by Colin Grieves, Managing Director, Marketing Services, Experian UK&I
We know the Golden Quarter is a pivotal period for retailers worldwide. Encompassing major shopping events like Black Friday, Cyber Monday, and the festive Christmas season, it has become a crucial window for driving sales and boosting annual revenue.
However, the ever-changing economic landscape brings new challenges and shifts in consumer behaviour each year. Macro factors continue to influence shopping habits and priorities, making it crucial to monitor spending trends throughout the year. Why? These trends and patterns will show retailers how to effectively navigate this bustling period by understanding how and where Brits may shop so they can adapt their strategies accordingly.
With that in mind, what are some of the key trends for this year’s Golden Quarter? Working with our partner Reward, we created a report that leverages insights from 1.4 billion card transactions made by 4 million UK cardholders. Here are three key trends retailers should factor into their marketing efforts in the coming months.
Online shopping set to shine bright
Whilst online shopping has continued to dominate in the past few years, it seems Brits will be shopping more from the comfort of their own homes this Golden Quarter. Spending is set to rise by 4% compared to the same time in 2023, with instore purchases set to fall by 2%. What that translates to is the potential to generate £28 billion in revenue from the Golden Quarter this year – an increase of £1.1 billion compared to the same period last year.
To make the most of this, having a well-prepared online strategy is essential. Creating a seamless customer experience involves optimising tech infrastructure, offering a variety of payment options, and rewarding loyal customers for their ongoing support and spending.
Brits opt for sustainable shopping
With sustainability becoming a national priority, second-hand shopping has evolved from a niche trend into a mainstream movement. A comparison of transactions at online second-hand marketplaces have shown a 21% increase in total sales from last year to this year.
What is interesting is that many may assume this is coming from the younger generation. However, shoppers aged 45+ have led the surge with sales with these marketplaces climbing by at least 50%. If this spend continues into the Golden Quarter, it could mean an estimated boost of £111 million during those critical months.
To effectively tap into this growing trend, retailers must first gain a deep understanding of their customer base. This involves knowing the demographic makeup, preferences, and shopping habits of their audience. Additionally, it’s crucial to have the right channels and operational strategies in place to meet these evolving demands.
Hunting for Christmas deals on social commerce
The rise of social commerce is a relatively new trend, with major social media platforms now enabling consumers to shop directly from retailers within their apps. Recently, platforms like TikTok have launched dedicated marketplaces, providing seamless shopping experiences where users can browse, interact, and purchase without leaving the app.
Comparing August sales from last year to the same period this summer, there has been a remarkable 32% increase in sales. If this upward trend continues, spending with retailers is likely to get a £212 million boost to the sector this Golden Quarter.
Retailers should act by keeping an eye on where their target audiences are shopping and consider diversifying their sales channels accordingly. Utilising ad strategies on social media platforms can be a game-changer, providing significant potential to increase incremental sales and reach new customer segments.
The Golden Quarter is brimming with major shopping events and the festive season, which significantly boosts consumer spending. To make the most of this period, retailers need well-prepared strategies that capitalise on this surge in consumer activity. The cornerstone of these strategies is understanding the evolving shopping behaviours of their audiences.
This year, there’s a growing trend towards online shopping, with many Brits preferring to shop from home and seeking value through second-hand purchases. By recognising these shifts, retailers can better position themselves to offer the value, convenience, and experiences consumers desire this Christmas, ensuring a successful festive season for both buyers and businesses.
