Christmas Shopping Habits - UK - January 2010

ISSUES IN THE MARKET
Key themes
Definition
Retail sales data
Abbreviations
FUTURE OPPORTUNITIES
Improving the online Christmas shopping experience
Less perspiration, more inspiration
Honing down the selection
Linking shoppers together
Putting the fun back into Christmas
Join the party!
Teach me to…
Dreaming of a greener Christmas
Less wasteful, still decorative
Give a little bit
MARKET IN BRIEF
Recovery in Christmas sales in 2009
Less discounting a big factor
Improvement in consumer confidence
Food retailers continue to increase share of spending
Wide variation in performance in non-foods
Home shopping has another good year
Wide disparity in consumer sentiment
Clothing and footwear the most popular gift choice
Preparations start early for Christmas
INTERNAL MARKET ENVIRONMENT
Key points
Plenty of promotions, but less all-out discounting
Promotions planned well ahead
Supermarkets invest heavily in lower prices
Online sales started early
Trading up for Christmas
A big Saturday Boxing Day
Retailers still reaping benefits of 2008 collapses
Internet growing in importance
Figure 1: British internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group and age group, 2002-09
BROADER MARKET ENVIRONMENT
Key points
Return of consumer confidence could be short-lived
Figure 2: Trends in PDI, consumer expenditure and GDP, at current prices, 2004-14
VAT back up to 17.5%
Unemployment levels out, but could rise again
Figure 3: Unemployment: four quarter average seasonally adjusted, January 2008-October 2009
Figure 4: Trends in consumer sentiment for the coming year, Jan-Dec 2009
More choosing to save their earnings
Population growth to boost Christmas spending
Figure 5: Trends in the age structure of the UK population, 2004-14
Figure 6: Trends in the socio-economic structure of the UK adult population, 2004-14
MARKET IN CONTEXT
Key points
Most important trading period of the year
Figure 7: Seasonal analysis of retail sales value – proportion of sales taken in December, by sector, 1995-2009
Bias to fourth quarter for home shopping companies
Figure 8: Seasonal analysis of retail sales value – proportion of sales taken in fourth quarter, by sector, 1995-2009
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Helping with catering worries
Opening a dialogue with shoppers
Celebrating with a penny bazaar
Harvey Nichols expands pop-up shop format
Increasing the heart rate
REVIEW OF CHRISTMAS TRADING 2009
Key points
Strong turnaround in Christmas trading
BRC reports big increases
National Statistics retail sales also up on 2008
Food retailers outperform market again
Figure 9: December, year-on-year change in sales value, by sector, 2007-08 and 2008-09
Home shopping companies have a good year
Figure 10: Fourth quarter year-on-year change in sales value, by sector, 2007-08 and 2008-09
Annual retail sales growth lower than 2008
Figure 11: Retail sales annual change, by value, not seasonally adjusted, 2007-08 and 2008-09
CHRISTMAS SPENDING PATTERNS
Key points
Little change in perceptions of Christmas spending
Figure 12: Perceptions of spending compared to last year, January 2008-January 2010
Wide disparity in consumer sentiment
Figure 13: Balance of sentiment on spending on Christmas compared to previous year, by age January 2010
Third age most likely to have cut back
Amount spent on gifts similar to 2008
Figure 14: Spending on Christmas gifts for close family and friends, January 2008-January 2010
Younger consumers spend less on gifts
Figure 15: Amount spent on Christmas gifts for close friends and family, by age, January 2010
Children push up the expense of Christmas
Wide variations in average gift spending from average
Figure 16: Average amount spent on Christmas gifts for close friends and family, by demographics, January 2010
CHRISTMAS GIFTING PATTERNS
Key points
Clothing extends lead as most popular choice
Figure 17: Comparison of purchasing of gifts, January 2008-January 2010
Giving vouchers or money just lazy or practical?
