Consumers Blame Economy as Xmas Sales Fall by GBP245m

LONDON, January 12, 2011 /PRNewswire/ --

- Intersperience Explains Consumer Behaviour Behind Festive Retail Data

- Economy Fears Outweigh Snow Factor in Festive Sales Drop

- Almost 1 in 6 Christmas Gifts Ordered Online did not Arrive

- 25% of Online Shoppers Said Problems Made Them Spend Less

Fears about the economic situation, rather than heavy snow, were the main reason for a fall in UK consumer spending in the run-up to Christmas, according to a new survey by Intersperience, the international consumer research specialist.

Four out of ten shoppers said economic uncertainty made them more cautious and contributed to them spending around GBP245 million less than they did last year.

Poor weather boosted internet sales, with 35% of shoppers spending more online than they had expected. However, 68% of people said they experienced some kind of problem with website purchases this Christmas.

Paul Hudson, chief executive of Intersperience, said: "Our survey clearly shows that economic confidence had a bigger negative influence on actual Christmas spending than snow. Harsh weather drove more people online but consumers told us even before the snow hit that they would spend less. People feel the financial situation is more negative than last year and that remains a key worry for the retail sector."

Consumers over the age of 25, who account for the vast majority of retail sales, spent GBP313 per head, which was GBP7 per head less than last year.

Chief executive Paul Hudson said: "Over the years our surveys show that people always spend more than they intend to but this time 70% of shoppers who set a budget stuck to it, which is unusually high. It is clear that people are keeping a much tighter rein on their finances, even though the recession officially ended many months ago."

Consumers told Intersperience in the run-up to Christmas that online shopping would be more important to them this year than ever. While 81% of consumers shopped online, this is a much lower proportion than had been anticipated.

One in six online shoppers, or 17%, failed to receive at least one present by Christmas Day, while 11% received a wrong item or something they were not expecting. And 25% of consumers spent less online as a result of such problems.

Chief executive Paul Hudson said: "The majority of those that went online looking for a bargain or to beat the snow had a problem of some kind. Overall, online retailing failed to live up to people's expectations and the problems they faced receiving orders put them off further internet purchases."

NOTES TO EDITORS

About the Intersperience Christmas Shopping Survey:

Intersperience conducted a comprehensive survey of shoppers in the UK on their spending and shopping habits in the run-up to Christmas 2010 and the week after. The survey used quantitative and qualitative research methods to analyse spending and shopping behaviour and includes consumers' views on online retail experiences, shopping on the high street, in superstores, or via mail order. It includes data on the impact of technology and economic factors on consumers and analysis of differences in the behaviour and preferences of consumers aged 18-24 and those aged 25 and above.

About Intersperience:

Intersperience is an international consumer research specialist with expertise in consumer behaviour, experience and attitudes. The team has more than 25 years experience in analysing consumer behaviour. It employs a range of interpretative models and frameworks including a proprietary online research platform. Intersperience has significant global expertise and an international research hub at Lancaster University which conducts research in more than 60 languages as well as associates in major global markets. Intersperience is an expert in how technology impacts on consumer behaviour and multi-channel customer service strategy. Clients include: Matalan; Iceland; Samsung; ScottishPower; William Hill; General Motors, and The British Council.

    
    For more information:

    http://www.intersperience.com
    Tel: +44(0)15395-65450