Online spend set to exceed last year's Christmas sales by 1.1 billion pounds

The festive season is fast approaching, and new data from leading consumer insights providers Experian and Reward suggests the retail sector is in for a lucrative end-of-year period. According to their analysis, British consumers are poised to splurge a staggering 28 billion pounds online during the pivotal 'Golden Quarter' - that's 1.1 billion pounds more than last year's e-commerce sales.

The insights, based on transaction data from over 4 million UK cardholders across more than 4000 retail brands, paint a picture of a consumer base that is increasingly comfortable with online shopping, even during the traditionally high-street-focused Christmas season. Year-to-date figures show online spending has risen by 4 percent compared to the same period in 2023, while in-store purchases have dipped by 2 percent.

"For many businesses, the Christmas period is understandably the most important time of year," said Colin Grieves, Managing Director Marketing Services at Experian UK&I. "Shopper habits continue to evolve, and it's key for retailers to understand and anticipate how people are prioritising their spending."

Beyond the overall shift to e-commerce, the data highlights several other emerging trends that fashion brands would be wise to monitor. Perhaps most notably, the analysis revealed a 21 percent year-on-year increase in transactions at online second-hand marketplaces, with older consumers leading the charge. Shoppers aged 45-54 and 55+ have driven a 56 percent and 59 percent sales spike, respectively, in the second-hand sector over the past 12 months.

Social commerce is another area experiencing rapid growth, with a 32 percent jump in August sales compared to the same month in 2023. Experts project this trend could deliver a 212 million pound boost to the sector during the Golden Quarter - a 123 million pound increase on the previous year.

Interestingly, the data also suggests consumers may be prioritising experiences over material gifts this Christmas. Spend on ticketing websites has risen by 9 percent year-on-year, led by a 10 percent increase among 35-44-year-olds, while experience providers have seen a steady 6 percent sales uplift.

"Shopper habits continue to evolve, and it's key for retailers to understand and anticipate how people are prioritising their spending," Grieves added. "The good news is there is a great deal of insight available to brands to help them make a success of such an important time of year."

The consumer insights from Experian and Reward have been published in a new report, marking the start of a regular series that will highlight emerging spending trends among UK consumers.