UK shoppers are gearing up for Black Friday and the Christmas shopping season, with a strong focus on finding the best deals. According to the EY UK Future Consumer Index, 45% of UK shoppers plan to participate in Black Friday shopping, while 65% have been holding off on purchases in anticipation of the event.
Although there have been predictions of a resurgence in physical retail for the festive season, the report emphasizes the importance of having a strong online presence. A whopping 64% of UK consumers plan to search online for deals, compared to just 41% last year. Silvia Rindone, EY UK&I Retail Lead, highlights the need for retailers to offer omnichannel options such as click & collect and in-store returns to ensure a successful shopping season.
The report also reveals that consumers are cutting back on spending. Around 35% of UK consumers expect to spend less during the upcoming festive season, compared to previous years. The study, which surveyed 1,000 UK consumers, identifies millennials (aged 26-41) as the demographic that plans to cut back the most, with 40% of them intending to spend less this year. In contrast, only 27% of shoppers over the age of 58 plan to cut back on spending.
The rising cost of living is a major concern for consumers, with 87% worried about energy, water, and heating costs. While inflation is decreasing, consumers are still feeling the effects of last year’s rapid price increases. Younger shoppers are particularly affected, with 59% concerned about rising interest rates, compared to just a quarter of shoppers aged 42 and older.
In terms of the fashion industry and non-essential retailers, the report brings disappointing news. More than half of consumers (51%) plan to spend less on big-ticket items, and 43% intend to cut back on clothing and footwear purchases. However, there is a glimmer of hope, as 18% of consumers plan to spend more on “luxuries and small indulgences.” This could be attributed to the “lipstick effect,” where consumers treat themselves to affordable luxuries during uncertain times.
In conclusion, UK shoppers are prioritizing deals and bargains this festive season. The shift towards online shopping indicates the importance of a strong online presence for retailers. While consumers are tightening their belts, there is still room in their budgets for small indulgences. Brands and retailers must carefully plan their promotions to capture the attention of consumers during key shopping events like Black Friday and Cyber Monday. Additionally, it is crucial to understand the different spending habits of younger and older consumers in order to tailor strategies that meet their needs.
Useful links:
1. https://www.bbc.co.uk/news/business-54900090
2. https://www.bbc.co.uk/news/business-54897594
