HOW WE SHOP THE FESTIVE EDIT

HOW WE SHOP THE FESTIVE EDIT 2

HOW WE SHOP THE FESTIVE EDIT FOREWARD Myf Ryan, Director of Marketing, UK and Europe I am delighted to introduce How We Shop: The Festive Edit. Christmas is a key time for retail with revolutionary changes in technology, society and the lives of consumers continuing to impact the sector. Understanding how consumers feel about Christmas - how they celebrate across the holiday period, what they love about Christmas shopping and identifying festive trends - is key to our success as retailers, both now and in years to come. We ve uncovered new qualitative and quantitative findings across five important areas fashion, spending habits, the Christmas calendar, retail experiences and dining trends. This report is part of Westfield s ongoing commitment to creating the best retail destinations in the world, by understanding what consumers want and what retailers will need to do to deliver the best festive experience for everyone. From the future of Christmas entertainment, including augmented reality and festive light-changing apps, this report delves deeper than ever before into the lives and preferences of British shoppers. We explore what Christmas means to the UK, from what time the nation creeps out of bed on Christmas morning, to what we re now serving with the turkey. Ketchup anyone? The findings are surprising, funny, fascinating and testimony to Westfield s position at the forefront of retail research. I hope this report will be stimulating and thought-provoking for consumers and the retail industry alike, and for everyone with an interest in how we celebrate and shop at Christmas the most wonderful time of the year. 2 3

INTRODUCTION The run-up to Christmas is the most important time of the year for both retailers and customers. It s defined by key trends of the season, well-loved traditions and by the varying needs of shoppers, depending on their ages, locations and budgets. In the Festive Edit, Westfield fuses its grasp of the key factors influencing shopper behaviour, human needs and social activities with an in-depth exploration of what s coming next, and how our relationship with Christmas shopping and events is evolving. Key findings show that 58% prefer to do their Christmas shopping alone, and 71% buy their presents in sales while 55% have an advent calendar, and almost half (48%) will buy the perfect present regardless of price. Brits love Christmas including the classic festive music, decorations and the delicious food. The UK feels most Christmassy when putting up and decorating the Christmas tree (44%). Over the next five chapter Westfield reveals how we shop at this celebratory time of year, including when we re partying, how we spend Christmas Eve, what we re eating on Christmas Day and how early we re drinking! 4

SPENDING HABITS Even at Christmas, the UK population loves a good bargain, with 71% keen to save money on festive purchases. Most shoppers agree that there are more pre-christmas sales than there used to be, and are keen to take advantage. The majority of shoppers keep a sharp eye on the gift budget (70%), 56% stick to a strict shopping budget per gift recipient, and Black Friday is increasingly popular. A huge 13.44 million of us buy treats for ourselves frequently when Christmas shopping, with 18-29s the age group most likely to self-gift on every trip (41%). Boxing Day is the best treat day for another 41% of Brits, who use the start of the sales to shop for themselves. But a frugal 71% are very budgetconscious and over half (56%) have a strict spending limit per person. Despite that, almost half (48%) will blow the budget to bag the perfect present, and most pet owners also buy gifts for their animals 17.26 million people will get them a present, over a third get them special Christmas food, and more than a tenth of Brits (13%) buy their pet an advent calendar. The UK spend on pets at Christmas is a staggering 191.4m. And while the average spend on pets is 11.73, Central Londoners are most likely to splash out, forking out over 26 on pet presents, compared to an average 6-10 in the North and Midlands. At an average of 11.73 spend this means we spend 202,459,800 as a country on our animals! Brits are getting better at giving homemade gifts, too. While 50% of the over-50s have never given or received a home-made present, 33% of Millennials have done both. Most hand-made gifts are food (50%) or art, while over a third give something the kids have made, almost a third only ever buy sustainable gifts and 26% donate unwanted presents to charity shops. A frugally-minded 66% of us have re-gifted unused presents, too, with women more likely to recycle a gift (25% compared to 19% of men). And while Brits still like to save money, 49% of the nation believes that January sales aren t as important as they used to be, because sales now start earlier, in December. THE UK POPULATION LOVES A GOOD BARGAIN, WITH 71% KEEN TO SAVE MONEY ON FESTIVE PURCHASES OPINION IS DIVIDED ON THE RECENT CUSTOM OF BLACK FRIDAY WHEN STORES DISCOUNT BEFORE CHRISTMAS, WITH 32% OVERALL BUYING THEIR GIFTS THEN, AND 42% OF UNDER 30s LOVING THE IDEA, WHILE ONLY 15% OF OVER 50s ARE INTERESTED 7

