Research released by Blackhawk Network (BHN) highlights the critical importance of retailers listening to the ever-changing landscape of consumer behaviour when building their Christmas strategies this year. Every year shoppers are evolving, and as the cost-of-living crisis continues to have impact, these insights are becoming more valuable to retailers.
The survey of over 500 shoppers across EMEA seeks to understand consumer behaviour across the regions and pulls out learnings on how UK retailers can optimise their Christmas strategies. This year the research revealed that consumers are still seeing shopping as fun, with nearly half (43 per cent) of UK shoppers describing themselves as impulse shoppers, and 53 per cent sharing they love ‘retail therapy.’ However, it must be noted that 50 per cent of UK shoppers still admit to finding holiday shopping stressful.
Shopping timeline shifts forward to spread costs
This year, money and budgeting issues could contribute to the stress of Christmas shopping, with 70 per cent of UK consumers stating that they are concerned about inflation. In fact, 19 per cent of UK respondents plan to start Christmas shopping earlier than they did last year, and 41 per cent planned to begin in October or earlier. Of those shopping earlier than last year, nearly half (47 per cent) are doing this to avoid having to spend on everything all at once, whilst 42 per cent say this is because they want to budget Christmas spending. The findings imply that the UK’s segment of ‘savvy’ shoppers is on the rise, however only 7 per cent of UK consumers plan to use Black Friday deals to support their Christmas shopping budgets. More recently, consumers have tended to steer away from shopping on the discount day, as it can encourage excess spending, negating the savings on offer.
Bargain Hunters
The rise in uncertainty in the economic climate, does mean that UK shoppers are still on the hunt for bargains to alleviate some of the financial pressures around the Christmas season. 58 per cent of consumers plan to buy store-owned or less expensive brands in the lead up to the season, whilst also planning to use coupons (25 per cent) and promotions (35 per cent) more in the same period.
Buy now, pay later grows in popularity
UK consumers’ concerns over costs also play out in their intended purchasing methods. Close to a fifth of UK respondents (19 per cent) plan to use a buy now, pay later in 2023 for Christmas shopping, compared to 13 per cent last year. This tactic is far more popular in younger generations, rising to 35 per cent in Gen Z shoppers, compared to just 3 per cent of Boomers. In addition, more UK consumers are planning to use a credit card to purchase Christmas gifts this year (44 per cent), compared to last year (37 per cent).
Gift Cards
Gift cards remain a popular choice with 100 per cent of UK consumers stating they have purchased a gift card in the last 12 months. Last Christmas 73 per cent of UK consumers bought one. The gifting of gift cards was most popular with Gen Z (89 per cent) and younger audiences (85 per cent). However, the Boomers are not to be ignored, with 56 per cent of them also purchasing them. It therefore comes as no surprise that this Christmas there is a huge opportunity for retailers when developing their seasonal gift card strategy.
Share