A new survey suggests over half of UK shoppers plan to wait for sales to purchase clothing and accessories during the holiday season and almost half (45%) will buy secondhand gifts to save money.

The EY survey, which polled 1,000 UK consumers on their views and attitudes towards the upcoming holiday sales season suggests 53% of UK consumers are worried about how to afford the gifts, clothing, food and drink required for Christmas in 2024.

Almost half of consumers (46%) started festive shopping before November to help spread the cost and the majority of those surveyed (73%) remain sceptical about the real value of festive season discounts. 

However, half of UK consumers plan to wait for sales on clothing, accessories, and tech and electronics before making purchases in those areas. 

The survey shows that 64% of UK consumers enjoy sales events like Black Friday and Boxing Day, however an equal percentage will only buy on sale to stay within budget. Almost three-quarters (73%) are sceptical about the real value of festive season discounts with over half of consumers (55%) willing to pay full price for important gifts rather than wait for sales.

Sustainability also remains high on the agenda and has the dual purpose of helping shoppers to save money. Almost half (45%) plan to buy more secondhand gifts, rising to 60% of Gen Z, and almost half hope to buy local products from sustainable brands.

EY UK&I retail lead Silvia Rindone said: “Consumers are clearly adapting to the current economic climate by starting their holiday shopping earlier to pick off early bargains, and being more strategic with their spending. While the cost-of-living crisis remains a significant concern, it’s encouraging that shoppers are finding ways to manage their budgets and still prioritise meaningful gifts for their loved ones.” 

She continued: “Retailers have an important role to play in supporting consumers through this period by offering flexible payment options and must clearly communicate their value proposition to shoppers, attracting price-sensitive customers with great prices, and clearly articulate of the value for the premium parts of their range.”

When it comes to sales, Rindone advises retailers to carefully consider the timing and depth of promotions, and whether these are truly the best options for their customers.

She added: “To succeed, retailers must have a presence everywhere — standout stores or pop-ups, and a strong proposition across all digital channels, including social media, to drive both online conversions and in-store traffic. This broad approach adds complexity, as retailers must also tailor their messages to meet individual consumer needs on the channels that matter most to them.” 

The survey highlights that social shopping, which is the selling and buying of products directly on social media, is becoming increasingly important for UK shoppers with a fifth (20%) of consumers expecting to purchase from shoppable social content. This rises to a third (33%) of Gen Z, who use social media for inspiration and rely on influencer and peer reviews. 

For online shopping shorter delivery propositions are also important, with 22% preferring same-day delivery and 37% next-day delivery and less than a third (30%) prefer to use the retailer’s default delivery day. Plus, over half (53%) of consumers will find another item to buy to meet the minimum purchase amount for free shipping.

Rindone described the next few months as a “critical time” for many UK retailers because their labour costs will increase next year. 

For this reason, she noted they will need to make sure they drive margin in this Golden Quarter so that investments can be made in their proposition: “Shoppers are willing to spend if the price is right, and the proposition is strong, so continuing to run as efficiently as possible while steadily improving the experience for customers is key. Much like the last few years, the market is getting tougher, and only those able to continually evolve will thrive.”

The survey suggests younger consumers (18 to 27 year-olds) will spend more this festive season, with over a third of Gen-Z consumers planning to increase their spending, particularly on food and beverages.

Last week S&P Global Ratings suggested US holiday sales growth would slow to about 3% in 2024 from 4.7% last year and suggested boosting value will be key to US retailer success.

 By Just Style