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Nigel TAYLOR Published
July 11, 2025
As the UK cost-of-living crisis deepens, something has to give in the spending column. And it looks like beauty purchases could be among those most hit, as consumers look to prioritise holidays, according to a new survey.
In fact, over 40% of UK adults plan to cut back on shopping in order to go on holiday this summer, according to a GlobalData report. The good news though is that with holiday plans being prioritised, fashion should benefit as consumers replenish summer wardrobes that have been neglected for two years.
Having suffered lockdowns over a two-year period, it’s no wonder a vacation is high on the list of priorities, with some 65.1% of UK consumers planning to go on holiday this summer. But that means limiting the amount of money shoppers have left to spend at retail.
According to the data and analytics company’s Consumer Survey, 42% of those consumers will cut back spending on essential sectors including food & grocery and health & beauty to ensure they can go on holiday.
Broken down by age groups, the survey found that 84.7% of 16–24-year-olds, primarily due to their lower incomes, will cut back spending, while only 30.3% of over 65-year-olds intend to.
“Therefore, retailers targeting younger shoppers such as Superdrug and online pureplays like Cult Beauty are more likely to be impacted by the cost of living crisis and should put steps in place to counteract this,” noted Juliet Cuell, Retail Analyst at GlobalData.
As well as cutting back on spending, shoppers are also likely to purchase retailers’ own brand products for their holiday to make savings where possible by trading down from well-known brands, particularly on everyday toiletries. One third already intend to do so when purchasing essential products, in response to rising prices.
Meanwhile, the report said value retailers are likely to grow market share, particularly as grocers such as Sainsbury’s have been widening their health & beauty ranges in-store, offering product choice across price points.
Cuell added: “To encourage spending, retailers should capitalise on younger consumers’ appetite for keeping up with the latest trends and launch new holiday ranges with introductory price promotions or with free samples of the latest products that consumers can travel with. For instance, retailers such as Boots must utilise membership pricing schemes to include a greater variety of brands, like P20 suncare, or risk losing shoppers to discounters, some of which have an almost equally broad product offer.”
Sher also said: “In order to compete on price, health & beauty specialists should make better use of instore specialists to offer a more personable browsing experience than that available at grocers and discounters, such as advice sessions for loyalty scheme members on holiday travel health.”