The Big Chill? Finding Warmth in a Cool Business Climate.
As 2025 draws to a close, the mood in UK business feels conflicted. The economy has cooled, with GDP growth slipping to 0.3% in the second quarter, and inflation creeping back towards 4% after months of relief. Retailers are openly bracing for a difficult Christmas, citing squeezed margins and more cautious consumers. At the same time, ad spending remains relatively buoyant, with forecasts still predicting over six per cent growth this year. The message is clear: companies are not walking away from marketing, but they are spending more carefully, asking more of every pound invested.
The Christmas season traditionally offers a burst of optimism for brands, yet 2025 looks set to be more restrained. Consumer surveys suggest that most households intend to spend less than they did last year, with many starting their shopping early in order to avoid last-minute price hikes. The high-street response has already begun to shift: loyalty schemes are being sharpened, early promotions rolled out, and storytelling is leaning into reassurance rather than excess. Tesco, for example, has raised its profit expectations on the back of its own festive campaign, betting that a mix of value and consistency will keep shoppers close.
For marketers, this creates a testing but not impossible landscape. The temptation might be to chase attention with steep discounts, but the more effective strategy often lies in presenting value as part of a wider story. People want to feel that their purchases are meaningful, that they are choosing products and brands that last, or that contribute positively in some way. This is where design, narrative and creativity can make the difference between being noticed and being overlooked. At Wodehouse, we are finding that campaigns built on emotional resonance - whether that’s sustainability, charity partnerships or simply highlighting human stories - are cutting through more effectively than price-led shouting.
There is also a tactical dimension to how campaigns should be delivered. The days of setting a Christmas plan in October and sticking to it until New Year are over. Brands need to move in shorter cycles, testing creative and reallocating spend quickly as the season unfolds. The most successful campaigns this year are likely to be the ones that are designed to flex - messages that can be tuned to different regions, assets that can be readily refreshed at speed and rolled out across social media, and budgets that can be shifted from underperforming channels without drama. It is not about being scattergun; it is about staying alert and responsive.
The wider business backdrop adds another layer. Dyson’s recent 50% drop in pre-tax profits, despite solid product sales, underlines how margin pressures can hit even the strongest brands. Deloitte has recorded its first revenue decline in the UK in fifteen years. Steelmakers are under emergency government support. These stories all point to an environment where resilience matters more than bravado. For marketers, that translates into campaigns that respect consumer caution while still offering reasons to engage. It is not about pulling back, but about being smarter with what you do release into the market.
We place narrative above discounting - telling stories that matter, whether that’s “gifts that give back” or projects tied to sustainability and community…
At Wodehouse, our own approach mirrors the advice we give clients. We design campaigns in modular ways, creating creative building blocks that can be adapted quickly as the season shifts. We focus on audiences first, running smaller performance campaigns that can be scaled once we see traction, rather than committing everything upfront. And we place narrative above discounting - telling stories that matter, whether that’s “gifts that give back” or projects tied to sustainability and community. Regional nuance is also important, with messaging tuned to local conditions, and every campaign monitored closely so that budgets can move quickly to where they will have the most impact. After Christmas, we will analyse results in detail, not simply to close the year, but to feed into stronger planning for 2026.
In many ways, marketing in late 2025 is a balancing act between caution and opportunity.
Most businesses are choosing the safer route, which leaves space for those willing to be more agile and more imaginative. The guiding principles are simple: stay adaptive, keep campaigns human, and protect return on investment without losing sight of emotional connection. The brands that manage this balance will not only weather a cautious Christmas but emerge stronger for the year ahead.
We love good design and aesthetics and don't feel it should cost the earth either. Across all areas of business and the charity sector Wodehouse have delighted our clients with graphic design, high quality print and direct mail solutions since 2003.