Brits prioritise practical gifts with Christmas spending

A recent survey conducted by ShipStation reveals a shift in consumer spending habits in the United Kingdom as the Christmas season approaches, with Brits focusing more on practical gifts with immediate utility.

The survey highlights variations in planned Christmas spending across generations. A notable change is observed among Gen Z and Millennials, with 85% of Gen Z respondents and 87% of Millennials indicating they have over GBP £100 to spend, and a significant portion planning to spend more than GBP £500. In comparison, 82% of Gen X and 77% of Boomers have set aside over GBP £100 for the festive season, but only 41% of Gen X and 38% of Boomers plan to exceed GBP £500. This indicates a robust intention to spend, despite generational differences.

The survey further reveals a declining interest in traditional Christmas gifts. Long-standing popular categories such as books and media are seeing diminished interest, with 31% of Millennials, 29% of Gen X, and 19% of Boomers planning to cut back. This may be attributed to the rising influence of digital content on leisure habits. Similarly, beauty and personal care items are witnessing a downturn, with spending intentions down by 25% overall; Millennials lead this decrease at 28%, followed by 25% of Gen X and 19% of Boomers. These shifts suggest a preference for simpler gifts that avoid the challenges of personal tastes.

Gift cards, traditionally viewed as versatile options, are also declining in popularity, particularly among younger shoppers. Among Gen Z, 34% intend to reduce spending on gift cards, with 29% of Millennials following suit, whereas Boomers show less intention to move away from this category, with only 16% planning a reduction. This indicates a broader movement towards non-traditional gifts.

The survey also addresses where British consumers plan to shop this year. A majority, 70%, expect to conduct their Christmas shopping on ecommerce platforms such as Amazon, with only 28% opting for small, independent brands. Gen Z shows a strong inclination towards ecommerce (71%) and is more likely to use social media channels (32%) for shopping than other generations, presenting opportunities for digital engagement by brands.

When asked about their spending items, respondents indicated a strong preference for food and beverages, with 83% of both Gen X and Boomers retaining or increasing their budgets in this category. For Millennials, the figure stands at 81%, and 41% of Gen Z plan to raise their spending. Clothing and accessories remain steady favourites, particularly among Millennials (72%) and Gen X (68%), with Boomers at 61%. Electronics are catching the interest of many, especially 45% of Gen Z maintaining similar spending, along with 27% of Millennials who plan to increase their budget.

Matthew Trattles, VP of SMB at ShipStation, commented on the findings: "The data from our survey paints a clear picture, traditional gifts are losing their charm as consumers prioritise spending on more tangible and consumable gifts. Food, fashion, electronics, and self-care products are now at the forefront of gifting preferences, while traditional categories like books, home decor, and gift cards are seeing a decline. Retailers should take this opportunity to understand their core demographic, recognising that they will continue to evolve and this is an ongoing exercise. By adapting quickly to consumer preferences, retailers can better position themselves for success in the ever-changing market."