SPENDING HABITS AT A GLANCE 71% OF SHOPPERS LOOK FOR PRE-CHRISTMAS BARGAINS 32% SHOP ON BLACK FRIDAY 56% OF BRITS HAVE STRICT BUDGETS PER PERSON, BUT 48% ARE HAPPY TO BLOW THE BUDGET FOR THE PERFECT GIFT 31% OF WOMEN HAVE GIVEN HOME-MADE GIFTS 21% OF UNSATISFIED BRITS REGULARLY REGIFT PRESENTS 13,440,000 PEOPLE TREAT THEMSELVES WHILST PRESENT SHOPPING FOR OTHER PEOPLE OVER HALF PREFER SALES SHOPPING IN PHYSICAL STORES 8 9

SPENDING HABITS PETS 62% BUY GIFTS FOR PETS 16,320,000 PEOPLE IN THE UK BUY CHRISTMAS PRESENTS FOR THEIR PETS CENTRAL LONDONERS SPEND MOST AT AN AVERAGE OF 11.73 SPEND THIS MEANS WE SPEND 202,459,800 AS A COUNTRY ON OUR ANIMALS 10 11

THE CHRISTMAS CALENDAR Christmas trends change year by year, but one thing stays the same Brits still agree that the most Christmassy moment is putting up the tree (44%). The Christmas countdown starts early for some, with 30-39s most likely to start buying gifts in September or earlier (26%), and 17% of women getting a head start before September (while only 8% of men do the same.) Most of us start shopping in November (33%), with a fifth leaving it till December. The most popular days to start shopping are the 1st of November and the 1st of December. Feeling the pressure, 44% of 18-40s plan to start shopping earlier than last year though 7.68 million Brits go shopping on Christmas Eve. Over half of Brits have an advent calendar (53%), a huge 70% of under 30s insist on one, and for over three quarters, it really has to be chocolate 19.2 million chocolate calendars are bought every year, outnumbering traditional calendars 3:1. An excitable 57% of Northerners have a calendar, spending an average 9.62, against just 50% ( 10.96) in the south and only 45% in London. (average cost 13.61.) There s also a gender split, with 60% of women enjoying opening the doors each day, compared to 45% of men. The younger, foodie-minded generation also wants gourmet treats in the countdown to Christmas (24%) while 26% of women want to open their advent calendar doors to find an alcoholic tipple but only 15% of men ae interested in a boozy calendar. Luxury advent calendars are on the rise, too, as 2.9million Brits are willing to spend over 100 on their dream advent calendar, to countdown the season in style. Other triggers for feeling Christmassy are the local lights going up (24%), and hearing the first Christmas song on the radio (22%). Most people (88%) have Christmas Eve off work, and spend it watching festive films (44%) the most popular movie is Home Alone (12% overall), followed by The Snowman, but over-50s prefer It s a Wonderful Life. Other Christmas Eve pastimes include wrapping presents (37%) and preparing Christmas dinner (30%), while almost a fifth head to the pub. In fact, Brits are now twice as likely to go to the pub on Christmas Eve than go to church! 44% FEEL MOST CHRISTMASSY PUTTING THE TREE UP 88% HAVE CHRISTMAS EVE OFF WORK 12 13

