Happy Clickmas: Retail brands ready for online bonanza

UK consumers are set to do more of their Christmas shopping online this year than ever before, and, despite the festive tradition of heading to the shops, it would appear Brits will spend hours swiping and clicking on their devices rather than pounding the streets.

That is according to an analysis based on transaction data from over 4 million UK cardholders across more than 4,000 retail brands, which found year-to-date online spending has risen by 4% compared to the same period in 2023, with instore purchases falling by 2%.

If this upward online trend continues, UK retail is set to benefit from an extra £28bn in spend during the so-called golden quarter; a £1.1bn boost on last year’s sales.

Beyond online and in-store sales, looking at year-to-date spending compared to the same period last year, the research highlights key shopping trends that have defined 2024 and are likely to shape how Brits approach Christmas gifting this year.

The analysis revealed that shoppers are increasingly turning to the second-hand market for sustainable bargains. A comparison of transactions at online second-hand marketplaces showed a 21% increase in year-on-year total sales.

However, this growth is not just driven by younger consumers older age groups are also getting stuck in. Shoppers aged 45-54 and 55+ have led the surge, with sales climbing by 56% and 59% respectively over the past year.

If spending with second-hand retailers continues at current rates, the sector could be set to generate £363m in the golden quarter, an additional £111m increase on the same period the year before, as more consumers turn to sustainable gifting options.

Advances in tech have also sparked a surge in social commerce, meaning shoppers can now buy directly from retailers without ever leaving their social media feeds. Comparing August sales year-on-year, spend insights show an impressive 32% jump.

If this trend continues, forecasts suggest a £212m boost to the sector this quarter – up by £123m in 2023 – as highly influenced shoppers are drawn to Christmas deals while browsing their feeds.

Insights drawn from spend on ticketing websites found an increase of 9% when compared to 2023. The growth can be attributed to millennials, with those aged 35-44 increasing their spending on tickets by 10% in the last year, compared to just 4% for those aged 18-34.

What is more, spend analysis from experience providers shows a steady 6% year on year sales boost, indicating that consumers are increasingly favouring experiences and one-off events. This trend suggests that people may look to prioritise special occasion purchases over traditional gifts this Christmas.

Experian UK&I managing director of marketing services Colin Grieves said: “For many businesses, the Chrismas period is understandably the most important time of year.

“Shopper habits continue to evolve and it is key for retailers to understand and anticipate how people are prioritising their spending. The good news is there is a great deal of insight available to brands to help them make a success of such an important time of year.”