Experience gifts yet to take off
Charity gifts rise in the recession
Women the dominant Christmas gift buyers
Families likely to be buying from more categories
Figure 18: Top items bought as Christmas gifts, by Mintel’s Special Groups, January 2010
CHRISTMAS SHOPPING ATTITUDES AND BEHAVIOUR
Key points
Figure 19: Comparison of attitudes towards Christmas gift shopping, January 2008-January 2010
Most shoppers prepared a list for Christmas 2009
While half kept to their budget
Timing of Christmas shopping spread widely
Figure 20: Timing of Christmas shopping, by age, January 2010
Making the most of retailer promotions
Promotional offers have widespread appeal
Figure 21: Influence of price on Christmas shopping, by Mintel’s Special Groups, January 2010
Saving up for a good Christmas
Figure 22: Financing of Christmas, by age and socio-economic group, January 2010
Late December rather than January sales
Biggest spenders spend throughout the year
Figure 23: Average amount spent on Christmas gifts for close friends and family, by attitudes towards Christmas gift shopping, January 2010
IMPACT OF ONLINE ON CHRISTMAS SHOPPING BEHAVIOUR
Key points
Internet Christmas gift buying continues to grow
Figure 24: Usage of the internet for christmas shopping, January 2008-January 2010
Reducing the hassle of visiting crowded shops
Figure 25: Proportion buying most Christmas gifts using the internet, by age and socio-economic group, January 2010
Doing Christmas research online before buying
Figure 26: Use of the internet for gift ideas and comparing prices, by age and Mintel’s Special Groups, January 2010
Positive experience for most users
Figure 27: Evaluation of online Christmas gift buying experience by buyers, January 2010
Use of money-off vouchers not widespread
Internet buyers spend more on gifts
Figure 28: Average amount spent on Christmas gifts for close friends and family, by statements on usage of the internet for Christmas shopping, January 2010
CHRISTMAS SHOPPER TARGET GROUPS
Key points
 IDENTIFYING TARGETS
Figure 29: Christmas shopping target groups, January 2010
Leave It Late (19%)
Prepared Shoppers (27%)
Bargain Hunters (17%)
Apathetic (37%)
Bargain hunters getting the most for their money
Figure 30: Items bought as Christmas gifts, by target groups, January 2010
Lack of interest not a barrier to spending
Figure 31: Amount Spent on Christmas gifts to close friends and family, by target groups, January 2010
Internet buyers the biggest bargain hunters
Figure 32: Statements on internet shopping for last Christmas, by target groups, January 2010
RETAIL COMPETITOR ANALYSIS
Key points
All retail sales
Predominantly food retailers – includes all food, drink and tobacco specialists
Predominantly non-food retailers
Mixed goods – Non-specialised non-food stores
Clothing and footwear stores
Household goods stores
All other non-food specialists
Jewellers
Sports and leisure
Music and entertainment retailers
Toys and games retailers
Other miscellaneous non-food retailers
Non-store retailing
APPENDIX – CHRISTMAS SPENDING PATTERNS
Figure 33: Perceptions of spending compared with last year, by demographics, January 2010
Figure 34: Spending on Christmas gifts for close family and friends, by demographics, January 2010
Figure 35: Average amount spent on Christmas gifts to close friends and family, by demographics, January 2010
APPENDIX – CHRISTMAS GIFTING PATTERNS
Figure 36: Items bought as Christmas gifts, by demographics, January 2010
Figure 37: Items bought as Christmas gifts, by demographics, January 2010
Figure 38: Items bought as Christmas gifts, by demographics, January 2010
APPENDIX – CHRISTMAS SHOPPING ATTITUDES AND BEHAVIOUR
Figure 39: Shopping behaviour at Christmas, by demographics, January 2010
Figure 40: Shopping behaviour at Christmas, by demographics, January 2010
Figure 41: Shopping behaviour at Christmas, by demographics, January 2010
APPENDIX – IMPACT OF ONLINE ON CHRISTMAS SHOPPING BEHAVIOUR
Figure 42: Christmas shopping and the internet, by demographics, January 2010
Figure 43: Christmas shopping and the internet, by demographics, January 2010
Figure 44: Christmas shopping and the internet, by demographics, January 2010
APPENDIX – CHRISTMAS SHOPPER TARGET GROUPS
Figure 45: Attitudes towards shopping for last christmas, by target groups, January 2010
Figure 46: Christmas shopping target groups, by demographics, January 2010