Consumer Spending Intentions: Unravelling Black Friday and Christmas Buying Dynamics

How does Seasonality Impact Spending?

A primary driver of changes in spending habits is the seasonality factor. This reflects a cyclical pattern of high and low spending periods, which fluctuate throughout the year according to personal budgets, marketing activities, and entrenched cultural norms. Notably, two periods -- the end of November and December -- witness spikes in spending due to the culturally significant events of Black Friday and Christmas respectively.

What are the Patterns in Black Friday Spending?

Black Friday, originally an American phenomenon, has, through the proliferation of online retailing, become a global event that often marks the beginning of the festive shopping season. It is characterised by massive sales and promotions that encourage increased expenditures. However, the draw of these ostensibly discounted prices has been questioned in some quarters, as investigations have revealed regular pricing trends to be manipulated in the preceding period. This calls into question consumer judgment and decision-making during such promotional periods.

How are Christmas Shopping Habits Changing?

Turning to Christmas, traditionally, this period has been a critical time for retailers, as consumers purchase gifts and celebratory items. However, long-term trends suggest changes in these patterns, with an increasing tendency for last-minute shopping and a shift towards experiences and consumables over material goods. As well, the progressive online shift has led to a reduction in physical footfall, affecting both the offline retail sector and the broader logistical demands of this period.