More consumers shopping ‘mostly’ in-store this festive season – CACI data

New research from data specialist CACI shows a large number of UK consumers said they’d be shopping in-store as the pre-Christmas rush got under way in earnest with those shopping physically making up the largest group overall.

It said 43% of consumers will mostly shop in-store for their Christmas shopping this year. This has risen 7ppts since 2022. Only 26% of those it spoke to said they’ll complete most of their shopping online, leaving three-quarters of consumers who’ll do at least half of their shopping in-store.

Gen Z includes the highest proportion of consumers looking to shop mostly in-store (+7ppts vs overall), whereas Gen X is the segment that makes up the highest proportion of people saying they’ll mostly shop online (perhaps reflecting how busy they are at this time of year).

Physical shopping has seen a comeback that few expected since the pandemic and it’s clear that good experiences in physical stores are important to shoppers. The company said that 36% of people are more likely to make a purchase if they have a positive in-store experience, and 19% are influenced to make a purchase from an attractive store.

As for the timing of major shopping sprees, younger consumers are more likely to plump for early November Christmas shopping with Gen Z up 9ppts vs overall for early November and Millennials up 4ppts vs overall. But Baby Boomers are more likely to continue to shop in mid-December (up 3ppts vs overall for the middle of this month).

And while this is the big season for fashion retailers hoping to sell as much as possible, consumers (especially in more affluent groups) are more focused elsewhere, particularly on buying food and drink to eat at home as well as on socialising. Of course that’s also likely to mean they’ll buy new clothes and beauty products, so it’s not all bad news for fashion.

More good news comes from the fact that Millennials are more likely to prioritise spending on gifting, at 6ppts greater than the overall population.

In total, 17% of UK consumers say they’ll be spending more overall on gifts this year, but that number nearly doubles among Gen Z (32%).

Importantly too, being environmentally-friendly is increasingly on the radar for Christmas consumption this year, with all metrics increasing vs 2023.

Some 44% of people will use less wrapping paper to limit their impact on the environment, up 20% from 2023. And 25% will be using decorations they make at home, rather than shop-bought (up 13ppts from 2023). This is higher for younger groups, particularly those aged 25-34 (40%). Still, three-quarters of the population will be using decorations bought in-store. 

Meanwhile 45% will aim to buy locally produced goods where possible this Christmas, up 15ppts vs 2023. This is highest among 25-44 year-olds (over 50%) and more affluent groups (54% of the Luxury Lifestyles demographic).

Some 42% also say a brand’s environmental policies and practices will influence the likelihood of purchasing from them this year, compared to 36% in 2023. This is higher among 16-34 year-olds, with the 45+ group more likely than average to be uninfluenced by eco concerns. 

Hannah Smith, consumer intelligence lead at CACI, said: “Christmas always brings out feelings of generosity and increasing propensity to spend, but the attitudes of consumers towards it are always shifting. The suggestion is that spending power will hold firm, with 48% of people agreeing that ‘the increased cost of living’ will not impact intended Christmas social plans, and nearly one-in-five (17%) saying that they actually intend to spend more overall on gifts this year. 

“The behavioural shift for Christmas 2024 follows the growing trend of previous years: people are leaning towards more in-store shopping and more environmentally-conscious habits. We’ve said it before, but it’s worth reiterating, that brands that can create quality physical retail experiences while championing sustainability will win the festive period.”