UK lags behind US in predicted consumer spending this Christmas
Research released today from the company Fiverr has shown emerging trends that UK retailers will be struggling this festive season, despite beliefs that black Friday will boost revenues.
Only 16 per cent of UK consumers are planning to spend more than last year, compared to double the amount of US consumers 32 per cent.
27 per cent of UK consumers have actually stated they will be spending less this year.
This follows a recent analysis by Virgin Media Business which revealed approximately 80 per cent of London business owners believed that the black Friday sales event, starting on the 24th of November, will have a positive impact on revenues.
Fiverr found that 54 per cent of UK retailers who were surveyed are planning to offer steeper discounts for 2023, expected to reduce prices by an average of 23 per cent in order to encourage spending.
However, the biggest challenge facing UK small and medium retailers is competition from larger eCommerce brands like Amazon and Etsy, with 55 per cent worrying that their domination is negatively impacting their sales.
Over a third of UK retail leaders said staffing shortages were a concern this Christmas season, and 34 per cent are planning to work with more freelancers to support talent gaps.
As well as this, just over half of UK retailers said they plan on using AI tools to expedite work
Fiverr’s Head of UK, Bukki Adedapo comments: “UK retailers are set to face another challenging festive season. Recent data from ONS highlights that consumers are continuing to practice frugality around spending, and these new findings from Fiverr anticipate that this will be likely to extend to the festive season.
“One area for concern is the lack of staffing for the retail industry as a whole, with unemployment rising in the UK, freelancers are providing a lifeline for many as they tackle the busy festive season.”