With the holiday season quickly approaching, consumer spending surveys are becoming increasingly important for retailers to understand shopping trends leading up to Black Friday and Christmas. While some surveys suggest that consumers are planning to cut back on spending, a recent study conducted by consumer and location intelligence specialist CACI reveals that a significant percentage of shoppers are actually planning to maintain or even increase their Christmas budget.
According to the survey of 2,000 UK shoppers, 62% are intending to spend the same amount or more this Christmas. What’s more, 40% of these shoppers are waiting until December to do their Christmas shopping, anticipating that stores will have reopened by then. This indicates that the early Christmas shopping trend observed this year may not necessarily result in decreased spending in December.
The data from the study suggests that retailers can expect around £3 billion to be spent in December once stores reopen. Half of these consumers have deliberately postponed their shopping to be able to spend in-store rather than online. Those looking to increase their spending plan to add an average of £390 to their budget, while those aiming to spend less intend to reduce their budget by an average of £183. Overall, this points towards a healthy increase in total spend.
A noteworthy finding from the study is the online halo effect, where multichannel retailers are anticipated to benefit from around £1.6 billion of spend during the English lockdown, primarily through online channels. This marks an increase from the usual figure of 53% to 62% during November. This trend aligns with trends observed throughout the year, indicating that retailers with physical stores have seen larger growth in online sales compared to online-only retailers. Consumers have shown an inclination towards supporting their favorite store brands, even when brick-and-mortar shops are closed.
Alex McCulloch, the director of CACI, emphasizes the significance of the upcoming Christmas shopping season for retailers looking to recover losses incurred during the pandemic. While the survey results paint a positive picture for Christmas spending, they also highlight the rapid changes in consumer behavior. Retailers that can adapt to these shifts are likely to thrive, while those that cannot may struggle. The study underscores the critical role of multichannel stores in influencing consumer behavior, particularly in today’s challenging retail landscape.
To further explore the changing trends in consumer behavior and the impact on retailers, check out the following links: Link 1 and Link 2.
