Retail

84% of UK shoppers stick to holiday budgets this year

25 Nov '23

2 min read

Pic: Adobe Stock/Олег Фадеев

Insights

As the holiday season peaks, 84 per cent of UK shoppers are confident in their budgets, with many planning to spend as much or more than initially expected.
BFCM shopping is back to pre-pandemic levels, with 80 per cent intending to spend an average of $567, up 13 per cent from last year.
Online shopping dominates with 61 per cent of the budget.

As the peak of the holiday shopping season approaches, 84 per cent of UK consumers feel confident about sticking to their initial budgets, with plans to spend the same or more than anticipated in September. The Black Friday-Cyber Monday (BFCM) period is set to witness significant spending, as shoppers aim to maximise value through festive promotions.

BFCM participation levels have rebounded to match pre-pandemic figures, with 80 per cent of consumers planning to shop during Thanksgiving week, spending an average of $567—a 13 per cent increase from the previous year. Increased spending is attributed to buying more gifts at 51 per cent, updating non-gift clothing at 44 per cent, and adjusting for higher prices at 40 per cent, according to Deloitte’s 2023 BFCM Survey.

For many, BFCM shopping is a holiday tradition, with 57 per cent of shoppers eager to capitalise on deals. Forty per cent aim to complete all their holiday shopping in this period. Peak shopping days are anticipated to be Black Friday and Cyber Monday, engaging 65 per cent and 58 per cent of consumers, respectively.

Online shopping continues to dominate, claiming 61 per cent of the budget, while in-store spending remains significant, albeit slightly reduced from last year. Online spending this Black Friday is expected to reach $169 per shopper, a marked increase since 2019.

Millennials are leading the charge in BFCM spending, constituting 43 per cent of the total, with a notable inclination towards early morning in-store shopping. They also show a trend towards self-gifting, with 68 per cent planning purchases for themselves.

Despite BFCM’s prominence, early promotional events in October have impacted consumer behaviour, with those who participated in these sales likely to spend 25 per cent less during BFCM. Categories like clothing and accessories are predicted to be popular, while less-discounted items such as gift cards might see fewer purchases.

Fibre2Fashion News Desk (NB)

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