Sensible gifting takes centre stage as consumers embrace practicality this Christmas


Sensible gifting takes centre stage as consumers embrace practicality this Christmas

This Christmas, UK shoppers showed a clear shift towards sensible spending, prioritising useful, practical gifts over luxury and indulgence. New data from eCommerce provider Visualsoft saw that while overall Christmas revenue dropped by 4 per cent compared to 2023, average order value (AOV) rose by 21 per cent, reflecting the growing impact of thoughtful shopping and retailer incentives.

The season also marked the continuation of trends first seen during Black Friday and Cyber Monday sales, with Black Friday setting the tone for a practical and planned-out festive period.

Fewer orders, bigger baskets

Although total orders were down by 15 per cent compared to 2023, the higher AOV demonstrated consumers’ willingness to spend more strategically and free shipping thresholds, loyalty programmes, and bundle offers encouraged shoppers to increase basket sizes. The average value of transactions rose significantly in sectors like fashion (+66 per cent), DIY (+59 per cent), and electrical goods (+24 per cent), as shoppers focused on high-value, long-lasting purchases.

This shift suggests that consumers are spending less frequently but investing in items that offer durability and practicality, aligning with broader economic constraints.

Sector highlights: practicality tops the list

The 2024 Boxing Day sales also saw impressive growth in categories tied to utility and everyday improvements:

  • DIY sector revenue surged by 173 per cent YOY driven by an increase in home improvement gifts such as tools and supplies.
  • Office goods saw revenue increase 35 per cent as people look to kit out their space for homeworking.
  • Furniture and home furnishings sales were up by 10 per cent, reflecting shoppers’ preference for upgrading essentials rather than indulging in non-essential luxury items.
  • Electrical goods saw a 56 per cent increase in revenue, with practical goods winning out.

On the other hand, sectors traditionally associated with luxury, such as health, beauty, and cosmetics (-20 per cent) and fashion (-27 per cent), and footwear (-28 per cent), experienced significant declines in total revenue, despite AOV rising, suggesting a move away from indulgent spending for many.

Black November leads to early spending

The growing prominence of Black Friday and Cyber Monday sales, now often extended into ‘Black November,’ fundamentally reshaped holiday spending patterns. Early promotions captured a significant share of the festive budget, allowing consumers to plan purchases while taking advantage of discounts. Black Friday revenue rose by 35 per cent compared to 2023, underscoring the success of these extended sales periods. Retailers who maintained momentum with early sales saw better performance, as shoppers sought deals well before Christmas week.

Retailer strategies pay off

Retailers adapted to these changing habits by employing strategies to maximise transaction sizes:

  • Free delivery thresholds encouraged shoppers to add more items to their carts.
  • Loyalty programmes and points-based incentives rewarded bulk purchases, creating value for both consumers and retailers.
  • Extended sales periods helped shoppers spread their budgets across the season, minimising the pressure of last-minute purchases.

Looking ahead to 2025

Ashley Wright, ChiefCommercial Officer at Visualsoft says: “Around Christmas 2024, we saw a definitive shift in consumer behaviour, with shoppers prioritising practicality and long-term value over fleeting luxuries. This isn’t just a reaction to economic pressures; it’s a sign of more thoughtful spending. Sectors like DIY, home furnishings, and electrical goods flourished because they offer something consumers increasingly want: utility, durability, and meaning.

“For retailers, it’s a wake-up call to focus on delivering value-driven promotions and meaningful incentives like free shipping and rewards. Shoppers are telling us what matters most, and those who listen will be best positioned to thrive in 2025 and beyond.”

The 2024 Christmas season provides valuable lessons for retailers. Practicality, early sales, and targeted incentives have become essential to capturing consumer interest in an era of careful spending. Looking ahead, brands that emphasise long-lasting, functional products and continue to reward bigger baskets through free shipping and points will be well-positioned for success in 2025.

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