UK shoppers tap BNPL services and use AI solutions for ideas as online spending hits £8.3 billion in April

New data from Adobe, powered by Adobe Analytics, reveals UK online spending reached £8.3 billion in April, up 2.5% on the £8.1 billion splashed out in April 2024, bringing total online spending for the year-to-date to £34.4 billion (+2.5% YoY). 

With consumer confidence dipping to its lowest level since November 2023 amid economic uncertainty and forecast rises to prices and household costs, UK shoppers headed online to secure the cheapest prices for their goods. 

Adobe’s data – which monitors actual online transactions from billions of visits to retail sites from UK consumers and tracks the online prices of 100 million SKUs across 18 product categories – found that prices across the e-commerce landscape were 3.5% lower in April compared with the previous month, with grocery prices down 1.5% over the same period.  

April’s figures also found that more UK consumers were economising by substituting their normal products for cheaper alternatives. On average, the share of sales of the most expensive goods across all online retail categories fell by 3.7% compared with the previous month, and by 10.4% compared to April 2024.   

The increase in trading down in April 2025 compared with March represents a reversal of the spending trends observed in previous years in which the share-of-sales of the most expensive products typically increases by 3-5% from March to April. 

“Economic uncertainty and expectations of rising prices and living costs made consumers reluctant to spend in April,” says Taylor Schreiner, Head of Adobe Digital Insights. “Online shoppers are only getting better at finding great deals and the lowest prices for their items. For retailers, though, the trend of ’trading down’ to cheaper versions of the same item highlights another challenge: How to attract price-sensitive buyers while protecting already squeezed margins.” 

BNPL and AI

UK shoppers spent £1.28 billion through buy now pay later services in April, representing 15.4% of total monthly spend. BNPL usage for April 2025 is down 1.7% YoY.

Referrals to retail sites from AI sources grew by 13% compared with March, contributing to 630% growth since August 2024  A survey of 2,000 UK consumers commissioned by Adobe in February found that 35% have used AI assistants when shopping online, for research (46%), sourcing product recommendations (44%), creating shopping lists (38%), gift inspiration (37%) and finding the best prices for products (29%).

RTIH AI in Retail Awards

RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Wednesday, 3rd September.

This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.

Please email our Editor, Scott Thompson, if you have any questions or need further information: scott.thompson@retailtechinnovationhub.com

Key 2025 dates

Friday, 18th July: Award entry deadline 

Tuesday, 22nd July: 2025 finalists revealed

Wednesday, 23rd July - Friday, 8th August: Judging days

Wednesday, 3rd September: Winners announced at the 2025 RTIH AI in Retail Awards Ceremony, to be held at The Barbican in Central London.