UK convenience stores will experience a successful Christmas as rising fuel costs encourage consumers to shop locally.
That is one of the key findings of Deloitte’s 2008 Christmas Retail Survey.
It reports nearly half, 48%, of the population plan to shop more locally for gifts this Christmas due to the increasing cost of fuel.
The older and less affluent are driving this, it says, as the historically high cost of fuel is putting significant strain on household budgets.
Deloitte’s study shows a growing proportion of the population plan to do most of their Christmas food shopping at small local and independent stores too. Thirty per cent of the population plans to use this channel, up from 20% in 2006.
However, supermarkets will be the key beneficiaries this Christmas, says Deloitte. It found 79% of the population plan to do most of their Christmas food shopping at supermarkets.
In addition, consumers show signs of trading down and claim they will discard high-end channels. Luxury stores, farmers’ markets and variety stores will lose out as a result, says Deloitte.
Premium brands are also likely to be a casualty as more consumers are planning to buy supermarkets’ brands and value brands at Christmas, Deloitte adds.
Other key findings of the report include:
· 57% of consumers plan to spend the same this Christmas as last year
· Anticipated spend on Christmas gifts, food and socialising is down 7% this year to £655 per head
· Socialising is set to be the hardest hit category with planned spending down 12%
· Consumers are planning to shop more intensively, visiting the high street, department stores, supermarkets and the internet more than they did in 2007
· Price as a driver shows an increase for the first time in five years but convenience remains the main driver of where people choose to shop this Christmas
· 16-24 year olds are less sensitive to the economic downturn and are more likely to buy a greater number of luxury items than in the past
· Total online Christmas gift and food expenditure this year is expected to increase to an estimated £4.7bn, up 10% on 2007
· Use of credit to pay for Christmas is in decline as more consumers adopt more frugal methods to finance their Christmas expenditure