- UK shoppers prioritize value over luxury this holiday season
- Black Friday and Cyber Monday set to drive record-breaking online sales
- Mobile and AI shape 2024 holiday shopping trends
As the 2024 Black Friday and holiday season approaches, UK consumers are expected to make history with higher than ever online spending.
A new UK holiday spending forecast from Adobe has claimed shoppers are set to spend a staggering £25.9 billion online from November through December, surpassing the previous peak of £25.6 billion set in 2020.
This year’s total represents a 6.1% increase over 2023, despite economic challenges as consumers remain focused on maximizing value and stretching their holiday budgets, particularly during key discount events like Black Friday and Cyber Monday.
Black Friday and Cyber Monday 2024 are set to continue to dominate online shopping this year, with Adobe projecting a 9% increase in Black Friday sales, with an expected £1.13 billion in spending, while Cyber Monday will see a 6.7% rise, reaching £940 million.
The survey claims UK consumers are maintaining cautious spending habits due to the current cost-of-living crisis, with shoppers deliberate in seeking discounts and deals, preferring to shop during the peak discount days of Black Friday and Cyber Monday.
This year, spending on the most expensive quartile of goods has dropped by 21% compared to 2021, though there is a slight increase during the holiday season.
Consumers are also making cost-saving decisions regarding delivery options with expedited shipping expected to drop by 23.8% as more shoppers opt for cheaper, often free, standard delivery (up 3.9% year-over-year) or use click-and-collect services (up 12.3%).
Buy Now, Pay Later (BNPL) services are also on the rise. Adobe forecasts a record £3.4 billion in spending through BNPL during the 2024 holiday season, an 8.3% increase compared to last year. Cyber Monday is set to become the biggest single day for BNPL usage, with £152.3 million expected to be spent. In addition, this holiday will see generative AI influencing users’ shopping habits, with traffic to retail sites referred by AI sources seeing a tenfold increase as shoppers turned to AI for gift ideas and price comparisons.
Mobile shopping will also hit new highs, with Adobe predicting £14.6 billion spent via mobile devices, up 8.4% from 2023. Mobile transactions are forecast to account for 56.3% of all online spending, underscoring the shift towards smartphone shopping.
Holiday shoppers can also expect steeper discounts across key categories compared to 2023. Adobe projects discounts ranging from 6% to 24%, with computers, televisions, apparel, and toys among the top categories for price reductions.
“While UK shoppers are spending more freely this holiday season, it’s clear that consumers are still observing the more cautious, value and price-conscious habits that emerged during periods of high costs-of-living over the past 18 months,” says Vivek Pandya, lead analyst, Adobe Digital Insights at Adobe.
“Deal-hungry shoppers will again concentrate their spending over the Black Friday and Cyber Monday weekend as they take advantage of the deep discounts on offer across all retail categories to stretch their budgets as far as possible,” Pandya added.