With Christmas just around the corner, consumers will be in the midst of a last minute purchasing frenzy aiming to acquire the perfect gift for their friends and family members. However, if you have found yourself in the position of urgently needing to hit the shops, you may wish to consider a cash gift instead.
According to research jointly conducted by analytics firms SAS and Conlumino, money is the gift most of us hope to find under the Christmas tree this year.
This trend has been registered across all age groups, with 63.7 per cent of the key 18 – 34 category asking Santa Claus for money and 53.2 per cent for gift cards.
Also popular in this age group were iPads, laptops and alternative tablet computers, echoing similar studies which predicted electronics to dominate the Christmas season this year. However, cosmetics retailers may take heart from the fact that aftershaves and perfumes remained popular choices with the majority of respondents.
While retailers may be slightly disheartened by consumers gifting cash rather than spending in their stores in the lead up to Christmas, SAS UK and Ireland retail marketing manager Cindy Etsell points out that this trend has provided a great opportunity to prolong the festive spending period into the New Year.
She says; “Retailers need to provide personalised offers through multiple channels such as social media, email and direct mail vouchers.
“Analytics can shed light on what the cash is likely to be spent on – and show retailers where to develop multi-channel promotions that will capitalise on the extra money available.”
This advice could prove especially valuable for small retail businesses, which have the opportunity to take advantage of a boost to consumer disposable income whilst simultaneously reaping the benefits of festive events taking place in town and city centres throughout the country. For example, the popularity of temporary German markets and festive staples such as outdoor ice rinks has attracted high volumes of footfall which tend to translate into strong passing trade.
The report, entitled Christmas 2013: Market Prospects, Trends and Winning Strategies, forecast that consumer spending will increase by 2.9 per cent when compared to last year, totalling £18.5 billion in all. Given that December inflation generally stands at 2.7 per cent, this will be heartening news to retailers concerned about the still shaky consumer confidence afflicting the retail industry.
Food retailers are expected to be particular winners during this festive period, with SAS and Conlumio predicting an increased spend of 4.2 per cent on food items from last Christmas, giving retailers such as Waitrose and Marks & Spencer, along with discount brands Aldi and Lidl, a £5.3 billion boost. At the other end of the scale, toy and game retailers may find themselves losing out thanks to tough competition from the electronics sector.
Are you planning on giving cash gifts to friends and family this year, or do you still intend to hit the shops tomorrow?
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