Research from RetailMeNot and the Centre for Retail Research reveals that Brits are set to spend one in £4 online this Christmas, while cross-border sales will account for one in £20 spent in Europe.
Shoppers in the UK appear to be making the most of the strengthening Pound, with research commissioned by RetailMeNot, the world’s largest marketplace for digital offers and operator of VoucherCodes.co.uk, predicting a 25.6% increase in online cross-border sales this Christmas – and a total online spend of £659 million with overseas retailers.
With a Pound now buying 1.42 Euros (as of 2nd December), RetailMeNot’s research suggests that Brits are stretching budgets by bagging bargains overseas, while growing desire for unique, locally-made and artisanal foods, gifts and clothing is helping to drive online cross-border sales overall.
The international study, which combines interviews with over 450 retailers and 3,000 shoppers across nine countries, and was conducted by the Centre for Retail Research, reveals that cross-border sales across Europe are set to account for one in £20 (5.1%) spent online this Christmas, with the Netherlands leading the trend, with cross-border sales accounting for 15.2% of all online sales.
Giulio Montemagno, SVP & GM International, RetailMeNot, said: “With Brits spending one in four pounds online this Christmas, and a growing number buying from retailers overseas, shoppers are sending a clear message to retailers about how they want to shop and the experience that they expect. These changing consumer expectations are one of the main drivers for change in retail today, and they provide further confirmation that consumers have no qualms about shopping online, in-store, on mobile, or even from a retailer overseas.
Shoppers are simply looking for the best experience and the best price, provided in a way which suits them best at that moment in time. In recognition of this, retailers must adapt if they are to thrive or risk falling by the way side as shoppers vote with their feet.”
| Online Cross-border trade 2014-2015 | |||||
| (financial totals in millions) | |||||
| 2014 | 2015 | Increase 2014-2015 | % Cross Border 2014* | % Cross Border 2015* | |
| UK | £525 | £659 | 25.60% | 3.10% | 3.30% |
| France | £272 | £344 | 26.40% | 3.80% | 4.10% |
| Germany | £752 | £932 | 23.90% | 7.40% | 7.80% |
| Italy | £74 | £109 | 48.30% | 4.30% | 4.60% |
| Spain | £52 | £82 | 56.50% | 3.40% | 3.70% |
| Netherlands | £164 | £206 | 25.80% | 14.50% | 15.20% |
| Belgium | £60 | £79 | 31.00% | 8.50% | 8.00% |
| Total | £1,899 | £2,411 | 27.00% | 4.80% | 5.10% |
| U.S. | £1,633 | £2,113 | 29.40% | 2.30% | 2.40% |
| Canada | £115 | £138 | 19.90% | 7.90% | 7.80% |
* as a percentage of national online sales
UK leads Europe with the highest average household spend this Christmas
RetailMeNot’s research reveals that the UK is leading the rest of Europe with the highest growth in Christmas spending this year. Shoppers in the UK are set to exceed £76 billion on Christmas gifts and other items this year, with the average UK household spending £792.86, just £7 less than households in the US.
| Christmas Spending Per Household 2015 | |||||
| Gifts | Food& Drink | Holiday travel | Decorations | Totals | |
| UK | £472.54 | £213.28 | £81.66 | £25.38 | £792.86 |
| France | £263.67 | £144.17 | £42.78 | £14.42 | £465.04 |
| Germany | £326.62 | £189.49 | £45.32 | £27.07 | £588.50 |
| Italy | £201.79 | £126.45 | £29.47 | £15.28 | £372.99 |
| Spain | £176.16 | £121.63 | £20.16 | £12.55 | £330.50 |
| Netherlands | £205.50 | £140.90 | £29.59 | £13.23 | £389.22 |
| Belgium | £291.58 | £162.76 | £29.46 | £15.48 | £499.28 |
| Average | £293.48 | £162.91 | £44.11 | £19.58 | £520.08 |
| US | £450.33 | £189.58 | £127.98 | £31.99 | £799.88 |
| Canada | £367.93 | £173.50 | £103.29 | £30.38 | £675.10 |
Brits tipped to spend one in four pounds online this Christmas
Buoyed by online shopping events such as Black Friday, and an increase in online shopping overall, Brits are set to spend £18.57 billion online on gifts and other items this Christmas. This is an 11.6% increase on spend in 2014 and will see online retailers account for a quarter (24.4%) of all retail sales.
Across Europe, Spain appears to have the fastest-growing e-commerce market, with an increase of 41.8% year-on-year, closely followed by Italy with 38.1%. However, both markets remain relatively small compared to the size of online sales in the UK, Germany, and the US.
| Christmas Spending Online, Percentages and Values
(financial figures are in billions [bn]) |
|||||
| % online | value online | ||||
| 2014 | 2015 | 2014 | 2015 | change | |
| UK | 22.4% | 24.4% | £16.64 | £18.57 | 11.6% |
| France | 13.0% | 14.7% | £7.14 | £8.19 | 14.7% |
| Germany | 16.5% | 18.9% | £10.11 | £11.84 | 17.1% |
| Italy | 4.8% | 6.6% | £1.71 | £2.36 | 38.1% |
| Spain | 7.4% | 10.2% | £1.55 | £2.21 | 41.8% |
| Netherlands | 10.5% | 11.8% | £1.12 | £1.28 | 14.4% |
| Belgium | 8.7% | 10.5% | £0.73 | £0.89 | 22.1% |
| Totals | 11.9% | 13.9% | £38.99 | £45.33 | 16.3% |
| U.S. | 18.8% | 20.9% | £70.40 | £80.60 | 14.5% |
| Canada | 4.9% | 5.8% | £1.45 | £1.76 | 20.9% |