People stick to their budgets and don’t trust the economy
People in the UK were more concerned with the economy than they were with the snow when it related to spending curbs registered over Christmas.
Economy, not snow, reason for spending fall at Xmas
Thursday, January 13 2010 by John Burns
It was the economic situation, as opposed to the heavy snow that was the main reason for a fall in UK consumer spending online in the run-up to Christmas, according to a recently-released survey.
Intersperience, an international consumer research specialist, highlighted how managed emarketing may need to be pushed further to redress the balance in the coming months, after four out of ten shoppers revealed that economic uncertainty made them much more cautious and contributed to spending of around £245 million less than in December 2009.
Despite this, website promotion was perhaps well-placed nonetheless, as weather boosted internet sales. Intersperience discovered that 35 per cent of shoppers spent more online than they had expected, though 68 per cent of people said they ran into problems with website purchases.
Chief executive of Intersperience Paul Hudson said that people regard the current financial situation as much more negative than they did last year, creating a key worry for the retail sector.
“Over the years our surveys show that people always spend more than they intend to but this time 70 per cent of shoppers who set a budget stuck to it, which is unusually high,” he continued. “It is clear that people are keeping a much tighter rein on their finances, even though the recession officially ended many months ago.”
This was reinforced by research confirming that people over the age of 25, who claim the majority of retail sales, spent £313 per head – £7 less per head than 2009.
And while online shopping was high, many website promotion campaigns were not backed up by swift action. One in six online shoppers failed to receive at least one present by Christmas
Day, while a further 11 per cent received the wrong item or something they did not expect.
Of course, online spending is still expected to rise further. Tealeaf found that the importance of strong managed emarketing after finding that 44 per cent of Britain’s online adult population had boosted internet spending during the Christmas period.
Living Streams “Improving clients’ profitability through better use of the internet”.