webloyalty uk christmas retail research
TRANSCRIPT
LOOKING AHEAD… CHRISTMAS SPENDING & TRENDS IN THE UK
WEBLOYALTY & CONLUMINO
NOVEMBER 2014
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Introduction
Looking ahead ... Christmas 2014
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Webloyalty 2nd Floor, 2 Harewood Place, London W1S 1BX +44 (0)20 7290 1650 [email protected] www.webloyalty.co.uk
Conlumino 7 Carmelite Street, London EC4Y 0BS +44 (0)20 7936 6654 [email protected] www.conlumino.com
This research has been commissioned by Webloyalty to provide retailers with insight into the current trading environment as well as some more specific insight around Christms trading. About Webloyalty Webloyalty is a leading reward programme provider working with major online retailers to help them build stronger, more profitable relationships with their customers. Through our membership programmes we help our online retail partners’ customers save hundreds of pounds a year while providing the partner with an additional revenue stream. As well as incentivising customers to make repeat purchases at the partner’s site, members can also earn cashback and get great deals on everything from fashion to electronics to travel at hundreds of top online stores. Webloyalty was established in the UK in 2007 and has since expanded into France, Spain, Ireland, Brazil, the Netherlands and Turkey. About Conlumino Conlumino is a retail research agency and consulting firm. Our work focuses on all aspects of retailing and consumer behaviour, which we deliver through bespoke reports, projects and presentations. We work with many of the world’s leading retailers, property firms and those in the financial sector to help them maximize success through developing a thorough understanding of the sector and its likely future performance.
Foreword
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Summary
A sparkly Christmas While Christmas won’t be as lucrative as it was during the heady days before the economic downturn, we expect spending to sparkle this festive season with total growth of 2.7%. However, the spoils will not be evenly distributed with food and grocery struggling on a 1.5% increase. Spending on gifts will see an uplift of 3.3%.
We’re dreaming of … a traditional Christmas Spending to one side, most of us will celebrate Christmas Day in a fairly traditional way with 64% having a festive meal with family, 61% watching the television, and 60% opening presents. Only 14% plan to listen to the Queen’s speech and 12% will use the day as an excuse for a lie-in. A small 1.6% will catch up on housework.
Getting out the games 12% of us will be playing board games on Christmas Day. Our favourites include: card games (played by 9%), Trivial Pursuit (7%), Monopoly (7%), Scrabble (6%), and Charades (4%). Season’s greetings While many things have gone digital, 66% of us plan to send only printed Christmas cards, compared to just 3% who say they will only send e-cards. The average consumer is planning to send 27 cards this Christmas.
Time commitment The average consumer will spend around 10 hours on Christmas-related shopping activities, with a committed 4.5% spending more than 48 hours on shopping. The total budget will be an average of £433 with 6.6% budgeting £1,000 or more.
The festive table Almost half of us plan to spend £9.99 or less per head on the Christmas meal and most of us (67%) will do our shopping in physical stores. 81% will eat roast potatoes for Christmas dinner, 65% roast turkey and 65% stuffing. 5% will have steak.
