Study shows Christmas shoppers spending less
Consumer spending at Christmas has dropped again and people are opting for “sensible” presents this year.
Retailers are fighting a losing battle to persuade shoppers to splash more cash at Christmas, new research shows.
Data from the Aston Centre for Retail Insights (ACRI) suggests that consumer spending is continuing to be squeezed, and that seasonal advertising is failing to engage adequately with the public.
The ACRI’s Christmas Shopping Survey 2017 shows consumers plan to spend an average of £408 each on Christmas presents – down from £429 in 2016 and £441 in 2015. That figure is all the more worrying for retailers against a backdrop of rising inflation.
ACRI researchers, based at Birmingham’s Aston University, also found 6% of those surveyed planned to avoid Christmas shopping completely.
Heiner Evanschitzky, Professor and Chair of Marketing at Aston Business School, said: “The challenges facing traditional retailers have been well documented but what is particularly worrying for them is not just that spending on presents continues to drop – it’s also that their messages simply aren’t engaging with consumers.
“Put simply, shoppers do not feel very inspired by Christmas offers. Those big-budget advertising campaigns are no longer enough – the average consumer now judges them to be only ‘somewhat emotional’ and it’s likely that shoppers are suffering from ‘festive fatigue’ where ad campaigns are concerned.”
When it comes to where people are shopping, high street operators appear to have adapted to the rise of online shopping, although speciality stores have been hit hard by online competition.
Some 80% of those surveyed for the ACRI intend to buy at least some of their Christmas presents online, and 15% shop with their mobile phone for gifts.
Local high street outlets are used by 50% of shoppers, major supermarkets by 47%, department stores by 42% and shopping centres by 40%. Those figures represent a stable share compared with last year but the outlook for speciality stores is less encouraging, with only 22% of shoppers intending to use them.
The most popular gifts to receive are the most “sensible”.
Prof Evanschitzky said: “The most desired Christmas presents this year are clothing and shoes, which are the choice of 28% of the people we surveyed.
“Almost a quarter of people – 24% – would rather choose their own present, saying they’d like to receive gift vouchers. And 19 per cent would just like to get away from it all, hoping to receive a holiday of some sort as a present.”
The ACRI study is based on a representative sample of 1,053 consumers aged 18-65 who live in Great Britain.