WEBLOYALTY & CONLUMINO LOOKING AHEAD… CHRISTMAS SPENDING & TRENDS …€¦ · fashion to electronics to travel at many top online stores. Webloyalty was established in the UK in

LOOKING AHEAD… CHRISTMAS SPENDING & TRENDS IN IRELAND

WEBLOYALTY & CONLUMINO

NOVEMBER 2014

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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



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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Christmas



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 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



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



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



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



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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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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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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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



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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Christmas



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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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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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



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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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



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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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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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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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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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 About the research

Methodology

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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

Documents

WEBLOYALTY & CONLUMINO LOOKING AHEAD… CHRISTMAS SPENDING & TRENDS …€¦ · fashion to electronics to travel at many top online stores. Webloyalty was established in the UK in