According to predictions, Wednesday is expected to be the busiest spending day of the week, with a staggering £1.59 billion anticipated to be spent on festive purchases. However, despite this peak, overall gift spending for the Christmas season is falling behind compared to last year. This decline can be attributed to two main factors: the cost-of-living crisis and the timing of Christmas falling on a Sunday this year, giving shoppers an extra day to make their purchases.
The impact of the cost-of-living crisis is evident as gift spending for Christmas is projected to decrease by 6.8% compared to the previous year, amounting to a total of £11.59 billion. This figure not only falls short of 2020 and 2019 but also trails behind 2021’s spending levels.
Interestingly, even with many retailers closing their doors for pre-Christmas deliveries, millions of shoppers are still opting to make their purchases online. While physical stores are expected to see a significant spend of £1.03 billion on Wednesday, online spending is also predicted to be high, with an overall spending estimation of £1.59 billion. However, it is worth noting that e-commerce is expected to decline towards the end of the week as delivery options become more limited. Thursday is projected to witness an online spend of £0.47 billion, followed by £0.46 billion on Friday and £0.29 billion on Saturday.
In terms of the overall spend for the week, Voucher Codes forecasts that £1.31 billion will be spent on Thursday, £1.49 billion on Friday, and £1.26 billion on Saturday. An intriguing insight from the report is that £1.08 billion is predicted to be spent online on Sunday by 12 million shoppers. This is primarily due to the majority of physical stores being closed on that day. Furthermore, it aligns with the UK tradition of consumers engaging in Christmas Day shopping from the comfort of their homes. It is worth mentioning that clearance sales, which traditionally commenced on Boxing Day, now often start on Christmas Day itself. The hours following Christmas dinner have become a popular time for online shopping during this period.
Between 17 December and Christmas Day, a total spend of £12.11 billion is anticipated, spanning the nine days leading up to Christmas. Despite the decline in gift spending, the Christmas season remains a bustling and highly profitable time for retailers both online and in-store.
Useful links:
1. https://www.independent.co.uk/money/spend-save/christmas-shopping-spending-2022-money-b1979766.html
2. https://www.thesun.co.uk/money/27130900/biggest-spending-day-christmas-predicted
