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When the UK government imposed a country-wide lockdown in March, consumers had little option but to change their spending behaviour. As stores closed and long-term travel restrictions were put in place, consumer spend shifted to other areas such as eCommerce and home delivery. But are these changes permanent or has the reopening of non-essential retail and dining helped spend return to their pre-lockdown status?

UK share of spend

Firstly, let’s look at how share of spend across the main consumer categories has changed in the UK. To do this, we analysed a whole-wallet view of consumer spend across the UK (minus direct debits) to illustrate the percentage share of spend each industry has received over the last six months:

The first noticeable trend is the significant increase in spend share for grocery and retail. In February, the total share for these two markets was 69%. In the first full month of lockdown (April), this share jumped to 89%. Despite physical non-essential stores having to close from 24^th March, the Retail market still benefitted from online sales, with online businesses such as Amazon and Boohoo, seeing significant spikes in sales year-on-year (YOY).

The grocery market began seeing increased sales from the beginning of March as panic buying gripped the UK. This trend continued throughout lockdown; however, we’re beginning to see grocery spend share coming back down to pre-lockdown levels.

The industry with the biggest share loss was travel; falling from a 12.1% share in February to 1.6% in April due to travel restrictions and quarantine. The positive for the Travel industry is that there are signs of recovery. An easing of travel restrictions in the summer months has led to an increase in spend, however with more consumers preferring a “Staycation” rather than an international holiday, spend share has not yet reached pre-lockdown levels.

With doors finally opening in July, albeit with reduced capacity due to social distancing measures, dining is also beginning to show signs of recovery. With the government’s Eat Out to Help Out scheme also proving a big success in August, initial signs are that consumers are gaining confidence in eating out and, more importantly, going back to the pub!

Non-essential retail: what’s happened since reopening

As discussed above, the ability for consumers to shift their sales online meant that the retail market in some quarters actually benefitted from the lockdown. This, coupled with a the fall in Dining and Travel sales, helped retail increase their share of spend.

Notwithstanding, most non-essential categories saw a major downturn in sales during the lockdown. Switching to look at year-on-year (YOY) sales, many retail categories saw a significant drop in sales during the first month of lockdown:

• Fashion: -61%  
• Home & Garden: -56% 
• Sports & Outdoor: -46%

However, the gradual opening of non-essential retail has provided a significant boost in sales as consumers were keen to get to back to shops:

• Home & Garden: +40% 
• Child & Infant: +22%     
• Sports & Outdoor: +22%

It’s been a different story for fashion. Despite stores opening in June in most of the UK, fashion sales were still down -5% YOY. This could be due to factors such as delayed opening to some stores, the permanent closure of others, and shopping centres applying stricter social distancing measures.

Whilst consumer need for eCommerce isn’t going to disappear anytime soon, what we have seen is a decline in dependency for online media and eCommerce transactions. Whilst still enjoying increased YOY sales in every month since lockdown, these increases have declined since non-essential retail stores have opened, using the eCommerce and gaming industries as an example:

MarketFebruaryMarchAprilMayJuneJulyeCommerce+15%+21%+61%+95%+81%+42%Gaming-17%+20%+99%+61%+48%+35%

The impact of store openings is noticeable when looking at the different UK nations. Northern Ireland were the first to open their doors, and in May the Home & Garden category was up by 28%, whilst the UK experienced a -4% drop in the same period. This trend follows in Fashion, where English and Welsh sales were down -6.2% and -2.9% respectively in July, whereas Scotland (+2.5%) and Northern Ireland (+7.6%) registered increases versus July 2019.

With social distancing measures now understood and in place, along with the requirement of face coverings, marketers will be hopeful that, supported by targeted incentives to drive demand, this upward trajectory will continue for fashion and the rest of non-essential retail.

Actionable Tip:

As retail stores open and we head towards the traditional peak trading time, this presents a critical time for non-essential retailers to drive customers back into stores to give them confidence for the seasonal period ahead. At Cardlytics, we are helping retailers bring back lapsed customers, or those who have only favoured online spend during the last few months. Using our purchase insights, we can identify and target lapsed customers and provide well-timed targeted cashback offers through our native ad platform to keep customers engaged and drive repeat purchases.

