UK Online Spending Growth Slows to 1.6% in H1 2025 as Retailers Eye Prime Day

Adobe Digital Insights reports that UK consumers spent £49.7 billion online between January 1 and June 25, 2025—a year-on-year increase of just 1.6%. Weak performance in May (-1.2%) and June (+1.4%) underlines a looming “summer squeeze,” despite ongoing discounting and low online prices.

June 2025 Highlights

  • £7.5 billion spent June 1–25, up 1.4% YoY
  • Video games surged 94% on normal levels, driven by the Nintendo Switch 2 launch and category promotions
  • Appliances: +20%
  • Jewellery: +15%
  • Apparel: +8%
  • Father’s Day boosted:
    • Books +21%
    • Gift cards +52%
    • Barbecues +42%
    • Cookware +16%

H1 2025 Trends

  • H1 spending: £49.7 billion, up only £800 million vs. H1 2024
  • Jan–Apr growth: +2.7%
  • May decline: –1.2%; June slowdown: +1.6%
  • Category price changes impacted spending power:
    • Electronics: –12.6%
    • Apparel: –8.0%
    • Furniture: –3.8%
    • Groceries: +2.8%

Prime Day in Focus

With mid-year sales flagging, retailers are banking on July’s four-day Amazon Prime Day to drive a surge in spending. To capitalise, they should plan complementary promotions and flash sales.

GenAI Revolution in Retail

  • AI search traffic to UK retail sites is up 1,200% since August 2024.
  • AI-referred shoppers spend 23% longer on-site than visitors from other channels.
  • AI conversion rates doubled between April and June 2025, closing the gap with non-AI referrals (non-AI conversions were only 38% higher in June, down from 89% in October 2024).

Brands must optimise for GenAI visibility. Adobe LLM Optimizer helps retailers appear in AI chatbots’ shopping results by tracking and improving “agentic” traffic from large-language-model platforms.

As consumer confidence remains fragile, harnessing Prime Day momentum and GenAI discovery will be crucial for retailers seeking growth in the second half of 2025.