webloyalty christmas retail research 2014
TRANSCRIPT
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Introduction
Looking ahead ... Christmas 2014
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Webloyalty 2nd Floor, 2 Harewood Place, London W1S 1BX +44 (0)20 7290 1650 [email protected] www.webloyalty.ie
Conlumino 7 Carmelite Street, London EC4Y 0BS +44 (0)20 7936 6654 [email protected] www.conlumino.com
This research has been commissioned by Webloyalty to provide retailers with insight into the current trading environment as well as some more specific insight around Christmas trading. About Webloyalty Webloyalty is a leading reward programme provider working with major online retailers to help them build stronger, more profitable relationships with their customers. Through our membership programmes we help our online retail partners’ customers save hundreds of euros a year while providing the partner with an additional revenue stream. As well as incentivising customers to make repeat purchases at the partner’s site, members can also earn cashback and get great deals on everything from fashion to electronics to travel at many top online stores. Webloyalty was established in the UK in 2007 and has since expanded into France, Spain, Ireland, Brazil, the Netherlands and Turkey. About Conlumino Conlumino is a retail research agency and consulting firm. Our work focuses on all aspects of retailing and consumer behaviour, which we deliver through bespoke reports, projects and presentations. We work with many of the world’s leading retailers, property firms and those in the financial sector to help them maximize success through developing a thorough understanding of the sector and its likely future performance.
Foreword
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Summary
A sparkly Christmas While Christmas won’t be as lucrative as it was during the heady days before the economic downturn, we expect spending to sparkle this festive season with total growth of 3.5%. All areas will benefit with food spending expected to rise by 3.6% and gift spending up by 3.5%.
We’re dreaming of … a traditional Christmas Spending to one side, most of us will celebrate Christmas Day in a fairly traditional way with 73% having a festive meal with family, 72% watching the television, and 63% opening presents. Some 2.3% will be on holiday abroad while a dedicated 3.9% will be working.
Getting out the games 12% will be playing board games on Christmas Day. Our favourites include: Charades (9.3%), Monopoly (8.3%), Trivial Pursuit (6.9%) and Scrabble (6.9%). Season’s greetings While many things have gone digital, 66% of us plan to send only printed Christmas cards, compared to just 3% who say they will only send e-cards. The average consumer is planning to send 28 cards this Christmas.
Time commitment The average consumer will spend around 12 hours on Christmas-related shopping activities, with a committed 7.1% spending more than 48 hours on shopping. The total budget will be an average of €578 with 13.5% budgeting €1,000 or more.
The festive table Almost half of us plan to spend €9.99 or less per head on the Christmas meal and most of us (67%) will do our shopping in physical stores. 81% will eat roast potatoes for Christmas dinner, 65% roast turkey, and 65% stuffing. 5% will have steak.
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
2013 spending
In 2013 we spent €1.49bn on Christmas
Breakdown of 2013 Christmas spending
Total Christmas spending
€1.49bn
Gifts
€811.5m
Seasonal non-food
€173.1m
Food and drink
€509.7m
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
2014 spending
This year we will spend just over €1.55bn on Christmas, up 3.5%
Breakdown of 2014 Christmas spending
Total Christmas spending
€1.55bn
Gifts
€839.9m
Seasonal non-food
€178.4m
Food and drink
€528.0m
Gifts
Up 3.5%
Seasonal non-food
Up 3.1%
Food and drink
Up 3.6%
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Christmas Day
What will you be doing on Christmas Day this year? All figures are percentages
Having lunch with the family, watching TV and opening presents are the most popular things to do on Christmas Day
72.9 72.1 62.8
55.1
37.8 33.2 29.2
20.5 18.3 15.4 11.8 10.1 6.9 3.9 3.9 3.4 2.3
Have Christmas lunch with my family
Watch television
Open presents
Prepare and cook
Christmas dinner
Go to midnight mass or another church service
Watch films Go out for a walk
Spend time with my friends
Listen to the radio
Have a lie-in Play board games
Have Christmas lunch with my inlaws
Play computer
games
Work Wrap presents that
I have put off wrapping
before
Catch up on the
housework
Be abroad
on holiday
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
The games we will play
5.4% Cards
6.9% Trivial Pursuit
8.3% Monopoly
6.9% Scrabble
9.3% Charades
2.9% Operation
2.7% Guess Who?
