Consumers set to spend big this Christmas as online rises

73% of holiday consumers do not plan to reduce spend on 2020 shopping (compared to 2019), according to research from Rakuten Advertising.

The company surveyed 8,673 adults across the globe and found that despite 40+% citing a decrease in household income due to Covid-19, 87% of people will still be shopping for holidays such as Christmas and 57% plan to purchase during key shopping peaks like Black Friday.

Since the coronavirus outbreak, 49% of UK consumers have cut back on their monthly spending - a far more cautious position to contemporaries in Germany (28%) and France (33%) – and moved investment away from conventionally “fun” purchases to essentials.

Research shows that Brits reduced their spending on travel (81%), restaurant and delivery (60%) and more luxurious items such as jewellery (57%) and apparel (59%). But splashed out more on the likes of groceries (54%) and digital entertainment (35%).

They also demonstrated a shift to purchasing more online, with many buying stuff via e-commerce for the first time. Approximately 65% of UK consumers have shopped more online since the outbreak of Covid-19, a change of behaviour that looks set to stick far into the second half of 2020.

Should there be a second wave of restrictions, many shoppers (51%) have said they do not plan to decrease their holiday spend. This determination to continue as normal and not let Covid-19 impact Christmas is reflected globally with 54% of consumers saying there will be no change to their spend for key shopping dates in the first half of 2021 either, including Chinese New Year and Valentine’s Day.

At the same time, however, people are prioritising who they purchase for and sales and discounts will be the most influential factor (47%) driving holiday purchases in the UK this year, with 32% of consumers planning to change when they shop to save more money.