4 minute read
Dan Edelman, vice president & UK general manager, merchant services at American Express
The shopping trends shaping retail this festive season
Dan Edelman, Vice President & UK General Manager, Merchant Services at American Express, discusses the opportunity for retailers that tune into specific needs of Christmas shoppers
Christmas is fast approaching and both consumers and businesses around the UK are already thinking about what’s needed to make the festive season a success.
But despite the current challenging landscape, what’s clear is that Christmas remains an important event for the majority of shoppers - they are just exploring different approaches in the run-up to the big day.
Our latest research of 2,000 UK consumers* found that shoppers are taking steps to manage their festive spending, with six in 10 (61%) saying they will be budgeting in some way.
Yet, this isn’t stopping people wanting Christmas to be as normal as possible, as nearly half (48%) plan to spend the same this year as they have done previously. A separate survey we undertook found that, as of the end of September, a staggering 16.2 million British consumers had already started their Christmas shopping - something which may come as a surprise to merchants.
With Christmas just a matter of weeks away, our research identified evolving shopping behaviours that give merchants key pointers to help capture customer spend.
Year-round shopping
To minimise the financial brunt of Christmas shopping in one go, shoppers are being savvy with their finances, with more than one approach being taken. We found that over four in 10 (42%) consumers admitted to saving up throughout the year to ensure they have enough financial firepower for the festive season, with a similar proportion (38%) saying they stagger gift shopping across the year to try and minimise the financial hit in December.
A changing Christmas wish list
In addition to spreading out their Christmas spending, the types of gifts that shoppers purchase may look slightly different this year.
Due to the current economic climate, gifting priorities have understandably changed for some people. For example, approximately one in five (21%) shoppers say they will be gifting ‘essential items’ this year, with a quarter (24%) saying they will gift money.
Sustainable gifting remains important for some consumers, as they consider the environmental impact of their purchasing decisions and steer towards buying ‘greener gifts’.
However, our research found just one in seven shoppers (15%) are planning on purchasing sustainable gifts for their nearest and dearest. Gift cards are another popular choice this year, with a fifth (21%) of consumers saying they’ll be opting for these.
A customer-first Christmas
It’s going to be a very competitive environment this year, but there’s opportunity for retailers who tune into the specific needs of Christmas shoppers to build an advantage over the competition.
Our research found four in 10 (42%) consumers are more likely to shop with a retailer that offers a personalised service, and three-quarters agree that great customer service is important to them when shopping.
Checkout is another part of the customer journey that can help make or break the shopping experience. With three-fifths of consumers citing convenience as a number one priority when shopping, the payments experience is a good place to start if merchants want to meet these demands. A majority (60%) of shoppers said they would abandon a payment if they couldn’t pay with their preferred payment method, while a fifth (22%) think they shouldn’t have to enter payment details when making a purchase online. It’s clear that now more than ever, customers will be looking for retailers offering convenient and rewarding shopping experiences - whether instore or online - to make their Christmas shopping as hassle-free as possible.
By accepting a wide range of payment types at checkout, such as American Express, merchants can engage and draw in new customers by giving them something extra this Christmas. Our Cardmembers earn Membership Rewards points on every pound they spend, and we partner with merchants large and small with a range of Amex Offers that help to drive additional spend from this loyal customer base - helping make Christmas a success for consumers and businesses alike.
It’s clear that there remains a strong desire among consumers for their Christmas to be successful, and merchants have an important role to play in making that happen. Responding to changing shopper behaviours and preferences is integral to winning share of wallets this festive season, and those adding greater value will be the ones to drive loyalty over the long-term.
