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No late shopping surge, warns KPMG
Last minute shoppers add little value
Any UK retailers pinning their Christmas trading hopes on a late shopping surge could be disappointed, according to the latest figures from KPMG.
Data from the third and final study of Christmas shopping trends, undertaken by YouGov on behalf of KPMG, shows that many people are still planning to complete their Christmas shopping as late as possible. However, the numbers also suggest that much of that late shopping surge may not actually be worth as much in real terms as retailers would have hoped.The survey, undertaken on December 14 and 15, revealed that 17 per cent of shoppers now expect to complete their festive purchasing on Christmas Eve, up from 13 per cent in the previous survey two weeks ago. Forty-four percent of people were planning to leave it until the last full week before the holiday. Ten per cent of shoppers have still done no Christmas shopping whatsoever although the figure is markedly higher amongst men (16 per cent) than women (5 per cent).
Helen Dickinson, head of retail at KPMG, said: "Despite the large number of people leaving it late, there is now a growing fear that much of the late shopping spree could be made up of small scale, low value, 'top-up' shopping. This means that any retailers banking on the last few shopping days before Christmas to rescue their season*#*8217;s trading results could well be disappointed."
The survey found that 73 per cent of shoppers now claim to have completed at least half, if not all, of their Christmas shopping. When it came to spending, 36 per cent of respondents said they would be spending in excess of £400 on Christmas shopping this year, while 20 per cent of respondents had already spent that amount. more than £400. A further 32 per cent indicated they would spend between £200 and £400, and 32 per cent have already spent this amount.
This indicates that much of the value of this year*#*8217;s Christmas shopping has already gone through the retailers' tills. Dickinson said: "It is notoriously difficult to project the trend of spending in the lead up to Christmas, giving all the factors at play, including the timing of Christmas Day.
"When Christmas trading looks sluggish, it is often presumed that the usual late Christmas rush will save retailers*#*8217; blushes. I have no doubt that footfall through the UK*#*8217;s retail outlets will increase dramatically in the coming days. How much that increased custom is actually worth is now open to conjecture.
"However, there is still much to play for amongst the UK retailers. Those which are well set up in terms of product, stock availability and customer service will be the winners. The need to get these aspects right is greater now than any other time in the year. Retailers will have to work harder than ever simply to earn their just rewards but there is still plenty to play for."
Tagged as: KPMG
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