Research shows consumers plan to cut back on spending this Christmas
New research has shown that more consumers are saying that they will be cutting back on their Christmas spending this year in light of the current economic situation.
The GfK Consumer Products and Retail’s Savvy Shopper study found that over a third of consumers (36%) claimed they would be cutting back, 10% more than last year.
However, the research revealed better news for online retailers despite bad weather conditions in December 2010 causing delayed deliveries of gifts and festive goods. One in four (25%) shoppers surveyed claimed they would shop more online this year than last and just under three-quarters (72%) said they would do some or all of their Christmas shopping online.
Nearly half said they were wary of postal problems (42%) or bad weather (38%), and have adapted their behaviour this year and started shopping online earlier than their high street counterparts. The study showed that 4 out of 10 (40%) of consumers, who will be doing the majority of their Christmas shopping online, started ordering in September and October, while only a minority will leave it until December.
This is in contrast to those planning to shop mainly in towns or on the high street, who will be doing the majority of their shopping in November and December.
The study showed that consumers are enjoying the benefits of increased ease of use and security when shopping online. According to the study, four out of ten (40%) agreed that websites were easier to use than they were a year ago, and nearly a third (32%) believed that online shopping security had improved. In addition, access to better or faster broadband seems likely to have contributed to a better online shopping experience for one third (33%) of consumers.
Pam Armstrong, managing director of GfK Consumer Products and Retail, said: “GfK’s findings mirror the concerns already expressed by some retailers towards Christmas trading and warnings of tougher conditions on the high street this year. There’s a big opportunity for retailers to take advantage of other channels such as the lucrative online shopping market, but to be competitive they need to win consumers’ confidence and provide a good customer experience.”