THE CHRISTMAS CALENDAR AT A GLANCE 19.2 MILLION CHOCOLATE CALENDARS ARE PURCHASED EACH YEAR, OUTNUMBERING TRADITIONAL ADVENT CALENDARS 3:1 WOMEN START PREPARING MUCH EARLIER THAN MEN FOR CHRISTMAS, 17% OF WOMEN START SHOPPING BEFORE SEPTEMBER AGAINST JUST 8% OF MEN A THIRD START SHOPPING IN NOVEMBER. LONDONERS LEAVE CHRISTMAS SHOPPING LATER THAN THE REST OF BRITAIN THE YOUNGER FOODIE GENERATION WANT GOURMET TREATS IN THE COUNTDOWN TO CHRISTMAS (24%) 1st NOVEMBER IS WHEN THE MOST OF THE UK STARTS ITS CHRISTMAS SHOPPING BRITS ARE TWICE AS LIKELY TO GO TO THE PUB ON CHRISTMAS EVE THAN GO TO CHURCH 7,680,000 BRITS GO SHOPPING ON CHRISTMAS EVE THE AMOUNT SPENT ON ADVENT CALENDARS INCREASES AS YOU MOVE DOWN THE COUNTRY NORTH - 9.62 MID - 10.18 SOUTH - 10.96, LONDON - 13.61 PERHAPS BECAUSE LUXURY CALENDARS ARE MORE READILY AVAILABLE THERE! LUXE ADVENT CALENDARS ARE ON THE RISE AS 2.9MILLION BRITS ARE WILLING TO SPEND OVER 100 ON THEIR DREAM ADVENT CALENDAR OVER HALF STAY HOME ON CHRISTMAS DAY 60% OF WOMEN ENJOY OPENING THE DOORS EACH DAY AGAINST JUST 45% OF MEN 14 15

THE CHRISTMAS CALENDAR CHRISTMAS DAY AT A GLANCE THE CHRISTMAS CALENDAR CHRISTMAS DAY TIMELINE ON THE BIG DAY, OVER HALF OF BRITS STAY HOME (65% OF OVER 50s), BUT 11 MILLION PEOPLE (23%) TRAVEL TO SPEND THEIR CHRISTMAS WITH FRIENDS AND FAMILY 07:43AM WAKE UP 08:54AM BREAKFAST AROUND BREAKFAST OPENING PRESENTS THE AVERAGE WAKE-UP TIME IS 7.43AM, THOUGH LAZY LONDONERS RISE AROUND 8, AND THE MAJORITY EXCHANGE THE BIG PRESENTS AT BREAKFAST TIME WHILE AN EAGER 43% OF NORTHERNERS RIP THEIR GIFTS OPEN BEFORE BREAKFAST. LESS THAN A FIFTH (17%) WAIT TILL AFTER LUNCH LUNCHTIME FIRST DRINK TWO THIRDS (66%) PREFER TO STAY PUT BETWEEN CHRISTMAS AND NEW YEAR, WITH OVER HALF WATCHING MOVIES, 38% SEEING FRIENDS AND 24% SHOPPING. JUST 20% ARE AT WORK. MAYBE THAT S WHY 45% ARE RELAXED 39% ARE HAPPY 11% ARE STRESED #*# *##! LUNCHTIME FIRST CHRISTMAS DAY ARGUMENT 02:30PM CHRISTMAS LUNCH 03:00PM QUEENS SPEECH THE AVERAGE TIME TO SIT DOWN FOR CHRISTMAS DINNER IS 2.30PM, AND A QUARTER OF US WILL POUR AN ALCOHOLIC DRINK BEFORE LUNCH, THOUGH 17% (8.16MILLION BRITS) DON T DRINK AT ALL ON CHRISTMAS DAY A PATRIOTIC 37% WILL BE TUNING INTO THE QUEEN S SPEECH LATE AFTERNOON MOVIE TIME 17 16 17

