UK consumers “cautious but confident” ahead of Golden Quarter

When it comes to Golden Quarter budgets, consumers are "cautious but confident" according to new research from e-commerce provider Visualsoft, with average Christmas and Black Friday spend this year to be £567.97.

In June 2024, Visualsoft commissioned a One Poll Survey of 2,000 UK consumers aged 18-65, from across all regions, to delve into British attitudes to online shopping.

The resulting report, entitled ‘Make Golden Quarter 2024 shine: Unwrapping UK shopper gifting trends for dazzling engagement’, also revealed:

• 13% of consumers plan to increase spend year-on-year.
• 21% of consumers prefer to support independent retailers.
• Only 26% plan one month or more ahead.
• Younger generations are more optimistic, with a third of 18-24 year olds set to spend more than in 2023.

While 13% of consumers plan to spend more than in previous years, a large majority of shoppers (57%) are aiming to spend around the same as in 2023, which could see some retailers’ revenues remaining flat.

One in three (35%) of those surveyed plan to spend between £101 and £500, with a sizeable fifth (19%) looking to invest £501- £1,000, hence the average budget figure of £567.97.

Londoners and Scots are the most generous, with 14% and 13% respectively saying they will spend over £1,000, compared to 5% in the East Midlands and 6% in the south west of England.

The survey also reveals that not everyone is planning their spending early. With a quarter (27%) saying that they’re still unsure, there’s "an opportunity for retailers to leverage last minute trends" and nudge audiences to increase basket size with smart marketing campaigns.

Ashley Wright, CCO at Visualsoft, said: "For many brands, the Golden Quarter – starring Black Friday, Cyber Monday and Christmas - represents the pinnacle of the annual sales calendar.

"It’s crucial for retailers to ramp up online engagement and deck out marketing campaigns to engage, capture and convert shoppers’ desire to gift, indulge or bargain hunt."

Just a quarter (26%) of shoppers say they plan their Christmas shopping more than one month ahead, providing brands with multiple opportunities to influence purchasing right up to key moments.

The report also reveals that retailers targeting younger consumers could fare much better, with a third (33%) of 18-24 year-olds set to spend more, compared to just 4% of those aged 55-64.

"High target items" are fashion, skincare/cosmetics and gadgets, which lead the way across all age groups - with 18-24 year olds the most likely (33%) to splash out on ‘luxury items’. More experience-led offers are also appealing to younger demographics, with 17% of 18-24-year-olds interested in virtual experiences, and 13% interested in subscription boxes.

Just under half of shoppers (47%) treat small online brands and big box retailers equally. But while 16% prioritise major players, there is a growing trend towards smaller independent businesses - with one in five (21%) preferring to support them.

Sustainability and purchasing with a purpose are also becoming increasingly important - most evident among 18-24-year-olds (18%). That suggests the Golden Quarter in 2024 may offer a great opportunity for independent retailers to increase their share of the market.

Wright added: "There are signs that spending will be up for some consumers, despite the cost-of-living crisis. Retailers have a huge opportunity to influence spontaneous and undecided buyers with targeted messaging and curated offers.

"However, planning ahead with multiple touch points throughout the next few months, will be crucial for maximising sales this year."