When it comes to Golden Quarter budgets, consumers remain cautious but confident, according to research from Visualsoft

• 13% of consumers plan to increase spend YoY
• Average spend set to be £567.97 in Golden Quarter
• 21% of consumers prefer to support independent retailers
• Only 1 in 4 (26%) plan one month or more ahead
• Younger generations more optimistic, with a third of 18-24 year olds set to spend more than in 2023

Research released today by leading eCommerce provider Visualsoft, reveals that overall consumer attitudes to the upcoming Golden Quarter reflect a mix of stability and optimism, with many planning to maintain or increase their spending.

The report ‘Make Golden Quarter 2024 shine: Unwrapping UK shopper gifting trends for dazzling engagement’ delves into British attitudes towards online shopping uncovering key preferences, sentiments, and purchasing behaviours ahead of Christmas.

Mixed picture on budgets

Overall 13% of consumers plan to spend more than in previous years, indicating an increase in consumer confidence or expectations of better deals. But a large majority of shoppers (57%) are aiming to spend the same as in 2023 which could see some retailers’ revenues remaining flat.

One in three (35%) plan to spend between £101 and £500 with a sizeable fifth (19%) looking to invest £501-1000, making the average budget £567.97. Londoners and Scots are the most generous, with 14% and 13% respectively saying they will spend over £1000, compared to 5% in the East Midlands and 6% in the south west of England.

Last minute purchasing

The survey reveals that not everyone is planning their spending early. With a quarter (27%) saying that they’re still unsure, there’s an opportunity for retailers to leverage last minute trends and nudge audiences to increase basket size with smart marketing campaigns. Just a quarter (26%) of shoppers say they plan their Christmas shopping more than 1 month ahead, providing brands with multiple opportunities to influence purchasing right up to key moments.

Generational differences are evident

Merchants targeting younger consumers could fare much better with a third (33%) of 18–24-year-olds set to spend more, compared to just 4% of 55-64s.

High target items are gadgets, skincare/cosmetics and fashion, which lead the way across all age groups – with 18-24 year olds the most likely (33%) to splash out on ‘luxury items’. More experience-led offers are appealing to younger demographics, with 17% of 18-24-year-olds interested in virtual experiences, and 13% interested in subscription boxes.

Books and stationery show a peak in interest among the 45-54 age group, with approximately a quarter (28%) of this demographic indicating they will look for these products. There is strong interest among 35-44-year-olds for kids’ toys and games, with 31% saying they will be purchasing these products this year.

Values matter

Just under half of shoppers (47%) treat small online brands and big box retailers equally. But while 16% prioritise major players, there is a growing trend towards smaller independent businesses with 1 in 5 (21%) preferring to support them. Sustainability and purchasing with a purpose are also becoming increasingly important – most evident among 18-24-year-olds (18%). This suggests the Golden Quarter in 2024 may offer a great opportunity for independent retailers to increase their share of the market.

Commenting on the findings, Ashley Wright, Chief Commercial Officer at Visualsoft said, “For many brands the Golden Quarter – starring Black Friday (BF), Cyber Monday (CM) and Christmas – represents the pinnacle of the annual sales calendar. It’s crucial for retailers to ramp up online engagement and deck out marketing campaigns to engage, capture and convert shoppers’ desire to gift, indulge or bargain hunt.”

He continued, “And there are signs that spending will be up for some consumers, despite the cost of living crisis. Retailers have a huge opportunity to influence spontaneous and undecided buyers with targeted messaging and curated offers. However, planning ahead with multiple touch points throughout the next few months, will be crucial for maximising sales this year.”