Grocery: average transaction value vs. frequency

Before the lockdown was even announced, there was a significant shift in spend behaviour within the grocery market.

As we explore further in our UK State of Spend newsletter, panic buying and stock piling, in fear of a pending lockdown, resulted in an increase in average transaction value (ATV), as well as a fall in purchase frequency.

Now that the panic buying has subsided, and more stock is available, we’ve seen the YOY ATV increases drop each week. The worry for grocery marketers, in that the consumer frequency is still down YOY, and is trending flat week-on-week.

More insights on this are available in the August issue of the UK State of Spend

Actionable Tip:

The focus for grocery marketers now will be to find ways to either increase ATV to its initial lockdown level or get customers back to their stores more frequently. Cardlytics can help grocers identify and target low-frequency customers, or those with lower than average basket sizes. By incentivising these customers with a well-timed “spend stretch” cashback offer, Cardlytics can help grocers increase their ATV, whilst driving repeat purchases

Want more actionable insights?

There is no doubt that consumer spend has yet to normalise. With social distancing and reduced capacity still an issue, potential government incentive schemes and travel restrictions, we’re still likely to see dramatic shifts between industries, categories, and even buying channels.

We’re here to help you make sense of it all and find your most successful path forward.  With insight into 1 out of every 4 UK transactions, Cardlytics puts purchase insights into action every day for our advertisers through banks’ digital channels. Download our latest State of Spend document or contact us today for an analysis and campaign strategy customized for your brand.

Toilet paper. Board games. Flour. Athleisure wear. Home gym equipment. Hand sanitizer. Who could have predicted these would be the hottest selling items of 2020? With disinfecting wipes and hand sanitizer slowly returning to shelves, the biggest questions on the minds of marketers continue to be:

• How and where is the economy recovering?
• Where will consumers continue to spend their dollars?
• How do you engage and drive loyalty in this ‘new normal’?

As we surpass the six-month milestone of living in a global pandemic, we’ve taken a closer look at our purchase data to help advertisers answer these questions and more so that they can adjust their marketing strategies accordingly.

Overall Spend YoY

There is good news in overall consumer spend as it’s now the closest it’s been to pre-COVID levels, down just over two percent Year over Year (YoY). Categories have seen varying levels of recovery, ranging from General Retail to 8.8% Year over Year (YoY) and Restaurant rebounding to -9 YoY.

Recovery Leading Indicator

Our Recovery Leading Indicator (RLI) tracks spend in select discretionary categories to help brands measure consumer confidence during the recovery. It compares weekly spend in categories such as Salons, Apparel Retailers, Casual Dining and QSR restaurants, among others. After a low of -68% year-over-year (YoY) in April, the RLI is only down 15.5% through September.

And there are a few industry bright spots worth highlighting through September:

Travel Inches Forward

Travel continues to suffer as the pandemic sees new surges and restrictions remain, down 49% YoY. But, this hard hit industry has recovered significantly after dipping to its worst levels at -85% YoY in April. However, with four straight weeks of growth led by Alternative Lodging (+25% YoY in Sept.), the path to recovery continues.

Less traffic on the roads has been a bright spot for drivers throughout the pandemic so we’ve seen very little movement in fuel spend, currently sitting at -25% YoY since early June. As the holidays approach, we will look to see whether we witness another spike as people hit the roads again.

The pandemic has been the single most disruptive economic event of our lifetimes. More than 13 million people remain unemployed, about seven million more than pre-COVID. Given this instability, it is no surprise that consumer spend continues to vary widely across categories. With an advertising platform that reaches nearly 160 million bank customers, Cardlytics can help marketers create targeted campaigns that help answer: 

• When & where are customers starting to make in-store purchases?

• How quickly am I gaining or losing share vs. my industry?

• How is my eCommerce channel performing against my category?

• Are my newly acquired customers likely to churn?

Whether marketers are experiencing ups or downs in consumer spend, Cardlytics is focused on helping our clients navigate the times and drive measurable sales. Contact us today for an analysis and a campaign strategy customized for your brand.

With the winter shopping season just around the corner, we’ve put out a special edition of our Cardlytics State of Spend to help brands prep for a merry holiday season and make the most of other recent consumer trends. There’s something in this month’s report for everyone.

