2017 predicted to be the worst consumer Christmas spend since 2012
After analysing consumers’ spend in November, Visa summarised ‘November’s poor performance means that we stand by our earlier prediction that the UK will see its first fall in overall Christmas spending by consumers since 2012.’
Their numbers showed ‘that household spending fell by 0.9 per cent on the same month a year ago, following a 2.1 per cent decline in October.’
Mark Antipof (Visa’s Chief Officer for Commercial) explained that the decrease in consumer spending is a result of consumer making changes to their shopping priorities because ‘of the increasing strain on household budgets.’
Antipof added, ‘Cutbacks on big-ticket items such as car purchases and bookings for Christmas trips abroad led to the largest drop in spending’.
Visa’s press release confirms the fact that consumers’ spend during Black Friday weekend had declined from the year before.
Prior Black Friday, Visa forecasted that although overalls sales will be a disappointment, online and mobile ‘are set to take a record share of Christmas spending.’ This appears to be true from Springboard’s statistics; as quoted by the Telegraph ‘footfall was down 4.2pc on last year.’ In addition, Bloomberg reported that online sales are ‘up 6 percent’ from the year before as published by PCA Predict.
Brands and retailers will have to adapt their eCommerce experience and their marketing strategies in order to trigger an increase in consumer spend.