62% of consumers will “spend more or the same as” last Christmas
New research from consumer and location intelligence specialist CACI has revealed that 62% of consumers say they intend to spend more or the same as last Christmas.
Giving a significant boost to the UK economy, the new data – taken from 2,000 people being interviewed across the UK on 3 and 4 November - indicates that retailers can look forward to £3bn of spend staying in shoppers’ pockets until stores reopen in December, as 40% of consumers plan on waiting until the shops reopen to do their Christmas shopping.
Half of those customers have intentionally delayed their shopping from November to December to spend in-store, rather than online.
For consumers planning to spend more, the average increase is likely to be an impressive £390, and the 38% of people looking to spend less this Christmas will only cut their spend by an average of £183.
Alex McCulloch, Director of CACI, said: “Christmas is going to be an even more crucial period this year, as retailers will be looking to make up significant consumer spend that they have lost throughout the pandemic. Our latest consumer survey is evidence there is still hope of a solid spending period for Christmas shopping, but it’s key that bricks and mortar retail can reopen at the beginning of December.”
During the lockdown, CACI’s research also shows there will be a significant uplift in the online halo effect, as retailers will still benefit from £1.6bn of spend, but will receive it via their online channels.
The online halo effect is the uplift in online sales due to the presence of physical stores. Generally, this figure is around 53% but, during November, CACI highlights it will increase to 62%.
McCulloch added: “This shows just how quickly consumers are changing their habits. Back in March, CACI found consumer trends moved forward five years in the space of two weeks, and this survey highlights the implications of such huge shifts in behaviour. Those retailers able to be flexible and adapt will benefit, leaving those that cannot, or will not, change behind.”
Additionally, the new data revealed that of those consumers deciding to switch from physical stores to online, 46% are going to purchase from the website of the specific brand that they can no longer visit in person, further highlighting the role of stores in shaping consumer behaviour.