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All year gifting, 2019

All year gifting, 2019

  • April 2019
  • 163 pages
  • ID: 5568555
  • Format: PDF
  • By GlobalData

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All year gifting, 2019

Summary
Average spend fell across a number of occasions with 30.2% of consumers feeling financially worse off compared to this time last year and therefore prioritizing spending on certain recipients and occasions. Sainsbury’s and ASDA must do more to compete with Tesco as it remains the most popular retailer - 24.5% of all year gifting shoppers purchased a gift from Tesco.

Department stores are popular among consumers for purchasing gifts for occasions such as weddings and birthdays, as 44.9% of UK consumers who purchased a gift in a store bought from a department store. As struggling department store retailers such as Debenhams and House of Fraser close stores, other retailers should position themselves to gain share of gifting spend.

Department stores are the second most popular physical location for purchasing gifts with Debenhams being the eighth most popular retailer for purchasing gifts, and John Lewis tenth, however retailers Tesco and Amazon take the top spots.As most Debenhams and House of Fraser shoppers are unlikely to have a branch of the same retailer nearby, the retailers must focus on persuading these shoppers to purchase online with them after store closures.

Otherwise, the grocers and Amazon are well positioned to steal this gifting spend from department stores.

The popularity of department stores is bolstered by the presence of branded products across a number of sectors, more premium items and a perception of being an appropriate location to purchase gifts for special occasions. Department stores are the most popular for purchasing gifts for weddings and engagements, as quality is the most important driver of retailer choice and gift recipients direct purchasers to department stores due to the presence of gift list services.

To harness gifting spend after the closure of department stores (Debenhams announced the proposed closure of 22 locations last week as part of a CVA) which often have uninspiring product ranges and store environments, retailers should promote the quality of their ranges, especially for more special occasions such as engagement and new baby gifts. Low prices should also be highlighted (53.1% of all year gifting shoppers consider this when choosing where to purchase gifts) on items for occasions such as retirement and life achievements such as promotions or passing driving tests, when consumers wish to spend less.

Supermarkets are in a good position to capture gifting spend as they already offer a wide range of products at low prices, but to entice more shoppers they must improve their reputation for good quality. Amazon is set to grow in popularity due to the appeal of its often lower prices, vast product range and the convenience it offers, especially to Prime members.

The "All year gifting, 2019", report offers a comprehensive insight into the consumer dynamics and spending habits of consumers for year-round gifting occasions such as birthdays, weddings and new babies. The report analyses the major players, the main trends, and consumer attitudes.

Scope
- Card Factory is perceived as the best retailer for promoting deals of all year gifting products, as its expansion into non-card products at low prices has appealed to shoppers looking for value for money.
- Shoppers want advice on what gifts to buy - 74.3% of consumers stated that they believe it is convenient to have a gift list, as advice from recipients can ensure that they give the best present for the person.
- Amazon has continued to further build its appeal in gifts, with 22.3% of consumers who made gifting purchases using the online giant compared to 18.8% last year.

Reasons to buy
- Use our in-depth consumer insight to learn which areas within all year gifting shopping are most important to ensure that product offerings are catering to the needs and wants of customers - for example whether consumers believe they should give a card and/or gift for a certain occasion.
- Understand what drives consumers to choose a retailer for their purchases for certain gifting occasions, such as quality of products, prices and the importance of general gifting ranges in order to maximise sales potential.
- Use our in-depth analysis of the leading retailers for gifting occasions in order to understand how to appeal shoppers and maximise market share.

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