New spend data1 from Virgin Money reveals that customers are gearing up for the festive party season with spend on style and wellbeing on the up this autumn.
The latest analysis shows autumn lifestyle spending (covering the period between September and November this year) has risen to £701m, an increase of £27.3m (4%) compared to the same period last year. Lifestyle categories include eating out, holidays, style, wellbeing, keeping fit, memberships and subscriptions, staying away, and entertainment.
The number of transactions has similarly risen by 2.7% year on year, while the average spend per transaction is up by 1.3%, showing customers are continuing to spend little and often.
October takes the lead
Contrary to expectations, and last year’s spending data, October spend reaches the highest monthly total for the quarter at £253m, surpassing November’s £231m. There’s also a 17% increase in spend between September (£217m) and October (£253m). This shift suggests that consumers may have started their Christmas shopping earlier than usual this year or that the impact of Black Friday, which fell later in November than usual, will be more pronounced in December. In fact, there’s early evidence of this, as the total spend for the first week of December has increased by £8.6 million (15%) compared to the same week in 2023.
Staying in style and on top of wellbeing is a top priority
Customers have been making seasonal switches when it comes to their spending habits, with spending on style – which includes money spent on clothes, shoes, accessories, jewellery etc. – seeing the biggest rise in the lifestyle category. Brits are updating their wardrobes and buying presents ahead of the Christmas celebrations, with total spend on style this autumn reaching £125m, an increase of £8m (7%) compared to summer (June to August). Next, Primark and Vinted have emerged as the leading retailers for Virgin Money customers in this category. Notably, Vinted experienced the most significant growth, with a 29% year on year increase in spending (£1.4m) and a 22% rise (£1.2m) compared to summer. Transactions at Vinted were also up by 14% compared to summer, showing a growing consumer preference for sustainable fashion choices.
Spend on wellbeing – which includes money spent at cosmetics stores, health and beauty spas, barbers/hairdressers and beauty shops – climbed to £35.6m in autumn. This represents a 6% increase from summer and a 5% year on year rise. Of the £35.6m, the two top retailers for Virgin Money customers were The Perfume Shop (where spend is up by £260K vs summer) and LOOKFANTASTIC (an increase in spend of £250K vs summer).
However, the rise in cosmetic wellness hasn’t extended to physical wellbeing, with spend on keeping fit reducing by 6% (£2.4m) compared to summer.
The demand for live entertainment continues to grow
Spending on entertainment, particularly on concerts, saw a £4.7m (7%) increase year on year and is up 4.5% compared to summer, highlighting how consumers are prioritising spending quality time with friends and family and memorable experiences. Ticketmaster experienced a significant surge in spending, with customers shelling out over £5.3 million during autumn alone. This marks a remarkable increase of £2.8 million (120%) compared to summer, with the boost likely driven by major artists, such as Coldplay and Sam Fender, announcing tours, as well as the release of 2025 festival tickets, including Glastonbury. Additionally, the trend of purchasing concert tickets as Christmas gifts could have contributed to this rise.
Recent research with UK consumers2 reveals a growing trend towards experiential Christmas gifts, with 23% of respondents purchasing concert tickets and another 23% opting for theatre tickets for their loved ones.
Eating out, holidays and UK stays drop down the ranks
As Christmas expenses rise and the dark winter nights draw in, Virgin Money’s customer data reveals a trend of cutting back in other areas – including eating out, holidays, and UK stays. This suggests a concerted effort to manage their finances and stay on top of their budgets during this busy time.
The total spent on eating out fell by £24m in autumn compared to the summer, a decrease of 8%. Similarly, total spend on holidays has decreased by £34m (25%) and UK stays spend is down by £8m (14%).
Over 65s have upped their spending
Of all the age groups, the 56-65 age group spent the most across autumn – a total of £168.8m, which is an 8% increase on last year. However, the over-65s showed the most significant growth, with a 14% increase (£17.1m) in their spend compared to autumn last year.
Andrew Carter, head of personal banking at Virgin Money, said: “As Christmas approaches, our customers are focusing on spending in areas like style and wellbeing to treat themselves and their loved ones. A significant trend we’re seeing is the shift towards more mindful shopping, highlighted by the impressive growth in Vinted sales. This indicates a strong preference for sustainable fashion choices and customers wanting to make their money go further during this expensive time of year. At the same time, customers are balancing their budgets by cutting back on other popular expenditures like eating out, holidays, and UK stays.
“At Virgin Money, we’re committed to helping customers manage and make the most of their money while still enjoying the festive season. Whether it’s through budgeting features in our app or savings products, we’re here to ensure they can celebrate without financial stress.”
The Virgin Money mobile banking app is packed full of clever tools to help customers budget, top up savings, and track their transactions to help people feel in control of their money. Virgin Money also offers a wide range of savings products to help customers make their money work for them.
To find out more about Virgin Money’s products and services, visit: www.virginmoney.com.
Sources
1Customer spend data sourced from Virgin Money current account customers who have actively spent in one or more of the lifestyle categories between September 2024 and November 2024.
2Survey carried out by OnePoll with 2,000 UK adults who celebrate Christmas, nationally representative on age, gender, region, between 28th November and 3rd December 2024.