As the Christmas season approaches, a new consumer survey reveals that Brits are shifting their spending priorities, with traditional gift categories seeing a downward turn. The survey, undertaken by ShipStation, a leading shipping software from Auctane, shows that Brits are increasingly moving away from traditional seasonal purchases in favour of a Christmas list of gifts with immediate utility and consumables.
Spending Confidence
According to the survey, the amount Brits are planning to spend on Christmas this year varies across generations. While 21% of Brits report having a similar budget to last year, there are notable differences in planned spending among age groups:
- Gen Z and Millennials lead in Christmas budgets, with 85% of Gen Z having over £100 to spend and 55% with more than £500.
- Among Millennials, 87% have more than £100, and an impressive 71% are set to spend over £500.
- Gen X and Boomers have slightly more modest budgets; 82% of Gen X and 77% of Boomers have over £100 to spend, though only 41% and 38%, respectively, plan to spend above £500.
These figures reflect that, despite generational differences, a strong majority within each age group has allocated at least £100 for Christmas shopping, signalling robust spending intentions overall.
Where are Brits NOT buying this year?
Longstanding Christmas staples are seeing reduced interest across all age groups, with Brits overall cutting back on books and media. Millennials lead this shift, with 31% planning to spend less, followed closely by 29% of Gen X and 19% of Boomers. The decline points to the impact of digital content and changing leisure habits, making traditional media purchases less appealing as Christmas gifts. Beauty and personal care items are also losing popularity, with spending plans down 25% overall. Millennials (28%) are the most likely to reduce spending in this category, followed by Gen X (25%) and Boomers (19%). This trend reflects a preference for simpler, more practical gifts that avoid the complexities of personal preference.
Gift cards, a traditionally safe and flexible option, are also experiencing a marked decline and are off our Christmas list, particularly among younger generations. Gen Z leads this shift, with 34% planning to cut back, followed by 29% of Millennials. In contrast, Boomers show less movement away from gift cards, with only 16% planning to reduce spending. This waning interest points to a broader move towards less traditional Christmas gifts.
Where are Brits shopping this year?
This year, a majority of British shoppers (70%) plan to purchase their Christmas shopping on ecommerce marketplaces such as Amazon, while only 28% will support small, independent brands.
Across the generations, Gen Z stands out, with 71% opting for ecommerce marketplaces, 52% for retailer websites, and 32%—the highest among generations—planning to shop via social media, showing its strong appeal to younger buyers. Millennials show similar trends, with 70% favouring ecommerce marketplaces and 39% choosing recommerce. Gen X and Boomers also lean toward ecommerce marketplaces, though Boomers are slightly more supportive of small brands. Gen Z’s preference for social media shopping emphasises an opportunity for brands to leverage digital platforms for younger consumers.
So, what IS on Brits’ shipping lists this year?
Food and beverage is a top spending category for the Christmas list this year, with 83% of both Gen X and Boomers planning to maintain or increase their spending in this area. Millennials follow closely, with 81% keeping or raising their budgets, and 41% of Gen Z intend to spend more. These trends highlight a shift toward practical, consumable gifts over traditional items like books and media.
Clothing and accessories remain popular, with 72% of Millennials and 68% of Gen X planning to spend the same or more, and even 61% of Boomers prioritising fashion. Electronics are also key, with 45% of Gen Z maintaining spending levels and 27% of Millennials increasing their budget. Boomers (12%) and Gen X (11%) show moderate growth in this tech category, emphasising the strong appeal of wearable and tech gifts this season.
The data from our survey paints a clear picture, traditional gifts are losing their charm as consumers prioritise spending on more tangible and consumable gifts. Food, fashion, electronics, and self-care products are now at the forefront of gifting preferences, while traditional categories like books, home decor, and gift cards are seeing a decline.
Retailers should take this opportunity to understand their core demographic, recognising that they will continue to evolve and this is an ongoing exercise. By adapting quickly to consumer preferences, retailers can better position themselves for success in the ever-changing market.
– Matthew Trattles, VP of SMB, ShipStation