Highlights:

• Get actionable tips to prep for an omnichannel holiday retail season
• Discover why holiday restaurant sales may be at risk
• Find how online shopping is pacing across categories
• Explore whether customers are ready to travel again
• Learn how a grocery delivery service is holding onto their gains in market share

Want more insights like State of Spend? Let’s build a strategy

Cardlytics puts insights into action to drive measurable sales every day with precisely targeted advertising campaigns in banks’ digital channels. Reach likely customers as they manage where they’ll spend and save and give them a reason to make their next purchase at your store.

Contact us for an analysis and campaign strategy customized for your brand.

Be sure to check back for the October report and view the all of the Cardlytics State of Spend series here.

September is here, and with it, a back-to-school season unlike any other—for families and retailers alike. As schools delay reopening and many opt for virtual learning, the needs and timing of the traditional retail holiday have significantly transformed. Even Prime Day, the once unofficial kickoff to the back-to-school shopping season has been postponed to October.

So where, when, and how should retailers prepare to ramp up their 2020 marketing efforts? Cardlytics analyzed consumer spend behavior to identify what you need to know.

Back to school drives comeback for specialty retail

Although tardy, the back-to-school shopping season eventually arrived for specialty retail categories. As schools finalized reopening plans later in the summer, students and parents knew what to prepare for and began gathering necessities. Traditional categories like books, office supplies, and apparel saw week-over week gains in the last days of July and early August.

With many classes going virtual, families had to invest in new desks and laptops for their learn-from-home setups. This resulted in a late-summer boost for categories like home décor and technology. A hint that some students are starting to prep for in-person classes: shoe spend jumped up 13.1% week-over-week in early August, despite being down for the majority of July.

Tip: Reach customers before new habits solidify

It’s a busy time, and customers are rushing to prepare for new school-year routines and set their kids up for success regardless of whether they’ll be attending in person or virtually.  Marketers must act quickly to get their share of back to school spend before customers cross all their items off their lists.

Cardlytics helps brands acquire new customers by prioritizing people who are spending on back-to-school categories such as apparel and technology. Targeted ads in our native ad platform give customers a reason to make their next purchase — either in-store or online. Build loyalty by helping them save in a time when it matters most.

Postponed Prime Day to compete with Black Friday

Despite a slow start to the back-to-school season, retailers now have an opportunity to make the most of an even bigger retail holiday. With Prime Day now rumored for early October — a month before retailers normally offer holiday deals — retailers should prep for an unusually early holiday season.  Looking at Prime Day’s previous influence on the start of the back-to-school season helps us understand the impact it will have on this year’s holiday spend.

Over the past few years, growing Prime Day buzz has set the pace for when back-to-school shopping kicks off. As you can see in the chart above, which looks back at 2016 spend trends compared to 2019, the retail event pulled forward the back-to-school season from August / September to early July. Last year, as traditional retail brands offered their own versions of Prime Day sales, that week over indexed typical retail spend by 19% and drove continued higher spend in the following weeks.

Brands looking to win more than their fair share of winter holiday spend will need to start their marketing early to capitalize on the Prime Day buzz and keep momentum going through the end of the year.

Engage key holiday shopper segments starting this Prime Day

Cardlytics’ ad platform can help marketers maximize Prime Day momentum by precisely targeting holiday shoppers based on their spend behavior.

Reach more Early Birds

Start your holiday marketing in the weeks leading up to Prime Day — these shoppers will start checking off their gift lists as soon as the deals are in.

Reach more Deal Hunters

Use the Prime Day buzz to time your own campaigns and secure share of holiday budgets with deal-conscious shoppers who take advantage of Black Friday and Cyber Monday deals.

Reach more Steady Shoppers

Steady shoppers have the highest average holiday spend. Engage them consistently throughout the extended holiday season with rewards that drive repeat purchases.

Want more actionable insights?

There is no doubt that consumer spend has yet to normalize. We’re still seeing dramatic shifts between industries, categories and even buying channels. We’re here to help you make sense of it all and find your most successful path forward.  With insight into 1 out of every 2 U.S. card swipes, Cardlytics puts purchase insights into action every day for advertisers in banks’ digital channels. Contact us today for an analysis and campaign strategy customized for your brand.

