According to a recent report by Mintel, Christmas spending in the UK is projected to experience a minor decrease of just 0.4% this year. Despite lingering uncertainties among consumers, the total expenditure for the holiday season is anticipated to reach a substantial £81.7 billion, with non-food products accounting for £33.3 billion of that amount. One notable driver behind this spending trend is the increasing popularity of online shopping, as 51% of shoppers plan to buy more of their Christmas presents on the internet this year. This preference is even more pronounced among the younger age group, with 58% of individuals aged 16-34 opting for online purchases.
The surge in online shopping is expected to greatly benefit internet pureplay retailers, who are forecasted to generate an impressive £15.7 billion in sales during the festive period. With concerns about crowded shopping areas leading many to seek more convenient and safer shopping options, the closure of physical stores in November is predicted to further fuel this increase in online sales. In fact, online transactions are projected to make up 37% of all Christmas sales, experiencing a significant 58% year-on-year growth.
Interestingly, the report reveals that 19% of consumers plan to use credit as a means to finance their Christmas shopping this year. Moreover, a substantial 55% of younger individuals in the 16-34 age bracket consider gifts with ethical or charitable attributes to be particularly important. This indicates a notable shift in consumer mindset, with a growing emphasis on ethical considerations and sustainability influencing purchasing decisions.
While the slight decline in overall spending may raise concerns for retailers, the rise of online shopping and the increasing focus on ethical consumption reflect evolving preferences and priorities among consumers, especially the younger generation. As we enter the festive season, it will be intriguing to observe how these trends develop in the future.
To explore more about Christmas spending trends in the UK, you can visit Mintel’s official website here. For insights on ethical consumerism and sustainable shopping habits, check out this article here.
