What you need to know
The build-up to Christmas 2019 presented retailers with a unique set of challenges. Brexit uncertainty, both prior to the initial October deadline and then the general election of December, combined with a later-falling Black Friday placed a greater focus on value and conservatism in spending from consumers. The result was the lowest growth in value terms (+1.9%) since 2015 and a fiercely competitive environment where much of the demand was served during Black Friday or on promotion.
Those that trade on value, such as Aldi and Lidl, performed well whilst those at the upper-most end of the market, such as Fortnum and Mason, also had a good Christmas. However, the middle market was squeezed, and within that it was the online-only players who flourished. Store-based non-food sales were down 1.4% over November and December but non-store (which is predominately accounted for by online-only players such as Amazon) flourished with sales up 11.7%. Whilst 57% of consumers recognise that it is important to shop in-store at Christmas to support physical retailers, 58% say it is more convenient to shop online and over a third (39%) believe shopping in-store is more expensive than online. In such an uncertain market, value and convenience were the clear winners.
Indeed, average spending on gifts fell 3.8% to £326 in 2019, with a third (32%) spending the most during November where Black Friday falls. Sustainability concerns will have also played a role, albeit to a lesser extent than the desire for value, with 55% of consumers saying Christmas gift giving creates too much waste and 28% saying it is better to give one more-expensive gift than multiple smaller ones. Whilst the build-up to Christmas 2019 may have been unique, it is this trend, and the general greater focus consumers are giving to buying decisions, which has the potential longer-term to change gift buying behaviour towards a ‘less is more’ approach.
Products covered in this Report
This Report looks at the purchase and giving of gifts during Christmas 2019 as well as giving an overview of how key retail players performed during the 2019 festive season. It highlights the build-up to the 2019 Christmas period and the key trends as well as the impact Black Friday has on gift giving.
We look at:
The wider economic picture and build-up to Christmas 2019 and how this impacted consumer purchasing.
Retailers’ performance over Christmas and a breakdown by major sector.
The growth of online, how it is changing and its impact on the development of retailing.
The consumer research for the Report looks at:
Who buys Christmas gifts.
How and through which channel they were bought.
When they began their shopping and when they spend the most.
What they bought.
Who they bought for.
What they spent on Christmas gifts in 2019 and how this differed from 2018.
How they go about planning what they are going to give and buy as gifts.
Attitudes towards shopping at Christmas.
