Research from CACI, the consumer and location intelligence specialist, indicates the UK economy will receive a significant boost from consumer spending this Christmas. According to the survey, 62% of consumers they will spend more or the same as last Christmas. In addition, CACI’s data reveals retailers can look forward to £3 billion of spend staying in shoppers’ pockets until stores re-open in December.
Other key highlights from the survey include:
- For consumers planning to spend more, the average increase is likely to be £390. By contrast, the 38% of customers looking to spend less will only cut their spend on average by £183
- 40% of consumers plan on waiting until the shops reopen next month to do their Christmas shopping. Half of these consumers have intentionally delayed their shopping from November to December to spend in-store, rather than online
- During the lockdown, CACI’s research shows there will be a significant uplift in the online halo effect, as retailers will still benefit from £1.6 billion of spend but will receive it via their online channels. The online halo effect is the uplift in online sales due to the presence of physical stores; generally this figure is around 53% but during November CACI highlights it will increase to 62%
- Of those deciding to switch from physical stores to online, 46% are going to purchase from the website of the specific brand that they can no longer visit in person, further highlighting the role of stores in shaping consumer behaviour
Alex McCulloch, Director of CACI, said: “Christmas is going to be an even more crucial period this year, as retailers will be looking to make up significant consumer spend they have lost throughout the pandemic. Our latest consumer survey is evidence there is still hope of a solid spending period for Christmas shopping, but it is key bricks and mortar retail can re-open at the beginning of December.
“That said, it also highlights just how quickly consumers are changing their habits. Back in March, CACI found consumer trends moved forward five years in the space of two weeks, and this survey highlights the implications of such huge shifts in behaviour. Those retailers able to be flexible and adapt will benefit, leaving those that cannot, or will not, change behind.”
The latest consumer survey follows CACI’s results on worker spend potential, and its new data-driven performance lease model to aid the retail sector which launched earlier this year.
 2,000 people interviewed across the UK on November 3 and 4