These trends were recently featured in our Cardlytics State of Spend report, which follows important shifts in consumer spend and tracks early signs of recovery. Download our latest issue today and be sure to check back for the next issue.

Analysis in this article is based on data derived from the Cardlytics platform between March 5^th and August 13^th. While analysis is representative of purchase behavior, it does not include every customer or every financial institution on the Cardlytics platform.

Atlanta, GA – September 3, 2020 – Cardlytics, Inc., (NASDAQ: CDLX), an advertising platform in banks' digital channels, today announced it will present at the Keybanc Capital Markets’ Virtual Future of Technology Series.

Chief Financial Officer, Andy Christiansen, will present on Thursday, September 10, 2020 at 11:20 a.m. Eastern Time and it will be webcast live. The live audio webcast will be available on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. After the event, an archive of the webcast will also be available for a limited time on the Cardlytics Investor Relations website.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is an advertising platform in banks' digital channels. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, San Francisco, and Visakhapatnam. Learn more at www.cardlytics.com.

With access to 1 in 4 UK card transactions, Cardlytics helps marketers understand and respond to the impact of COVID-19 on their industries and customers. In parallel with our US State of Spend series, we are pleased to offer the third installment of the UK State of Spend, tracking weekly changes in consumer spend across the UK and actionable tips to drive growth.

Highlights

• Learn how the reopening of non-essential retail has impacted spend in the four UK nations
• Find out how the average grocery purchase amount and frequency have changed as customers form new habits
• Track dining's path to recovery leading into to the Eat Out To Help Out incentive

Want more actionable insights? Let’s build a strategy

Cardlytics puts insights into action to drive measurable sales every day with precisely targeted advertising campaigns in banks’ digital channels. Reach likely customers as they manage where they’ll spend and save and give them a reason to make their next purchase at your store.

Contact us for an analysis and campaign strategy customized for your brand.

Be sure to check back for the next report and view the all of the Cardlytics State of Spend series here.

Atlanta, GA – August 4, 2020 – Cardlytics, Inc. (NASDAQ: CDLX), an advertising platform in banks' digital channels, today announced financial results for the second quarter ended June 30, 2020. Supplemental information is available on the Investor Relations section of the Cardlytics' website at http://ir.cardlytics.com/.

“Despite the unprecedented environment in which we have been operating since mid-March, we have stayed focused and kept our foot on the accelerator, in terms of executing our plan for long-term revenue growth and profitability,” said Lynne Laube, CEO & Co-Founder of Cardlytics. “Consumer spending recovered throughout the quarter, and despite a slight pause in recent weeks, we are optimistic that we can narrow our year-over-year declines in the second half of 2020. We continue to see encouraging and exciting signs in our business that will support our long-term growth. These include the completed launch of Wells Fargo, which expands our reach to more than 150 million MAUs, as well as the extensive progress on our product development initiatives. We are also happy to announce that our self-service and automation platform is now being tested with several agencies. For these reasons, we believe we are extraordinarily well positioned over the long-term as the economy continues its recovery.”

"We remain committed to achieving our long-term goals and increasing shareholder value,” said Andy Christiansen, CFO of Cardlytics. “Our current capitalization and liquidity will provide us the financial flexibility to weather the economic downturn triggered by COVID-19 and continue with prudent, strategic investments.”

Second Quarter 2020 Financial Results

• Revenue was $28.2 million, a decrease of (42)% year-over-year, compared to $48.7 million in the second quarter of 2019.
• Billings, a non-GAAP metric, was $39.5 million, a decrease of (46)% year-over-year, compared to $73.8 million in the second quarter of 2019.
• Gross profit was $7.9 million, a decrease of (55)% year-over-year, compared to $17.7 million in the second quarter of 2019.
• Adjusted contribution, a non-GAAP metric, was $12.4 million, a decrease of (43)% year-over-year, compared to $21.8 million in the second quarter of 2019.
• Net loss attributable to common stockholders was $(19.8) million, or $(0.73) per diluted share, based on 27.1 million weighted-average common shares outstanding, compared to a net loss attributable to common stockholders of $(6.5) million, or $(0.29) per diluted share, based on 22.7 million weighted-average common shares outstanding in the second quarter of 2019.
• Non-GAAP net loss was $(10.2) million, or $(0.38) per diluted share, based on 27.1 million weighted-average common shares outstanding, compared to a non-GAAP net loss of $(2.7) million, or $(0.12) per diluted share, based on 22.7 million weighted-average common shares outstanding in the second quarter of 2019.
• Adjusted EBITDA, a non-GAAP metric, was a loss of $(7.7) million compared to a loss of $(0.6) million in the second quarter of 2019.