THE RETAIL EXPERIENCE It s no longer the case that online shopping is winning the retail race: at Christmas, crowds are drawn to shopping centres and high streets, thanks to sparkling lights and festive food. Over half (55%) go Christmas shopping for the overall experience, excited by the lights (49%), the festive food on offer (47%) and seeing the decorations (40%) and a fifth of Brits adore it, voting it 10/10 for enjoyment. Overall, women are bigger fans than men and while a significant majority of 18-39s rate it as enjoyable, only around half of over 50s like the experience. Almost half of shoppers (49%) go to see the Christmas lights, and 47% love the festive food on offer. A risk-loving 9.12 million Brits leave Christmas shopping to the last minute and shockingly a fifth (19%) leave it till Christmas Eve. An independent-minded 58% much prefer to shop alone, un-hassled. A fifth of shoppers love the festive grottoes and carol singing, 40% like to see the decorated tree, and another 39% genuinely enjoy the festive music in the stores. Most shoppers prefer a traditional experience, but 29% of 30-somethings would be interested in seeing appcontrolled Christmas lights and 30% would be keen to try an augmented reality festive experience, particularly the 30-39 year olds, who have younger children. A significant 50% would be interested in a more immersive advent calendar experience, too, where customers can open doors via an app, or enjoy daily gifts such as alcohol or beauty products. Among the over 50s, though, 40% aren t interested in technology innovations, and would prefer to keep things as they are. HOWEVER, TO MAKE CHRISTMAS SHOPPING EVEN EASIER ALMOST 40% WOULD LIKE NO-QUEUE EXPRESS TILLS, 42% WOULD CONSIDER USING A GIFT-WRAPPING SERVICE FOR THEIR PURCHASES, AND 27% WOULD LIKE FESTIVE LESSONS IN HOW TO STUFF A TURKEY. 55% GO CHRISTMAS SHOPPING FOR THE OVERALL EXPERIENCE, AND A FIFTH OF BRITS ADORE IT 18 19

THE RETAIL EXPERIENCE AT A GLANCE 55% LIKE CHRISTMAS SHOPPING FOR THE OVERALL EXPERIENCE 29% WOULD LOVE AN APP TO CONTROL FESTIVE LIGHTS 9,120,000 PEOPLE LEAVE CHRISTMAS SHOPPING UNTIL THE LAST MINUTE 58% PREFER CHRISTMAS SHOPPING ALONE 38% WOULD LIKE NO-QUEUE TILLS ALMOST HALF LOVE TO SEE SHOPS CHRISTMAS LIGHTS 20 21

SEASONAL STYLE Buying something new to wear for the Christmas party season, whether that s a string of glittering parties or dinner with the family, is key for most shoppers. A significant 77% of women will buy a new item of clothing over the festive period, compared to just 61% of men. Almost 70% of Brits plan to buy something new to wear, with two thirds of women (66%) looking for a new dress, and half wanting new shoes (though less than a third want high heels). The traditional Little Black Dress is still top for nearly half of British women (42%), but a fashionconscious 55% are keen to showcase this season s sequin dresses or accessorise with this season s sparkle jewellery, handbag or shoes. A high-spending 6% of 18-29 year olds will buy nine or ten new items this season. For men, a smart shirt is this season s must-buy (35%), with many also shopping for new trousers and shoes, and almost a fifth (18%) of men under 30 keen to show off a new watch. A cosiness-craving 35% of men are also planning to pick up a new knitted jumper, and a fashionable 12% are after a statement shirt to go out on the town. There are regional differences, too Northern men want new trousers most of all, Midlands men want shirts, and Southerners want jumpers. For Northern women, a party dress is most important, while in the Midlands, it s the shoes that come top. Women are more interested in buying a whole new outfit with 29% splashing out, compared to just 19% of men. Londoners are also likely to buy a full look, on average buying three new items of clothing. The average spend for just one item is 82 in the capital, ( 67 elsewhere) although a high-rolling 22% of Brits will spend over 100. Hiring an outfit is increasingly popular, too, particularly for Londoners, with a full quarter hiring an item over Christmas, while 27% of Brits would consider it (30% in London). For 60% the main reason for hiring is because it s needed for a one-off event, and the average spend is 40-69 for clothing hire. A Christmas party is the most likely trigger for a new outfit nobody wants to be seen on the dancefloor in last year s items, with 24% investing in a full top to toe look. The under 30s are most likely to buy a complete outfit (31%). There are potential savings to be made by hiring an outfit, with a budget-conscious 27% happy to have a one night stand with their frock or suit. People aged between 18-39 are most likely to spend on grooming products for the festive season, with 28% of under 30s forking out on cosmetics and pampering products to look their best. IT S NOT ALL PARTYING THOUGH A SENSIBLE 12.5m WOMEN HAVE THEIR EYE ON NEW PYJAMAS FOR THE FESTIVE SEASON, AND ONLY 41% WILL ACTUALLY ATTEND A NEW YEAR PARTY. 23

