Jingle bells: Retailers set for bumper ‘golden quarter’

Christmas_2023_2Retail marketers are set for the biggest “golden quarter” since 2021, with consumers planning to shop earlier this year amid renewed confidence following years of economic stagnation and hardship.

So says a new report from Havas Media Network UK, which appears to show the Government’s gloomy outlook is not being shared by the wider public.

In fact, this year, two-thirds of Brits (67%) say they plan to spend the same or more, compared to just 45% two years ago, with 8 million adults in the UK expected to increase their spending this Christmas.

A change in the mood music across the country means 3.7 million fewer Brits expressed concerns about affording Christmas in 2024 than two years ago, according to the survey of 2,000 UK consumers.

Coveted young shoppers who have faced the brunt of the economic challenges for the past few years are driving the return of spending confidence. A quarter (23%) of 18- to 34-year-olds planning to spend more than 2023, which is a 12 percentage point increase from 2022.

No category of the eight assessed by the research looks set to miss out on the bumper Christmas. The categories that will see the most notable increases in spending intent are food and drink, 29% of Brits expect to spend more this year; clothing (24%) and health and beauty (20%).

Brits are also moving towards a more values-based gifting approach, with around 1 in 5 UK adults looking to buy more experience-based gifts this year.

In a boon to the retail sector subdued in recent years, a quarter of Brits expect to begin Christmas shopping as early as October, extending the festive shopping period to Black Friday and Cyber Monday.

Meanwhile, three-quarters (71%) of shoppers will be on the hunt for finding deals – the highest proportion in four years – providing an opportunity to retailers whose festive strategies to harness Black Friday and Cyber Monday.

Online channels are leading the way in providing inspiration, with 2 in 5 Brits relying on online search and 1 in 5 turning to social media for Christmas shopping ideas, making it essential to leverage AI and digital tools for personalised and targeted campaigns, the report claims.

In a further boost to the high street, more than half of consumers [53%] are eager to return to in-store shopping this Christmas.

As always, Christmas advertising remains a cherished part of the season for many, with two-thirds (66%) of consumers viewing it as a festive tradition. The report maintains that brands can lean on this sentiment to ensure campaigns evoke nostalgia, humour, and emotional connections, strengthening brand awareness and consumer loyalty.

Havas Media Network chief planning officer Jackie Lyons said: “Although inflation continues to rise, it’s at a slower rate, and households are adapting by becoming increasingly financially savvy.

“To cut through the Christmas clutter and appeal to these discerning shoppers, brands need to focus on two key strategies. Firstly, they must be more relevant than ever by addressing genuine consumer needs and adapting to evolving behaviours. Secondly, finding innovative ways to stay salient by maintaining emotional connections with customers will be crucial.

“Leveraging digital channels, data, and AI to create personalised and engaging campaigns will help to achieve this. Brands that authentically align their festive strategies with these insights will lead the way this holiday season.”

The study appears to back a previous report from the IPA – published in July – which revealed that this year the average British consumer expects to spend almost £600 on core festive-related products and activity, including food, gifts, decorations, socialising and travelling.

The IPA’s “2024 Christmas Consumer” report, carried out by Opinium, quizzed 2,000 UK adults and showed expected spend is highest among 35-44s (£723.40) and over 75s (£607.60) and lowest among 65-74s (£486.60) and 55-64s (£489.60). Parents also expect to spend considerably more (£654.40) than those without children (£397.90).

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