Consumers Adapt Strategies Amid Cost-of-Living Crisis
- UK households to spend £3bn less on Christmas shopping this year
- Consumers plan to start shopping earlier and use online marketplaces to stretch budgets
- 79% of consumers plan to cut back on non-food spending
- Online marketplaces expected to account for almost £202bn in sales across 8 markets during peak season
- 64% of UK consumers plan to do most shopping online
- 40% of UK shoppers start Christmas shopping before October, 15% in August
A new report by ShipEngine, ShipStation and Retail Economics reveals that UK households will have £3bn less to spend on Christmas shopping this year. In response, consumers plan to start shopping earlier and use online marketplaces to save money. The Peak Season Report 2023 predicts a total of £17.9bn spent on online marketplaces during Black Friday and Christmas in the UK alone. With inflation and lack of savings as top concerns, 64% of consumers plan to do most or all shopping online, while 40% start before October. One-quarter of merchants plan more promotions this year.
Factuality Level: 8
Factuality Justification: The article provides accurate information from the research conducted by ShipEngine, ShipStation, and Retail Economics about consumer spending habits during the holiday season. It presents relevant data on how inflation is affecting UK households’ budgets and how consumers plan to mitigate this issue. The article also includes quotes from Richard Lim, CEO of Retail Economics, which adds credibility to the information presented.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of inflation on consumer spending during Christmas and how people are adapting their shopping habits. It also includes data from a survey to support its claims. However, it could benefit from more in-depth analysis or discussion of the long-term consequences of these trends.
Financial Relevance: Yes
Financial Markets Impacted: UK retailers, online marketplaces
Financial Rating Justification: The article discusses the impact of inflation on UK households’ spending power and how it affects their Christmas shopping habits, which in turn impacts the financial markets through consumer behavior and sales for retailers and online marketplaces.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses the impact of inflation and cost-of-living crisis on consumer spending habits.
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