UK DIY News
GlobalData: Easter Spending Expected To Reach £1.9bn
- Easter spending expected to rise to £1.9 billion as more UK consumers intend to participate in festivities, says GlobalData
UK consumers are set to spend £1.9 billion this Easter, a 4.0% increase on 2023. Spend on Easter food and drink is expected to drive the uplift as consumers plan to splash out, feeling less restricted by financial pressures amid the cost-of-living crisis, according to a report from GlobalData, a leading data and analytics company.
GlobalData’s latest report “UK Easter Intentions 2024,” reveals that, in addition to a more optimistic forecast for Easter spending, the proportion of consumers planning to purchase at least one item this year has increased by 6.8 percentage points to 69.0% since 2023. This marks the highest level of intended consumer participation in three years.
Eleanor Simpson-Gould, Senior Retail Analyst at GlobalData, comments: “Consumers are showing positive signs that retailers can expect to see a resurgence in spend this year. Intention to purchase Easter gifts for partners and parents has increased 7.0ppts to 43.9% and 5.0ppts to 26.1%, respectively, versus last year, signaling that consumers are feeling less constrained to limit buying Easter gifts for just children.”
Additionally, the proportion of consumers cutting back on spending this Easter because of the cost-of-living crisis has fallen 14.8 percentage points since last year to 50.1%. As such, GlobalData expects grocers to see a heightened demand for food & drink items. This rise in demand is driven by the enduring tradition of spending quality time with family and friends, centered around cooking a special meal or roast for Easter Sunday and engaging in social gatherings to mark the occasion.
Simpson-Gould continues: “While over half of consumers still intend to cut back on spending for the occasion, the average planned spend on food and drink is up 10.2% to £48.15. As intended spend on Easter food & drink has increased this year, consumers are expected to be trading up to premium ranges of beef roasting joints, poultry, and deserts to centrepiece Easter Sunday feasts.”
Grocers should prominently feature new product offerings to attract impulse purchases from customers eager to celebrate the occasion with new options. Nevertheless, quality and value for money will continue to be pivotal factors in purchasing decisions this year and must be clearly demonstrated to entice spend.
Simpson-Gould concludes: “The presence of Easter-themed food and gifts has been prevalent in supermarkets since late December, running concurrently with Valentine's and Mother's Day celebrations. Retailers must be cautious to avoid causing "occasion fatigue" among shoppers, which may negatively impact stock sell through prior to the event.
“With the Easter weekend nearing, grocers must ensure the occasion is front of mind for shoppers. Relocating themed gifts and food & drink to high visibility areas in stores will be critical to clearing remaining stock levels and capturing impulse spend from shoppers.”
Source : GlobalData
Image : Alena Kravchenko / iStockphoto.com / 1134663982
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