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Festive shopping has started early this year as people look to spread their spending in the build up to Christmas, a new survey has shown.
Almost half of consumers started Christmas shopping before November with 53% worried about how they will afford the festive season, according to the EY Holiday Shopping Survey.
Retailers seem to be alert to the trend with festive promotions starting earlier this year and many retailers stocking Christmas goods alongside Halloween products.
Stores are still key to festive shopping with 70% of shoppers planning to make purchases in physical shops. However, most UK consumers will also be shopping online, with 70% planning to use online-only retailers.
Social media is now a powerful commercial medium with 20% of consumers expecting to purchase on the platforms. That rises to a third of Gen Z, who use social media for inspiration and rely on influencer and peer reviews.
“To succeed, retailers must have a presence everywhere—standout stores or pop-ups, and a strong proposition across all digital channels, including social media, to drive both online conversions and in-store traffic,” said Silvia Rindone, EY’s UK&I retail lead.
“This broad approach adds complexity, as retailers must also tailor their messages to meet individual consumer needs on the channels that matter most to them.”
The next few months are crucial for retailers to boost margin ahead of a rise in labour costs next year, Rindone said.
“Shoppers are willing to spend if the price is right, and the proposition is strong, so continuing to run as efficiently as possible while steadily improving the experience for customers is key.”
This week in the City
Imperial Brands, the tobacco giant behind JPS, Davidoff and Winston, reports it full year results on Tuesday. The company is facing a whole host of government measures designed to deter consumers from smoking but has so far remained extremely profitable.
The UK’s inflation figures are out Wednesday.
Britvic will post its first full-year results since it was acquired by Carlsberg on Thursday. The competition watchdog is currently investigating Carlsberg’s £3.3bn takeover and will take a view on whether it could harm competition in the UK’s drinks category.
Friday will see the first GfK consumer confidence survey since the government’s budget, alongside the latest UK retail sales.
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