UK Christmas shoppers focus on value, expect higher returns

A recent YouGov survey reveals significant insights into consumer shopping habits in the UK around the Christmas period, with emphasis on the influence of holiday sales, social commerce, and increasing returns.

According to the study, nearly half of consumers (48%) who purchase Christmas gifts report they are not influenced by widely publicized sales events such as Black Friday and Cyber Monday. Despite financial pressures, 69% of these consumers indicated plans to maintain or increase their spending compared to last year, with 20% intending to spend GBP £500 or more.

Additionally, the research highlights a shift towards new platforms, with 19% of consumers planning to use TikTok Shop for their Christmas shopping this year. Still, amongst those who are deal-oriented, a substantial 43% are poised to wait for enticing promotions before initiating their holiday spending.

Around 63% of these deal seekers are holding out for discounts of at least 20%, while nearly 10% of respondents will not make purchases until products are discounted by half. This data was gathered by surveying 2,085 UK consumers and commissioned by Advanced Supply Chain and its sister company, ReBound Returns.

Ben Balfour, Managing Director at Advanced Supply Chain, commented on these findings: "Shoppers are planning to spend this Christmas but continue to be driven by value. Consumers' shopping habits are not as predictable as they once were because they expect year-round promotions and discounting and are buying through an increasing number of channels with each year. For retailers, this means real-time supply chain visibility and a full picture of availability of stock will be the difference between the retail winners and losers this year."

The study further identified that nearly a third of consumers (29%) confessed to returning items purchased under heavy discount influences. Specific festive occasions appear to amplify this trend, as 28% of those buying single-use outfits do so for Christmas parties, and 15% for 'Christmas Jumper Day'.

Moreover, a notable 38% of "one-off-wear" shoppers admitted to purchasing clothing and accessories during the holiday season with the intent to return them post-use.

Jelle Schoenmaker from ReBound Returns provided insights into the retail impact of these trends: "Sales and social shopping both lead to impulse buys and spikes in retail returns. Consumers will prioritise brands which offer a positive, frictionless returns experience as this is a key part of their shopping experience."

Schoenmaker highlighted the importance of returns processes: "It's also an opportunity for retailers to understand more about their customer and glean product feedback. Brands need to capture accurate returns data so they can quickly pinpoint and fix any problem areas before the peak period is over. Another data point for improvement is the state of the returned items. With consumers returning items after they have worn them, it is time for the retailers to decide whether such returns should be fully refunded. Having returns grading in place will allow brand to have the necessary data whether they will be acting on it or not."

Schoenmaker concluded with expectations for future returns activity: "This year we're expecting an even bigger spike in returns. There's still time for retailers to improve their returns set-up. Having proper insights in place will lead to fewer returns and better performance throughout the entire peak season and into 2025."