% |
| Face-to-Face | -0.6% | -2.2% |