A quarter of UK consumers plan to treat themselves this Christmas, finds Blackhawk Network (BHN)

• 22 percent of UK consumers plan to buy themselves gifts this Christmas 
• 47 percent of UK consumers plan to turn to AI to help with Christmas gifts 
• Almost half (40%) of the UK plan to rely on credit cards this holiday season 
• 56 percent of Gen Z admit to receiving at least one bad gift a year 
• 42 percent of consumers plan to give gift cards as a present this year 

Research released today by Blackhawk Network (BHN) reveals trends towards self-gifting, technology-driven shopping solutions as UK consumers hit the shops for the festive season.

The research surveyed 9,507 consumers across EMEA and reveals vital insights for retailers as they look to shape their Christmas strategies for 2024.

All I want for Christmas is… to choose our own gifts?

Christmas gifting is turning inward this festive season. 22 percent of respondents are planning to buy themselves Christmas gifts this year – a figure that climbs to 3 percent % among Gen Z and just 8 percent among Boomers. The trend points to evolving consumer behaviours in an era of increased personalisation and self-care. Gen Z stands out once again as a generation dissatisfied with presents, with a staggering 56 percent admitting to receiving at least one bad gift each year.

AI makes its presence felt 

It has been impossible to escape the impact of AI in 2024, and the prevalence of this technology is making its way into gifting too. Nearly half (47 percent) of consumers plan to use AI to help them purchase gifts this year. Respondents cited reasons such as creativity, and personalised gift ideas, but the strongest reason once again points to budget. Most shoppers will, however, turn to AI this Christmas to help find the best prices (16 percent).

Shopping habits wrapped up in concerns about the economy 

38 percent of shoppers expect to have Christmas shopping sorted in November. And 17% of people are planning on shopping earlier this year than last year, with 34 percent of people who are planning on shopping earlier doing so for budget reasons rather than to find the right gift.

As such, the state of the economy still weighs heavily on consumers’ minds, with 21 percent intending to change the way they shop because of economic concerns. This includes 57 percent who are planning to buy less expensive brands or own-brand products.

The biggest cost concerns for UK consumers are utilities (65%), inflation (60 percent), food costs (60 percent) and job security (28 percent).

UK consumers weigh up cash versus credit cards

Despite such concerns, 40 percent of the UK plan to rely on credit cards to purchase gifts this festive season, compared to 44 percent last year. 38 percent do however plan to use cash, with the most popular reason being cash helps towards budgeting (53 percent).

Despite all the efforts to budget, almost a third (30 percent) of people have no idea what they spent on Christmas shopping last year.

The perfect gift is a gift card? 

Once again, gift cards remain a popular choice for gifting, with 62 percent of UK consumers stating they have bought a gift card in the last 12 months. In 2023, 50 percent of UK consumers bought a gift card for a loved one’s favourite brand, and 33 percent opted for multi brand gift cards as choices for gifts. This year, 42 percent of consumers intend on purchasing a multi-use gift card as a present. It therefore is no surprise that this Christmas, there remains a significant opportunity for retailers when developing their seasonal gift card strategy.

Anna Uprichard, Vice President, Commerce at BHN, comments: “There are some clear trends impacting consumers this Christmas, from budgets, to technology, and even self-use. For retailers, it is vital to listen to customer needs and continue to pivot as Christmas approaches. Whether that is rewards and incentives for customer loyalty that help them spread the cost this Christmas, or heavily promoting items such as gift cards to help shoppers avoid being branded as ‘bad gift givers’, retailers have a wonderful opportunity to meet consumers gifting needs this festive season.”

Image courtesy of Pexels. Photo credit: Leeloo The First.