{"id":163382,"date":"2020-11-13T13:00:30","date_gmt":"2020-11-13T13:00:30","guid":{"rendered":"https:\/\/www.theindustry.fashion\/uk-retailers-cautiously-optimistic-about-christmas-trading-with-online-sales-boost\/"},"modified":"2021-08-06T12:09:03","modified_gmt":"2021-08-06T12:09:03","slug":"uk-retailers-cautiously-optimistic-about-christmas-trading-with-online-sales-boost","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/uk-retailers-cautiously-optimistic-about-christmas-trading-with-online-sales-boost\/","title":{"rendered":"UK retailers \u201ccautiously optimistic\u201d about Christmas trading with online sales boost"},"content":{"rendered":"<p>UK retailers are<strong> upping their online capacity and plan to offer greater discounts<\/strong> as they prepare for an uptick in festive holiday spending, despite the uncertainty around physical store openings and holiday sales patterns, according to new research by Capgemini.<\/p>\n<p><!--more--><\/p>\n<p>Retailers are \u201ccautiously optimistic\u201d according to the annual holiday survey, with over a third (36%) of UK retailers expecting an increase in sales, and <strong>half of shoppers (51%) expected to shop more online this festive season<\/strong> than in previous years.<\/p>\n<p>In anticipation of this, <strong>91% of retailers have taken deliberate steps to bolster their online offering.<\/strong> An impressive 47% have improved their website or e-commerce proposition, while 37% have increased their web traffic capacity and 20% have introduced new virtual shopping experiences.<\/p>\n<p>To further attract customers, <strong>52% of retailers will offer greater discounts both online and in-store,<\/strong> while almost a third (31%) plan to offer a larger range of discounted products online.<\/p>\n<p>However, despite these preparations, retailers are less confident that they can accurately predict sales patterns this holiday season compared to last year (26% compared to 46% in 2019).<\/p>\n<p>The threat of lockdowns has been the leading cause of uncertainty for 62% of retailers, while half of retailers (49%) blame supply chain disruption and almost <strong>one in three (29%) say the data they base their planning on isn\u2019t accurate due to COVID-19.\u00a0<\/strong><\/p>\n<p>At the same time, <strong>only 11% consumers expect to spend more than usual this Black Friday,<\/strong> with just over a third (34%) suggesting they plan to spend less. Less disposable income was cited as the main reason for this (44%).<\/p>\n<p>VP Global Lead for retail customer engagement at Capgemini, Steve Hewett, said: \u201cThe holiday sales forecast for the UK is particularly complicated this year. <strong>National lockdowns have resulted in a large number of people building up savings,<\/strong> but three in five UK consumers we surveyed had no intention on using this on increased holiday spending.<\/p>\n<p>\u201cWhile it remains unclear just how much people will spend, it\u2019s the changes around how people will shop that appear more certain.<\/p>\n<p>\u201cThe second lockdown will inevitably lead to a further reduction in impulse purchases. With\u00a0<strong>50% of UK\u00a0consumers we surveyed planning to make more use of online in the run up to Black Friday and Christmas<\/strong> \u2013 even categories where demand will be strong will face a tough fight to capture the attention and spend of customers that have shifted online through choice or necessity.<\/p>\n<p>\u201cRetailers that have managed to improve their online operations and who have put in place new technology and processes to provide better experiences online and in-stores, while <strong>quickly growing their digital marketing muscles,<\/strong> will be best placed to capture sales this holiday season. They will have also set themselves onto a stronger footing for the inevitably digital-led shopping future ahead.\u201d<\/p>\n<p>Retailers aren\u2019t forgetting about the in-store experience though, and<strong> 94% of retailers have taken steps to attract customers in to their stores.<\/strong> Some 60% are restricting numbers in their shops to ensure social distancing, and 44% have introduced more touchless payment options.<\/p>\n<p>New lockdowns will hopefully not mean these efforts have been made in vain, as with restrictions due to relax in December in the UK, <strong>a late surge in Christmas shoppers could be more easily accommodated.<\/strong><\/p>\n<p>Trends revealed in the research suggests the biggest spenders this holiday season will be younger generations. More than a third (37%) of 18-24 year-olds and 40% of 25-34 year-olds say they have saved money since the start of the COVID-19 pandemic, with the intention of spending it around Black Friday and the holiday sales period.<\/p>\n<p>Consumers in higher income brackets are also more likely to spend more this year than previous years. Compared to a global average of 14%, <strong>38% of those on a salary of \u00a364,000 and above plan to spend more.\u00a0<\/strong><\/p>\n<p><a href=\"https:\/\/www.theindustry.fashion\/subscribe-now\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-144088 size-full\" src=\"https:\/\/www.theindustry.fashion\/wp-content\/uploads\/Daily-Newsletter-Banner.png\" alt=\"Newsletter banner\" width=\"1680\" height=\"268\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p> [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":136437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[16061,5,10585,6,10494],"tags":[4700,11718],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - 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