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
2013 spending
In 2013 we spent £15.662bn on Christmas
Breakdown of 2013 Christmas spending
Total Christmas spending
£15.662bn
Gifts
£8.684bn
Seasonal non-food
£1.796bn
Food and drink
£5.182bn
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
2014 spending
This year we will spend just over £16bn on Christmas, up 2.7%
Breakdown of 2014 Christmas spending
Total Christmas spending
£16.080bn
Gifts
£8.969bn
Seasonal non-food
£1.850bn
Food and drink
£5.261bn
Gifts
Up 3.3%
Seasonal non-food
Up 3.0%
Food and drink
Up 1.5%
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Christmas Day
What will you be doing on Christmas Day this year? All figures are percentages
Having lunch with the family, watching TV and opening presents are the most popular things to do on Christmas Day
64.3 61.4 59.7
43.7
31.0 23.5
14.4 12.2 11.9 11.7 11.3 7.7 7.6 5.4 2.9 2.4 2.3 1.6
Have Christmas
lunch with my family
Watch TV Open presents Prepare and cook
Christmas dinner
Watch films Go out for a walk
Listen to or watch the
Queen’s speech
Play board games
Have a lie-in Listen to the radio
Spend time with my friends
Have Christmas
lunch with my inlaws
Go to midnight mass
or a church service
Play computer
games
Abroad on holiday
Work Wrap presents that I put off
wrapping before
Catch up on the housework
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
The games we will play
9.0% Cards
7.4% Trivial Pursuit
6.8% Monopoly
5.9% Scrabble
4.1% Charades
2.6% Pictionary
2.1% Cluedo
What games, if any, will you play on Christmas Day? All figures are percentages
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Essential purchases
What are your essential Christmas purchases? All figures are percentages
Just under three-quarters say that presents are an essential purchase; while over half say cards are still essential
70.5% Presents
57.3% Cards
45.5% Chocolates
29.7% Biscuits
28.8% Fruit
27.8% Nuts
25.5% Alcohol
18.1% Decorations
10.2% Champagne
3.6% Jumpers
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Spending
How much will you spend on Christmas gifts? All figures are percentages
Those who buy gifts will spend an average of £288 on them
17.2% will spend
under £100
15.0% will spend
£100-£149.99
13.9% will spend
£150-£199.99
15.7% will spend
£200-£299.99
11.5% will spend
£300-£399.99
8.5% will spend
£400-499.99
11.6% will spend
£500+
6.6% say that they will spend nothing on Christmas gifts this year
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Change in spending
How does your planned spending on Christmas gifts compare to last year? All figures are percentages
The majority plan to spend more or the same as they did last year
Plan to spend more than last year
Plan to spend less than last year
Did not buy last year and will not buy this year
Plan to spend about the same as last year
8.3% 21.5% 4.1% 66.1%
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
How we will shop
How will you shop for Christmas this year? All figures are percentages
The majority of people will use both online and stores
In store only
16.8% Numbers may not sum to 100%; residuals are accounted for by those saying ‘don’t know’.
Both online and in store
66.8%
Online only, while at work
1.1%
w
Online only, while at home
11.4%
h
Online only, at work and home
3.8%
h+w
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Sending cards
Are you planning to send printed or online Christmas cards this year? All figures are percentages
The vast majority are still planning on sending printed cards
Online only
Online and printed
Don’t plan to send any
Printed only
3.0% 15.5% 15.0% 66.5%
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Sending cards
How many cards do you plan to send this Christmas? All figures are percentages
On average we will send 27 Christmas cards each
1-10 17.0%
11-20 27.2%
21-30 21.3%
31-40 13.3%
41-50 8.8%
51-60 5.5%
61-70 2.6%
71-80 1.8%
81-90 0.7%
91+ 1.8%
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Spending on the meal
How much do you typically spend on your Christmas meal per head? All figures are percentages
Almost half spend £9.99 or less per head on the Christmas meal
19.7% will spend
under £4.99
28.9% will spend
£5 -£9.99
24.7% will spend £10-£14.99
11.9% will spend £15-£19.99
7.3% will spend
£20-£24.99
3.3% will spend £25-£29.99
4.2% will spend
£30+
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Online food shopping
Are you doing your food shopping online this Christmas? All figures are percentages
Most consumers prefer to do their food shopping in store
Yes Combination of online and in-store
Not yet decided No
7.3% 14.2% 12.0% 66.5%
?
