31% are likely to wait for pre-Christmas sales before buying all their gifts in 2012
London, 18th Jan 2012: As the January sales come to an end, Lightspeed Research has surveyed1000 people to understand how the retailers’ selling tactics in the lead up to Christmas 2011 are viewed by consumers. With many retailers slashing prices in the final run up to the big day, how many shoppers were frustrated and annoyed at seeing items they’d bought earlier reduced in price? And what impact will this have on Christmas shopping behaviour in 2012? Have these short-term tactics done long-term damage?
The research shows that 75% of respondents had bought most of their gifts by mid-December, with 15% waiting until two weeks before Christmas and 9% until the Christmas week to hit the stores. The remaining 1% left their shopping until Christmas Eve. 4% of 25-34 year olds and 2% of men fall into this ‘seat of pants’ category.
More than half always looked for a bargain in 2011
For Christmas 2011, bargain hunting was certainly an important consideration, with more than half (51%) of respondents admitting to ‘always’ looking for a bargain when shopping for gifts, a third (33%) ‘sometimes’ and only 4% ‘never’ seeking out an offer. With so many people concerned with saving money, it is perhaps no surprise that 18% of respondents waited until the pre-Christmas sales to do at least some of their gift shopping last year, rising to almost a quarter of 24-44 year olds. 37% of them bought Christmas gifts in the sales, 23% bought items for themselves or their home,and a super-organised 8% bought gifts for Christmas 2012.
Educating consumers to wait for the sales
21% of all respondents asked for money instead of gifts for Christmas 2011 (rising to 40% of 18-24 year olds)in order to buy what they wanted in the sales. However, this figure is set to rise by up to ten percentage points to 31for Christmas 2012. Half of 18-24 year olds surveyed already plan to ask for money or vouchers this year.
So what did the bargain-hungry shoppers think and do when they saw items they had already bought reduced in price before Christmas?
More than half (51%) took no action, but 12% asked for a refund and bought the item at the sale price, 11% had the retailer refund the difference and 8% got a refund and shopped elsewhere. Overall, 56% of consumers have a negative response to pre-Christmas sales, from feeling cheated, to stupid, to angry (see chart below). Notably, the ‘angry’ 16% said they were less likely to use the offending retailer again as a result.
42% said that that the pre- and post-Christmas sales have changed their approach to gift buying for Christmas 2012, with 15% much less likely to pay full price for gifts, 13% starting shopping closer to Christmas to take advantage of the sales and 8% only buying things on sale.
Ralph Risk, Marketing Director for Europe says “It may have been a cash-strapped Christmas for many in 2011, but our research seems to suggest that the tactics employed by some retailers to get shoppers to part with their cash at this crucial trading time may have stored up problems for the future. With the proliferation of daily deal schemes, pre-Christmas sales and other on-going promotions, consumers are getting used to not paying full price for items. Aggressive discounting may have an ongoing impact on brand and value perceptions meaning retailers find it more difficult to charge full price for items and in the long term may even erode their brand value.
The vast majority of people in our research had done their shopping by mid-December, and with these people making up 75% of the respondents, appealing to a minority by offering them discounts at the expense of upsetting the majority may cause more people to change their shopping habits, and their retailer loyalties in 2012.”
Ends
For press enquiries please contact:
Lynda Hardy Maskell, Greenfields Communications
lynda@greenfieldscommunications.com T: 07979 646020
Ralph Risk, Marketing Director Europe – Lightspeed Research
rrisk@lightspeedresearch.com Tel +44 (0)20 7896 1950 / +44 (0)7876 507689
About Lightspeed Research
Lightspeed Research delivers valuable data to help clients make informed business decisions. With proprietary online panels throughout the world, our verified, engaged, and deeply profiled survey respondents can support research studies that vary in scope and complexity. Lightspeed Research’s expert Client Operations Team offers data collection services including survey design, sample management, programming and reporting. The company has offices throughout the United States, Europe, and Asia Pacific. Lightspeed Research is part of Kantar, the information insight and consultancy division of WPP. For more information, please visit www.lightspeedresearch.com
