NielsenIQ has published a new consumer study – Unwrapping Europeans’ Holiday Outlook – providing insights into this year’s Christmas trading period and how it could be impacted by the various economic challenges.
Results from a recent consumer survey in the UK confirm that increased food and energy prices, as well as supply bottlenecks, have an impact on consumer preferences. However, a majority of UK households stated they would like to celebrate Christmas like they have always done – without cutting spending.
Results showed that 62% of consumers in the UK are Christmas enthusiasts for whom emotional aspects such as enjoying the holidays with their family and celebrating with friends are very important. Cautious Christmas shoppers represent 39% of the consumers. NielsenIQ noted that this group is strongly affected by the increase in energy prices and is likely to reduce spending or advance purchases in expectation of even higher prices.
Meanwhile, the expected expenditure this Christmas was found to be equal or less than last year. 63% of UK households stated their budget on food and beverages (at home or dining out), gifts and travel will be the same as 2021’s budget. 27% would like to spend less money on these categories this year and 10% of the shoppers indicate they will increase their budget for Christmas.
Alwyn Venter, Senior Commercial Business Partner at NielsenIQ, commented: “In our Christmas study, we’ve seen how much emotional value the holiday has for consumers in the UK. The majority do not want to give up the usual traditions and spoil themselves and their loved ones with gifts and good food.
“At the same time, the budget for the festive season has remained the same or even decreased for most people. Consumers are aware of how important it is, therefore, to make the most of their budget, for example by shopping early and taking advantage of special offers.”
Looking at Black Friday and Cyber Monday, the majority of shoppers stated that they would like to shop if they spot good opportunities. Particularly when it comes to food (34%) and gifts (31%), UK shoppers said they are likely to take advantage of the two shopping events to buy gifts for themselves, their homes or other people in advance. 22% will buy food on these days if they find good opportunities, 25% will add gifts to their online shopping carts, and 34% of the respondents stated that they will be on the lookout for good opportunities in the beverages category.
NielsenIQ noted that supermarkets are the most popular shopping channel for food, beverages hygiene & beauty as well as gifts. 59% of the consumer spending on beverages will be made in a physical store and 51% of the food shopping will take place in a supermarket.
Cheese (68%), bread (66%) and chocolate (60%) are the top three food categories that UK consumers plan to buy this Christmas. In the beverage category, beers (52%), soft drinks (49%) and wine (37%) will also feature in shopping baskets.
Despite looking for more promotions, shoppers would not give up premium purchases during Christmas. 37% of the respondents stated they will purchase premium cheese, fresh meat and chocolate tables; 35% favour premium beer and 36% will choose premium wines.
Among the Christmas gifts UK shoppers will be giving out this year, clothing (43%), fragrances (37%), gift cards (35%) and gourmet products such as chocolates, sweets and wines (35%) were the most popular categories. 51% of the consumers said they will get inspiration from the internet, while 49% will visit physical stores.
NAM Implications:
- A last hurrah before Austerity 2023?
- i.e. the more they spend on ‘Christmas as usual’…
- …the more they will (have to?) cut back in January.
- And retailers need to match the mood.