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Why we buy food online
Saving time and convenience are the main reasons for buying online
63.2
43.2 36.8 33.5
19.4 9.7
It saves time It’s more convenient to have my food shopping delivered
to my door
I dislike shopping in store during the Christmas period
It works out cheaper I can buy products otherwise difficult to buy in store
I can guarantee that I will get the items I want
Why do you buy food online? All figures are percentages
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Where we’ll shop
Which of the following retailers are you planning to use for your Christmas food and grocery shopping this year? All figures are percentages
Over a third plan to use Tesco for their Christmas grocery shop
37.9
28.8 28.2
19.6 19.2 18.8 14.9 14.8
9.4 6.2 5.3
2.9 1.3 1.2 0.6 0.4 0.2
Tesco Sainsbury’s Asda Morrisons Aldi Marks & Spencer
Iceland Lidl Waitrose Other Coop Farmfoods Ocado Thorntons Booths Majestic Netto
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
What we’ll eat
Which foods do you usually eat as part of your Christmas meal? All figures are percentages
Roast potatoes are a favourite with 8 out of 10 eating them
80.9
65.4 64.9 57.3
49.3 43.7 43.4
37.3
27.7
16.1 15.3 14.2 14.2 8.8 5.6 4.8 4.1
Roast potatoes
Stuffing Roast turkey
Brussel sprouts
Parsnips Mince pies Christmas pudding
Cranberry sauce
Christmas cake
Bread sauce Roast chicken
Brandy cream
Roast ham Smoked salmon
Nut roast Steak Roast goose
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Time spent shopping
How many hours will you spend in total shopping for both Christmas food and gifts? All figures are percentages
On average consumers will spend 10 hours Christmas shopping
6.2
21.0
16.8
11.9 11.8
7.8 4.3 2.9 1.8 3.0 3.3 4.5
< 1 hour 2-4 hours 4-6 hours 6-8 hours 8-10 hours 10-12 hours 12-14 hours 14-16 hours 16-18 hours 18-24 hours 24-48 hours > 48 hours
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Total budget
What is your total budget for Christmas? All figures are percentages
The average consumer will spend £433 on all aspects of Christmas
16.5% will spend under £100
16.2% will spend
£100-£199.99
17.2% will spend
£200-299.99
13.8% will spend
£300-£399.99
12.7% will spend
£400-£499.99
17.0% will spend
£500-£999.99
6.6% will spend
£1,000+
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
The seasonal sales
When do you intend to take advantage of the seasonal sales? All figures are percentages
Almost half will not spend in the seasonal sales
49.6
13.9
3.0 4.2
9.7
18.7
3.0
15.7
7.9
I do not expect to spend anything during
the sales
Before Christmas Eve Christmas Eve Online on Christmas Day
Boxing Day 27th December – 31st December
New Year’s day 2nd January – 10th January
After the 10th January
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Sales shopping
How will you shop during the seasonal sales? All figures are percentages
Almost a fifth will only shop online during the sales
Online only
18.3%
Mainly online
50.6%
Both online and in store
31.1%
Which device or devices will you use to make your purchases online? %
Desktop PC 43.3
Laptop 56.3
Tablet 18.7
Mobile 6.5
Internet-enabled TV 0.4
Other device 1.0
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Present buying in the sales
Will you hold off until the seasonal sales to buy Christmas presents? All figures are percentages
Almost 25% will buy at least some presents during the sales period
Yes
5.4%
No
75.9%
Will buy some, but not all presents in the sale
18.7%
Methodology About the research
Methodology
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Methodology and sources
• A combination of consumer research, secondary research and market forecasting was used to compile this report.
• Consumer research in this report is based on a survey conducted with a nationally representative poll of UK consumers. Over 2,000 consumers were interviewed during October 2014 and questioned about their views on Christmas and their likely shopping behaviour for this event.
• All numbers relating to expenditure and forecast expenditure on Christmas products are taken from Conlumino’s own retail model. This is updated on an ongoing basis with inputs from official sources (such as the BRC and ONS), retailers’ results and trading updates, other secondary sources and industry surveys, Conlumino’s ongoing programme of research into consumer spending and habits, and underlying economic drivers and trends. Conlumino analysts both model and interpret this information to provide guidance on the likely future direction of retail expenditure at an overall, sector and category level.
• Unless otherwise stated, all sources of information are derived from Conlumino’s own research and should be referenced to Webloyalty/Conlumino.
Conlumino
+44 (0)20 7936 6654 [email protected]
7 Carmelite Street, London EC4Y 0BS
Webloyalty
+44 (0)20 7290 1650 [email protected]
2nd Floor, 2 Harewood Place, London W1S 1BX