UK Retail Spending Trends to Shape Christmas 2024… and beyond
As the busiest shopping season of the year unfolds, Barclays’ latest UK Consumer Spending Report sheds light on cautious spending patterns in November, offering a glimpse into the trends that will define the critical Christmas trading period. These findings offer valuable short-term insights for retailers navigating the season while also reflecting longer-term shifts in consumer habits, often driven by changing consumer shopping preferences .
Overall, in November retail spending dropped 2.0%, the steepest decline since June, as consumers delayed purchases and were cautious amid economic pressures. Despite this significant drop, some categories defied the trend: health & beauty products gained traction, with wellness-focused gifts set to be popular presents under the tree this year, reinforcing the growing prioritisation of self-care and health-conscious lifestyles, particularly among younger consumers.
Cold weather contributed to a decline in in-store spending as shoppers opted to stay home, reinforcing the critical importance of strong online channels. But, to thrive whatever the weather, seamless omnichannel experiences that allow customers to engage effortlessly—whether online, or in-store are critical.
On a brighter note, hospitality and leisure spending rose 4.7%, demonstrating resilience as consumers prioritised spending on experiences. Cinema spending surged by 22.8%, fuelled by blockbuster releases Wicked and Gladiator II. Pop culture moments, like the release of Wicked, are increasingly powerful in driving consumer spending. Brands that align with these moments can capitalise on their cultural relevance. Standout examples in November include Wicked partnerships from M&S, Crocs, and Liberty, showcasing how agility and timely campaigns resonate with consumer interests.
While Christmas will soon be behind us, the trends shaping this shopping season are here to stay, so once the rush of Christmas trading is over, here are 4 things we think retailers should reflect on:
Economic pressures have led to cautious spending, but the growing appeal of wellness-focused products, particularly among younger consumers, highlights an enduring shift toward self-care and health-conscious lifestyles.
How is your organisation tapping into generational trends, through its proposition and building long-term relevance?
Cold weather caused a decline in in-store spending, emphasising the immediate and long-term need for seamless omnichannel experiences that enable customers to shop effortlessly across digital and physical touchpoints.
How can you enhance your brand's online presence and integrate it with other channels for a seamless omnichannel experience?
Experience-driven spending demonstrates consumers’ continued prioritisation of meaningful, shared experiences over material goods, a trend shaping the future of discretionary spending.
How can you tap into the growing experience economy to enhance customer engagement and loyalty?
Brands that quickly align with cultural moments, like Wicked collaborations from M&S, Crocs, and Liberty, show how agility and cultural relevance can drive both immediate engagement and long-term loyalty in an evolving retail landscape.
Do you have the capability and culture in place to identify and capitalise on cultural moments that resonate with your audience?
Want to future-proof your retail strategy and thrive in an evolving landscape? Get in touch to explore how we can help.