What games, if any, will you play on Christmas Day? All figures are percentages
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Essential purchases
What are your essential Christmas purchases? All figures are percentages
Almost 8 out of 10 say that presents are an essential purchase; while over half say cards are still essential
78.3% Presents
60.3% Cards
47.2% Chocolates
32.3% Biscuits
26.5% Fruit
28.3% Nuts
27.9% Alcohol
20.3% Decorations
11.2% Champagne
3.3% Jumpers
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Spending
How much will you spend on Christmas gifts? All figures are percentages
Those who buy gifts will spend an average of €326 on them
14.4% will spend
under €100
16.9% will spend
€100-€149.99
17.6% will spend
€150-€199.99
14.1% will spend
€200-€299.99
7.4% will spend
€300-€399.99
7.7% will spend
€400-499.99
16.8% will spend
€500+
5.1% say that they will spend nothing on Christmas gifts this year
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Change in spending
How does your planned spending on Christmas gifts compare to last year? All figures are percentages
The majority plan to spend more or the same as they did last year
Plan to spend more than last year
Plan to spend less than last year
Did not buy last year and will not buy this year
Plan to spend about the same as last year
8.8% 24.7% 3.3% 63.2%
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
How we will shop
How will you shop for Christmas this year? All figures are percentages
The majority of people will use both online and stores
In store only
16.4%
Both online and in store
68.0%
Online only, while at work
4.5%
w
Online only, while at home
8.4%
h
Online only, at work and home
2.7%
h+w
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Sending cards
Are you planning to send printed or online Christmas cards this year? All figures are percentages
The vast majority are still planning on sending printed cards
Online only
3.3%
Printed only
65.5%
Online and printed
16.0%
Don’t plan to send any
15.2%
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Sending cards
How many cards do you plan to send this Christmas? All figures are percentages
On average we will send 28 Christmas cards each
1-10 14.6%
11-20 25.0%
21-30 28.4%
31-40 11.4%
41-50 7.6%
51-60 5.9%
61-70 1.4%
71-80 2.5%
81-90 1.3%
91+ 1.9%
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Spending on the meal
How much do you typically spend on your Christmas meal per head? All figures are percentages
Over half will spend €10 or more per head on the Christmas meal
7.9% will spend
under €4.99
27.4% will spend €5 -€9.99
28.8% will spend €10-€14.99
13.2% will spend €15-€19.99
10.2% will spend €20-€24.99
3.3% will spend €25-€29.99
9.2% will spend
€30+
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Online food shopping
Are you doing your food shopping online this Christmas? All figures are percentages
Most consumers prefer to do their food shopping in store
Yes
9.1%
No
70.1%
Combination of online and in store
10.2%
Not yet decided
10.6%
?
