Brands and retailers could be in for a tough festive season after Intuit QuickBooks reveal the results of their Holiday shopping survey showing low consumer confidence and bigger demand for experiences. 9,700 adults and 3,000 small businesses in the United States, Canada, and the UK were surveyed.
Inflation
Due to rising costs consumers are planning to buy less gifts than usual this year. 66% of USA respondents, 67% of Canadian respondents and a staggering 73% of UK respondents said they will be purchasing fewer gifts for family and friends this Christmas.
Eight out of ten consumers will cut spending if the economy continues to get worse, showing a lack of confidence in the current economic state. Fortunately for ecommerce companies this is pushing consumers to spend more online, over seven out of ten consumers surveyed are shopping online more often to find the best deals. So be sure to get those deals on display.
Experiences
There seems to be a growing desire for experience gifts, especially in the USA and Canada. Consumers are still enjoying their returned freedoms and feel that experiences like entertainment and dining out allow them to do more of what they missed during the pandemic.
The impact of a tough festive season on small businesses
The sad reality is that small businesses will be hit hardest, as they continue to rely heavily on festive spending and getting consumers to spend this year is even more important than last. 79% of USA respondents, 72% of Canadian respondents and 82% of UK respondents say their financial health is more important in the upcoming festive season. These results show that although all countries are facing challenges the UK are certainly feeling the pressure of the recent economic turmoil.
Small businesses are urged to keep on top of trends and offer deals and discounts to entice more spenders.
