WEBLOYALTY & CONLUMINO LOOKING AHEAD CHRISTMAS SPENDING & TRENDS IN IRELAND NOVEMBER 2014
Introduction Foreword 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. Webloyalty 2 nd Floor, 2 Harewood Place, London W1S 1BX +44 (0)20 7290 1650 enquiries@webloyalty.ie www.webloyalty.ie Conlumino 7 Carmelite Street, London EC4Y 0BS +44 (0)20 7936 6654 hello@conlumino.com www.conlumino.com enquiries@webloyalty.ie +44 (0)20 7290 1650 2
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%. Time commitment The average consumer 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. 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. 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. 3
2013 spending In 2013 we spent 1.49bn on Christmas Breakdown of 2013 Christmas spending Gifts 811.5m Total Christmas spending 1.49bn Food and drink 509.7m Seasonal non-food 173.1m 4
2014 spending This year we just over 1.55bn on Christmas, up 3.5% Breakdown of 2014 Christmas spending Gifts 839.9m Gifts Up 3.5% Total Christmas spending 1.55bn Food and drink 528.0m Food and drink Up 3.6% Seasonal non-food 178.4m Seasonal non-food Up 3.1% 5
Christmas Day Having lunch with the family, watching TV and opening presents are the most popular things to do on Christmas Day What will you be doing on Christmas Day this year? 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 Have a lie-in Play board radio games Have Christmas lunch with my inlaws Play computer games Work Wrap Catch up on presents that the I have put housework off wrapping before Be abroad on holiday 6
Christmas The games we will play What games, if any, will you play on Christmas Day? All figures are percentages Charades Monopoly Trivial Pursuit Scrabble 9.3% 8.3% 6.9% 6.9% Cards 5.4% Operation Guess Who? 2.9% 2.7% 7
Essential purchases Almost 8 out of 10 say that presents are an essential purchase; while over half say cards are still essential What are your essential Christmas purchases? Presents 78.3% Cards 60.3% Chocolates 47.2% Biscuits 32.3% Nuts 28.3% Alcohol 27.9% Fruit 26.5% Decorations 20.3% Champagne 11.2% Jumpers 3.3% 8
Spending Those who buy gifts an average of 326 on them How much will you spend on Christmas gifts? 14.4% under 100 16.9% 100-149.99 17.6% 150-199.99 14.1% 200-299.99 7.4% 300-399.99 7.7% 400-499.99 16.8% 500+ 5.1% say that they nothing on Christmas gifts this year 9
Change in spending The majority plan to spend more or the same as they did last year How does your planned spending on Christmas gifts compare to last year? Plan to spend more than last year Plan to spend about the same as last year Plan to spend less than last year Did not buy last year and will not buy this year 8.8% 63.2% 24.7% 3.3% 10
How we will shop The majority of people will use both online and stores How will you shop for Christmas this year? h w h+w Both online and in store In store only Online only, while at home Online only, while at work Online only, at work and home 68.0% 16.4% 8.4% 4.5% 2.7% 11
Sending cards The vast majority are still planning on sending printed cards Are you planning to send printed or online Christmas cards this year? Printed only Online and printed Don t plan to send any Online only 65.5% 16.0% 15.2% 3.3% 12
Sending cards On average we will send 28 Christmas cards each How many cards do you plan to send this Christmas? 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% 13
Spending on the meal Over half 10 or more per head on the Christmas meal How much do you typically spend on your Christmas meal per head? 7.9% under 4.99 27.4% 5-9.99 28.8% 10-14.99 13.2% 15-19.99 10.2% 20-24.99 3.3% 25-29.99 9.2% 30+ 14
Online food shopping Most consumers prefer to do their food shopping in store Are you doing your food shopping online this Christmas?? No Not yet decided Combination of online and in store Yes 70.1% 10.6% 10.2% 9.1% 15
Why we buy food online Saving time and money are the main reasons for buying online Why do you buy food 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 16
Where we ll shop Over a quarter plan to use Tesco for their Christmas grocery shop Which of the following retailers are you planning to use for your Christmas food and grocery shopping this year? 25.4 23.1 21.9 19.2 14.7 8.9 7.6 Tesco Dunnes SuperValu Marks & Spencer Others Aldi Lidl 17
What we ll eat Roast potatoes are a favourite with over 8 out of 10 eating them Which foods do you usually eat as part of your Christmas meal? 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 18
Time spent shopping On average consumers almost 12 hours Christmas shopping How many hours will you spend in total shopping for both Christmas food and gifts? 17.5 18.7 5.8 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 19
Total budget The average consumer 578 on all aspects of Christmas What is your total budget for Christmas? 11.7% under 100 11.1% 100-199.99 21.0% 200-299.99 9.5% 300-399.99 12.1% 400-499.99 21.1% 500-999.99 13.5% 1,000+ 20
The seasonal sales Just over 40% will not spend in the seasonal sales When do you intend to take advantage of the seasonal sales? 40.3 19.7 12.3 3.7 3.0 8.1 14.5 4.3 8.9 I do not expect to Before Christmas Eve Christmas Eve Online on Christmas spend anything during Day the sales Boxing Day 27th December 31st December New Year s day 2nd January 10th January After the 10th January 21
Sales shopping Almost a fifth will only shop online during the sales How will you shop during the seasonal sales? Which device or devices will you use to make your purchases online? % Desktop PC 50.7 Laptop 47.2 Mainly online Both online and in store Online only Tablet 22.1 Mobile 14.0 50.3% 31.0% 18.7% Internet enabled TV 1.8 Other device 2.3 22
Present buying in the sales 18% will buy at least some presents during the sales period Will you hold off until the seasonal sales to buy Christmas presents? No 82.0% Will buy some, but not all presents in the sale 14.1% Yes 3.9% 23
Methodology About the research
Methodology 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. enquiries@webloyalty.ie +44 (0)20 7290 1650 25
Webloyalty +44 (0)20 7290 1650 enquiries@webloyalty.ie 2nd Floor, 2 Harewood Place, London W1S 1BX Conlumino +44 (0)20 7936 6654 hello@conlumino.com 7 Carmelite Street, London EC4Y 0BS