UK consumers most concerned about high inflation in lead up to holiday season
New Loqate report reveals 60% of UK consumers are hybrid shopping this holiday season and expect consistency at every step
LONDON – October 05, 2022: 2 in 3 (66%) of UK consumers say high inflation is their biggest concern in the lead up to the holiday season, reveals The 2022 Holiday Report published today by Loqate, a GBG solution. The global survey carried out annually provides insight into consumer plans and expectations for the busiest shopping season of the year.
Despite the current cost of living crisis in the UK, the research reveals nearly 1 in 4 (24%) Brits are planning to spend more than last year on holiday gifts and nearly 1 in 3 (30%) are planning to spend the same as last year. However, global results show consumers who have lived through past economic crises are keeping a more watchful eye on holiday spending than younger generations. Globally only 16% of baby boomers are spending more this year compared to 21% of Gen X, 31% of Millennials and 38% of Gen Z.
Hybrid experiences dominates
This year’s survey also shows shoppers plan to embrace the new future of retail – hybrid experiences. Although 28% of UK consumers expect to do the majority of their shopping online, 60% will be hybrid shoppers, illustrating the need for retailers to bridge the digital and physical to support the 85% of shoppers who expect consistency during every interaction, no matter where it takes place.
“The economy is changing fast, but customer preferences are changing faster, and success for retailers means meeting growing expectations for shopping flexibility and delivery reliability this holiday season,” said Matthew Furneaux, global commercial director at Loqate, a GBG solution. “With the right strategies and tools in place to ensure a pleasant experience wherever consumers shop, retailers can build customer trust and loyalty this holiday season.”
Growing concerns about on-time delivery and supply chain issue
Supply chain issues and low inventory are motivating consumers to get a jump on shopping as early. Globally, 87% plan to start shopping before December and in the UK specifically, over a fifth (22%) of consumers already began holiday shopping before September. A further third (31%) plan on starting during November but may be impacted by planned strikes by Royal Mail workers in the UK, which will be held during Black Friday week and Cyber Monday in November.
Consumers across the globe are concerned about deliveries with 84% of global shoppers concerned about packages arriving on time. Late deliveries continue to have a huge knock-on impact to customer loyalty, with half (51%) of UK respondents saying they would ‘not likely’ make a repeat purchase with a retailer if their initial order did not arrive in time for the holidays. This is significantly larger than the US, where only third (34%) of respondents said the same. Retailers can counter concerns by enhancing their checkout with tools, such as address auto-complete, and exploring alternative fulfilment options to minimise last-mile issues and increase consumer confidence.
Free shipping and promotions will drive purchases
Globally, 18% of consumers consider free shipping the most important purchasing factor, while promotions and discounts take the top spot for 17% of shoppers.
Check-out can make or break the shopping experience
Check-out can make or break the shopping experience. Consumers expect an easy checkout experience and aren’t afraid to abandon the process. 24% of shoppers say they will abandon their carts if checkout is too complicated. Checkouts will be the most critical part of the digital shopping experience. An auto-complete solution for addresses can help retailers alleviate friction. Shoppers enter as little as three keystrokes and, in as fast as 150 milliseconds are provided with suggestions to auto-complete the address.
To access the full report, please visit: https://www.loqate.com/en-gb/the-2022-holiday-report/report/
About Loqate
Loqate is the world’s most trusted location intelligence service, helping every business in the world reach every customer in the world, with a single global API for address verification. Over 20,000 businesses rely on Loqate every day to reach their customers across 250 countries and territories. Loqate’s expertise in global addressing is supported by team members located around the world, including the U.S., UK, Germany, Malaysia, China and Australia. Loqate is a GBG solution. GBG, experts in digital identity, offers a range of solutions that help organizations quickly validate and verify the identity and location of their customers. For more information, visit: www.loqate.com and www.gbgplc.com.