Intersperience survey explains recent surge in retail sales
· 1 in 3 shoppers exceeded Christmas budgets
· Older generation keener than younger people on internet shopping
· Half of online buyers experienced problems
One in three consumers confessed to blowing their Christmas shopping budgets in 2009, dashing their good intentions for a frugal celebration, according to a survey by international consumer research specialist Intersperience.
The survey, which analysed the shopping habits and attitudes of UK consumers, found that 33% of people who had intended to stick to a spending limit for Christmas gifts failed to do so. Food and drink proved a major indulgence, with 27% exceeding their pre-set budget for festive fare.
Intersperience, an expert in consumer behaviour, questioned shoppers on their spending intentions before Christmas and afterwards to discover whether they had stuck to their plans. The survey presents fresh insight into the dynamics of the retail sector following a string of positive Christmas trading statements from major store groups.
Intersperience Chief Executive Paul Hudson said: “Despite buoyant Christmas trading statements from many retailers, there is still a good deal of uncertainty over the mood of Britain’s shoppers. Our survey delivers much-needed insight and really gets under the skin of customers. We analysed what drives them to make particular purchases and where and how they shop.”
The survey showed that fewer consumers spent money online than they had anticipated over Christmas, influenced by strong concerns over stock shortages and delivery delays. In fact, half of respondents reported delivery or stock availability problems with internet orders.
The survey also found that the older age group were keenest on online shopping and reported higher use, higher spend, greater motivation and fewer problems with shopping online this Christmas than younger people.
Overall, shoppers were evenly split on whether they prefer online or high street shopping, with 18 to 24 years olds showing a preference for in-store browsing and purchasing while the older generation were more likely to use the internet, particularly for goods such as books and DVDs.
Convenience, price and speed were cited as the main attractions of online shopping. Word-of-mouth rather than consumer review and price comparison sites remains the strongest influence on spending decisions.
The survey found that internet shopping is still regarded as cheaper than the high street – but the high street offered better value than people had expected.
Paul Hudson said: “For a long time online prices were regarded as considerably lower, providing a key driver for internet shopping. However, we are seeing signs that the price gap may be closing.”