UK Consumers Expected to Increase In-Store Spending this Christmas Season According to Deloitte Report
In a surprising turn of events, UK shoppers are anticipated to ramp up their spending this Christmas, albeit by a slight margin. Deloitte, a renowned analytics company, recently conducted a comprehensive study that suggests consumers in the UK are projected to up their spending by an average of £6 compared to last year. While this increase may seem modest, it indicates a noteworthy shift in consumer behavior within the UK market.
Despite the surge in online shopping trends, the majority of consumers still prefer the traditional brick-and-mortar shopping experience when it comes to buying gifts for the festive season. Deloitte’s annual Christmas survey, which gathered insights from over 800 participants, forecasts that the average spending budget in the UK is set to rise by 1.3% to £567. In contrast, the average shopping budget in mainland Europe stands at €461 (£395). However, when considering the impact of the current inflation rate, the 1.3% uptick could actually signify a decline in real spending power for consumers.
Of the projected £567 spending in the UK, the bulk is expected to be allocated towards gifts (£299), followed by expenditures on food and drink (£143), socializing (£63), and travel (£62). A significant portion of UK consumers (60%) still favor physical retail outlets for their holiday shopping, while 41% are likely to conduct their purchases either entirely or partially online. Moreover, 27% of shoppers intend to tap into click & collect services for their festive season shopping requirements.
The study further reveals a notable shift in shopping behavior, with over a third of consumers (34%) planning to wrap up their Christmas shopping in November rather than delaying until December. This emerging trend marks a departure from conventional shopping practices, where December typically saw peak shopping activity. Interestingly, only a scant 2% of consumers perceive Black Friday promotions as a substantial influencer in their spending decisions.
On the whole, the report indicates that UK consumers are adopting a more cautious and value-driven approach to their holiday spending patterns. While online deals may sway some purchase choices, the majority of shoppers still gravitate towards physical stores for their Christmas shopping excursions. This blend of circumspection and bargain-hunting tendencies underscores a nuanced shopping strategy that retailers should factor in while devising their seasonal campaigns.
For more information on consumer spending trends this Christmas, you can check out Deloitte’s official report here. Additionally, for insights into UK retail strategies for the festive season, you can visit this link here.
