According to a report from Adobe Digital Insights, UK shoppers significantly increased their online spending during the festive season. This surge in online spending can be attributed to consumers looking for deals and discounts, with a year-on-year increase of 3.7%, totaling £24.4 billion from November 1st to December 31st. The popular discounting days of Black Friday, Cyber Monday, and Boxing Day were major contributors to this growth. On Black Friday alone, shoppers spent a whopping £1.04 billion, marking a 4.1% increase from the previous year. Cyber Monday saw a total spend of £881 million, up 7.4%, while Boxing Day sales prompted a £461.8 million spend, a 4.4% rise from the previous year.
The report also highlighted the growing trend of using buy-now-pay-later (BNPL) services among British consumers during the festive season. In 2023, consumers spent £3.3 billion through BNPL services, bringing the total amount spent in this sector to £16.8 billion. However, this could have a negative impact on early 2024 spending, as consumers will need to start paying their BNPL bills.
The study analyzed a vast amount of data, including hundreds of millions of visits to retail websites by UK shoppers and tracked the prices of 100 million products across 18 categories. It revealed that the most popular purchases during the festive season included personal beauty care, fragrances, and luggage/handbags.
Vivek Pandya, Lead Analyst at Adobe Digital Insights, commented on the findings, emphasizing the importance of discounts and BNPL services in driving online spending growth. Pandya stated, “After a slow start to 2023 in terms of online spending, our data shows an acceleration towards the end of the year, with a peak during the holiday period. Much of this growth can be attributed to retailers offering deep discounts and the increasing use of BNPL services, indicating that consumers are still mindful of their finances.”
Overall, this report underscores the significant surge in online spending by UK shoppers during the festive season. Bargain hunting and the convenience of online shopping were the key drivers behind this growth. The rise of BNPL services also played a significant role, and it will be intriguing to see how this impacts consumer spending in the coming months. Retailers should take note of these trends and continue adapting their strategies to meet the evolving demands of online shoppers.
Links:
–Adobe Digital Insights Report
–Retail Dive Article: Online purchases, BNPL services surge in UK during holidays
