UK Black Friday Christmas spending expected to drop by £4.4 billion this year

The latest report from e-commerce research firm Metapack shows that British consumers are expected to spend £4.4 billion less on non-essential items on Christmas and Black Friday this year due to the cost of living crisis . The research was conducted by its operating company Auctane in collaboration with retail consultancy Retail Economics.

Rising food, fuel and energy prices have weighed heavily on consumers' living standards, and inflation has surged to its highest level in a decade. Nearly 30% of consumers said inflation is their biggest concern, 18% believe the economy is unstable , and 12% worry about their savings.

The report also noted that as the retail industry enters its "golden season," four types of shoppers are becoming more mainstream . These people are categorized as: those who are not scared; those who spend lavishly; those who feel secure but still worried; and those who are extremely anxious .

In the UK, 38% of consumers believe they are in a difficult situation, believing that the rising cost of living poses a risk to their daily lives , and are the most likely to cut spending . In addition, 38% of consumers believe that their lives are still secure , but they are somewhat worried, but their financial situation is still good.

In addition, 90% of the companies surveyed expect that this year's peak season will be affected by rising costs. Despite concerns about macroeconomic factors, retailers surveyed generally expect sales to increase this year. Specifically , 48% of large companies expect that this year's order volume will increase compared to last year , and 27% of small retailers said that the increase may exceed 10%.

This seems to be inconsistent with current consumer sentiment, with 58% of shoppers saying they will cut back on spending. And the spending cuts by British consumers are the largest among the eight countries surveyed , with more than 70% of British consumers planning to reduce spending in some way.

In fact, retailers are also considering taking measures to cope with rising operating costs. 35% of retailers said they are considering increasing shipping costs , and 26% said they plan to extend delivery time . In addition, more than 18% of retailers said they plan to increase promotional activities, and 10% of retailers hope to cancel free returns.

In terms of categories, clothing and footwear were hit the hardest, with 26% of consumers planning to cut spending on clothing. In addition, more than 22% of consumers said they wanted to spend less on electronics. However, most retailers remain optimistic, with furniture and flooring retailers expecting the largest increase in orders, while electronics retailers are generally more conservative, but still expect a certain degree of increase in transaction volume this year.

The almost completely opposite attitudes shown by consumers and merchants are enough to prove that the current consumption trend is not clear enough. As a cross-border seller, any decision must be carefully considered.

U.K.

Black Friday

Christmas