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November 26 2007
Christmas confidence for UK retailers
American Express 2007 Retail Monitor survey reveals 90% of UK shoppers plan to do at least some of their shopping online this year.
We’ve been told by e-mail that we’re far too grumpy, and that we should be more positive about Christmas, so in order to redress the grumpiness quotient here’s a heart warming retail story from American Express.
UK retailers are expecting a “Merry Christmas” this year, according to findings revealed by the American Express 2007 Retail Monitor. Nearly half (46%) of retailers said holiday sales this year would be better than last year – a similar level of optimism compared to last year, whilst 52% (up 4% from 2006) think sales will be the same. Only 2% predict that holiday sales will be worse than last year.
The results are part of the second annual American Express Retail Monitor, a “barometer” of business trends and issues affecting the retail industry within the UK and Europe. The research underlined the economic importance of Christmas to UK retailers, with respondents expecting the festive season to account for 26% of their annual revenues.
According to the survey, consumer sentiment appears to match retailers’ positive outlook, with 88% UK Christmas shoppers planning to spend the same or more as they did on Christmas gifts in 2006. In addition, 12% said they planned on spending less. Overall, consumers planned to spend an average of £307 on gifts this year, while one in seven (14%) are planning to spend in excess of £500.
The Retail Monitor 2007 also revealed that 90% of UK shoppers planned to do at least some of their shopping online this year. Shoppers say buying online reduces much of the stress of the Christmas shop, providing a welcome respite from crowds (82%), parking problems (60%), and Christmas music (28%). For 7 in 10 online shoppers, price is the key driver.
However, with the increased popularity of online shopping at Christmas there are also some warning signs for e-tailers. In addition to potential challenges regarding delivery times shoppers admit to having abandoned buying something online because the site loaded too slowly (64%), or because the site is difficult to navigate (59%). Over a third of retailers (40%) admit to having their own concerns regarding the overall reliability of their online channel this Christmas and 19% expressed concern regarding prompt delivery of online purchases.
Despite the fact that a growing number of shoppers are going online this Christmas, bricks and mortar locations still lead the way as the most popular location for Christmas shopping, with UK shoppers planning to do an average of 56% of their shopping in stores and 7% planning to do their Christmas shopping via mail order. The most important factors driving the desire to shop in-store were getting to touch / see goods (80%) and guaranteed delivery (70%), rather than a desire to be immersed in the festive atmosphere (52%).
Now was that Christmassy enough for you?
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