Online spend set to exceed last year’s Christmas sales by £1.1bn
New insights from Experian, in partnership with Reward, reveal that consumers – despite the festive tradition of heading to the high street – are likely to do more of their Christmas shopping online this year than previously.
This is according to analysis based on transaction data from over 4 million UK cardholders across more than 4000 retail brands, which found year-to-date online spending rose by 4% compared to the same time 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 ‘Golden Quarter’ (November to January), 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.
Brits embracing sustainable shopping
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.
Interestingly, this growth is not just driven by younger consumers but also by older age groups. 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 £363 million in the Golden Quarter, an additional £111m increase on the same period the year before, as more consumers turn to sustainable gifting options.
Social commerce boom
Advances in tech have 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 Golden Quarter – up by £123m in 2023 – as highly influenced shoppers are drawn to Christmas deals while browsing their feeds.
Gifting memories over materials
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’s more, spend analysis from experience providers shows a steady 6% year on year sales increase, 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.
Colin Grieves, managing director, marketing services, Experian UK&I, said: “For many businesses, the Christmas period is understandably the most important time of year.
“Shopper habits continue to evolve and its 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.”
The consumer insights from Experian and Reward have been published in a new report, and is the start of regular series which will highlight new and emerging spending trends from UK consumers.
To download the report visit: www.experian.co.uk/content/dam/marketing/uki/uk/en/pdf/Experian-Marketing-Christmas-Spend-Projections-2024.pdf
