KD Consulting MR Vacancies



Cautious Optimism for Christmas 2000
13/12/00



On the perenially engrossing subject of Xmas presents, Mintel's new report, "Christmas Shopping Habits", highlights a cautiously optimistic Christmas shopper, with unprecedented value for money for this year's consumer.

Latest research from Mintel finds that despite the strength of the economy, expenditure on Christmas gifts may not be significantly higher than 1999 due to low inflation and the continued presence of cheaper imports. Mintel estimates current price growth year-on-year December retail sales across all areas to be in the region of 3-3.5% less than 1999's 4%. According to Neil Mason, Retail Consultant "Low inflation and cheaper imports mean that retailers are able to offer unprecedented value to consumers this year." Almost a quarter of the 1,754 adults questioned are intending to shop from home this Christmas, with 18% expressing an interest in shopping via mail order – up from 15% in 1999. Interest in online shopping doubled from 3% of consumers in 1999 to 6% in 2000. There is relatively little overlap in use of mail order and use of online. Use of mail order is heavily skewed towards women in family and empty nester groups, whereas use of online is mainly focused on the pre-family group. By contrast, online is a very male orientated channel for shopping, with men twice as likely to shop online than women. Clothing ranks at the top of the list as the most popularly purchased as well as received Christmas gift. Since 1998, books have displaced chocolates and other confectionery from the top three most popularly bought gifts, and pre-recorded music has jumped ahead of chocolate and confectionery which looks to be in something of a decline. Although not a highly rated gift, receiving a subscription to digital TV is preferred by three times as many adults as intend to give it as a gift - a clear opportunity for those that want this as a gift to make their feelings known to potential givers. Mobile phone retailers have enjoyed some very buoyant Christmases in the recent past, but the response rate for having an intention to buy a mobile phone or pre-paid phone among the 2000 sample was four times greater than in previous years. This suggests that retailers in the sector can expect a significant uplift in consumer interest in the category this year. And finally, for all of you who have not yet done your buying, the survey found that the proportion of last-minute shoppers (25%) now exceeds the proportion of early planners (24%). With Christmas Eve falling on a Saturday, the last minute rush is going to be even later than usual. It is also the case that the proportion of those that claim to hate Christmas shopping (30%) is greater than the proportion stating they enjoy it (27%). However, the fact that the latter increased from 22% in 1999 is a positive finding, indicative that an element of shoppers, mainly younger adults and women, see shopping as a legitimate leisure activity that can be enjoyed not endured.