According to a recent report by research specialist GlobalData, supermarkets are currently leading the way in the UK gift market, closely followed by department stores. The study, titled All Year Gifting in the UK 2019, identified Tesco and Amazon as the top two destinations for gift purchases in the country. Despite the dominance of these retail giants, department stores still maintain a significant share of the market.
The survey of 3,000 UK consumers revealed that 44.9% of those who bought gifts in physical stores opted for department stores. This suggests that department stores continue to be popular choices for special occasions such as weddings and birthdays. However, with major department store chains like Debenhams and House of Fraser facing closures, there is an opening for other retailers to capitalize on the evolving gifting market.
Retail analyst Emily Salter notes that department stores are preferred for their diverse selection of branded products, premium items, and the reputation of being ideal destinations for special gifts. The report underscores the importance of emphasizing quality and competitive pricing to attract consumers. With 53.1% of shoppers considering affordability when selecting gift retailers, it is crucial for businesses to offer value for money.
As online shopping gains traction, traditional department stores must prioritize their e-commerce platforms to stay relevant. The closure of physical stores could potentially impact their market share unless they successfully transition customers to online channels. Supermarkets, known for their affordable prices and diverse product offerings, are in a favorable position to capture more of the gifting market. Meanwhile, online retail giant Amazon is poised for continued growth due to its competitive pricing, extensive product range, and convenience for Prime members.
In summary, the UK gifting market is undergoing changes influenced by supermarkets and online retailers. Department stores need to adapt to shifting consumer behaviors, concentrate on quality and affordability, and enhance their online presence to stay competitive. The closure of major department stores presents opportunities for other retailers to secure a larger market share, provided they can meet the evolving demands and expectations of consumers.
For more information on the evolving UK gift market, check out these links:
BBC – UK Retail Chains Face Closures Amid Evolving Market
Retail Gazette – Gift Shops Offer Rebound to UK High Street