Key Metrics

• FI MAUs were 157.2 million, an increase of 31%, compared to 120.1 million in the second quarter of 2019.
• ARPU was $0.18, a decrease of (55)%, compared to $0.40 in the second quarter of 2019.

Definitions of FI MAUs and ARPU are included below under the caption “Non-GAAP Measures and Other Performance Metrics.”

Earnings Teleconference Information

Cardlytics will discuss its second quarter 2020 financial results during a teleconference today, August 4, 2020, at 5:00 PM ET / 2:00 PM PT. The conference call can be accessed at (866) 385-4179 (domestic) or (210) 874-7775 (international), conference ID# 4382929. A replay of the conference call will be available through 8:00 PM ET / 5:00 PM PT on August 11, 2020 at (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay passcode is 4382929. The call will also be broadcast simultaneously at http://ir.cardlytics.com/. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is an advertising platform in banks’ digital channels. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, San Francisco, and Visakhapatnam. Learn more at www.cardlytics.com.

The Cardlytics State of Spend helps marketers across industries track how consumer spend is changing each week and take action to drive measurable sales. In our August issue, back to school takes the spotlight as families pick up supplies for in-person classes, virtual learning, or both. Download the full report today to get an update on back-to-school spend and other must-know industry trends.

Highlights:

• See which retail categories are getting the biggest back-to-school bump
• Understand how the delay of Prime Day will impact Black Friday
• Learn how a specialty retailer is increasing sales from existing customers
• Discover how restaurant delivery sales are stacking up

Want more actionable insights? Let’s build a strategy

Cardlytics puts insights into action to drive measurable sales every day with precisely targeted advertising campaigns in banks’ digital channels. Reach likely customers as they manage where they’ll spend and save and give them a reason to make their next purchase at your store.

Contact us for an analysis and campaign strategy customized for your brand.

Be sure to check back for the September report and view the all of the Cardlytics State of Spend series here.

ATLANTA, GA – Aug. 4, 2020 – Cardlytics (NASDAQ: CDLX), an advertising platform in banks’ digital channels, today announced the appointment of OpenTable’s Chief Marketing Officer, Jessica Jensen, to its Board of Directors.

Recently elevated to CMO from her position as SVP Marketing, Jensen leads global marketing for the online restaurant-reservation service company. Prior to the coronavirus pandemic, Jensen led growth in customer acquisition on the OpenTable platform. Her current focus is helping customers regain confidence in the food service industry and embrace dining and travel again.

Before joining OpenTable, Jensen was the CMO of subscription meal delivery service Sunbasket. Prior to Sunbasket, she led global positioning, marketing strategy, and communications for Facebook as their Head of Products, Platforms, and Insights on the B2B front from 2014 to 2019. Previously, Jensen was Global Head of Product Marketing for iAd, a division of Apple, where she oversaw product development and marketing of the iAd mobile advertising suite. Preceding her time at Apple, she was Vice President of Lifestyles within the U.S. Media Group of Yahoo!.

Jessica’s deep understanding of the advertising industry will give us invaluable insight as we evolve our platform."

Lynne Laube, Cardlytics CEO and Co-founder

“Along with her expertise in the digital marketing arena, Jessica brings an engrained passion for restaurants and travel,” said Lynne Laube, CEO and co-founder of Cardlytics. “Jessica’s deep understanding of the advertising industry will give us invaluable insight as we evolve our platform.”

About Cardlytics

Cardlytics (NASDAQ: CDLX) is an advertising platform in banks’ digital channels. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, San Francisco and Visakhapatnam. Learn more at www.cardlytics.com.

PR Contact: ICR - cardlyticspr@icrinc.com