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Why we buy food online
Saving time and money are the main reasons for buying online
71.8
48.2 47.8 38.7
27.3 18.7
It saves time It works out cheaper It’s more convenient to have my food shopping delivered to
my door
I dislike shopping in store during the Christmas period
I can buy products otherwise difficult to buy in store
I can guarantee that I will get the items I want
Why do you buy food online? All figures are percentages
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Where we’ll shop
Which of the following retailers are you planning to use for your Christmas food and grocery shopping this year? All figures are percentages
Over a quarter plan to use Tesco for their Christmas grocery shop
25.4 23.1 21.9
19.2
14.7
8.9 7.6
Tesco Dunnes SuperValu Marks & Spencer Others Aldi Lidl
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
What we’ll eat
Which foods do you usually eat as part of your Christmas meal? All figures are percentages
Roast potatoes are a favourite with over 8 out of 10 eating them
85.4
72.1
62.1
50.4 44.3 44.3 43.6
38.9 35.9 29.3
24.1
15.4 13.2 11.2 7.9 7.2 5.0 3.4
Roast potatoes
Roast turkey
Stuffing Brussel sprouts
Mince pies Christmas pudding
Parsnips Cranberry sauce
Christmas cake
Bread sauce
Roast ham Brandy cream
Roast chicken
Smoked salmon
Spiced beef Roast goose
Steak Nut roast
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Time spent shopping
How many hours will you spend in total shopping for both Christmas food and gifts? All figures are percentages
On average consumers will spend almost 12 hours Christmas shopping
5.8
17.5 18.7
10.5 12.2
6.2 4.4 4.4
2.9 2.1 4.8
7.1
< 1 hour 2-4 hours 4-6 hours 6-8 hours 8-10 hours 10-12 hours 12-14 hours 14-16 hours 16-18 hours 18-24 hours 24-48 hours > 48 hours
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Total budget
What is your total budget for Christmas? All figures are percentages
The average consumer will spend €578 on all aspects of Christmas
11.7% will spend
under €100
11.1% will spend
€100-€199.99
21.0% will spend
€200-299.99
9.5% will spend
€300-€399.99
12.1% will spend
€400-€499.99
21.1% will spend
€500-€999.99
13.5% will spend €1,000+
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Christmas
© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
The seasonal sales
When do you intend to take advantage of the seasonal sales? All figures are percentages
Just over 40% will not spend in the seasonal sales
40.3
12.3
3.7 3.0
8.1
14.5
4.3
19.7
8.9
I do not expect to spend anything during
the sales
Before Christmas Eve Christmas Eve Online on Christmas Day
Boxing Day 27th December – 31st December
New Year’s day 2nd January – 10th January
After the 10th January
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Sales shopping
How will you shop during the seasonal sales? All figures are percentages
Almost a fifth will only shop online during the sales
Online only
18.7%
Mainly online
50.3%
Both online and in store
31.0%
Which device or devices will you use to make your purchases online? %
Desktop PC 50.7
Laptop 47.2
Tablet 22.1
Mobile 14.0
Internet enabled TV 1.8
Other device 2.3
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7920 1650
Looking ahead ... Christmas 2014
Present buying in the sales
Will you hold off until the seasonal sales to buy Christmas presents? All figures are percentages
18% will buy at least some presents during the sales period
Yes
3.9%
No
82.0%
Will buy some, but not all presents in the sale
14.1%
Methodology
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© 2014 Webloyalty & Conlumino [email protected] | +44 (0)20 7290 1650
Looking ahead ... Christmas 2014
Methodology and sources
• A combination of consumer research, secondary research and market forecasting was used to compile this report.
• Consumer research in this report is based on a survey conducted with an nationally representative poll of Irish consumers. Over 1,500 consumers were interviewed during October 2014 and questioned about their views on Christmas and their likely shopping behaviour for this event.
• All numbers relating to expenditure and forecast expenditure on Christmas products are taken from Conlumino’s own retail model. This is updated on an ongoing basis with inputs from official sources, retailers’ results and trading updates, other secondary sources and industry surveys, Conlumino’s ongoing programme of research into consumer spending and habits, and underlying economic drivers and trends. Conlumino analysts both model and interpret this information to provide guidance on the likely future direction of retail expenditure at an overall, sector and category level.
• Unless otherwise stated, all sources of information are derived from Conlumino’s own research and should be referenced to Webloyalty/Conlumino.
Conlumino
+44 (0)20 7936 6654 [email protected]
7 Carmelite Street, London EC4Y 0BS
Webloyalty
+44 (0)20 7290 1650 [email protected]
2nd Floor, 2 Harewood Place, London W1S 1BX