ONLY 41% OF BRITS GO OUT TO A NEW YEAR S PARTY SEASONAL STYLE AT A GLANCE THE AVERAGE SPEND PER OUTFIT IS 67 BUT IN CENTRAL LONDON IT S 91 68% WILL BUY A NEW ITEM TO WEAR THIS FESTIVE SEASON WOMEN IN THE NORTH ARE MORE LIKELY TO SAY THEIR MUST HAVE ITEM ARE PYJAMAS 33% NORTHERNERS ARE MOST LIKELY TO BUY NEW PARTY CLOTHES MA X SPEND PER ITEM NORTH: 53 MID AREA: 42 SOUTH: 47 77% OF WOMEN WILL BY A NEW ITEM OF CLOTHING OVER THE FESTIVE PERIOD AGAINST JUST 61% OF MEN LONDONERS SPEND THE MOST, WITH AN AVERAGE 3 ITEMS 00% SMART SHIRTS ARE MENS MOST POPULAR MUST-HAVE ITEM UNDER 30s WILL SPEND THE MOST ON BEAUTY 00% A PARTY DRESS IS THE MOST POPULAR MUST- HAVE ITEM FOR WOMEN LONDONERS ARE THE MOST LIKELY TO SPLASH OUT, ON AVERAGE BUYING THREE NEW ITEMS OF CLOTHING. THE MAXIMUM SPEND FOR JUST ONE ITEM IS 82 IN THE CAPITAL, ( 67 ELSEWHERE) ALTHOUGH A HIGH- ROLLING 25% WILL SPEND OVER 100. 25

SEASONAL STYLE RENTAL MARKET UK POPULATION WILL RENT 20 MILLION GARMENTS ACROSS THE CHRISTMAS PERIOD WITH PEOPLE RENTING TWO ITEMS ON AVERAGE 27% WOULD HIRE AN OUTFIT FOR A PARTY 61% OF PEOPLE THAT RENT ITEMS BECAUSE THEY ONLY WANT TO WEAR THEM ONCE THOSE WHO WOULD POTENTIALLY HIRE AN OUTFIT (44% OF THE UK, OR 21.12M PEOPLE) WOULD BE WILLING TO SPEND 59.64 AT 59.64 PER OUTFIT, THIS EQUATES TO A MAXIMUM POTENTIAL SPEND OF 85,900,000 ON OUTFIT HIRE STYLE TRIAL Outfit hire is increasingly popular, with 20 million items rented across the season, and 60% of Brits willing to consider it for a special occasion. In light of this rising trend, Westfield is opening the first rental standalone pop up store, Style Trial, where visitors can come and rent the perfect outfit for the Christmas party season. From Mary Katrantzou to Marks & Spencer, there are a range of designer and high-street garments available. All proceeds from the store are going to Save the Children. MEN ( 66.55) ARE WILLING TO SPEND MORE ON HIRE THAN WOMEN ( 51.07) 26 27

DINING TRENDS Food at Christmas is about more than just turkey and mince pies. On Christmas Day, while almost a fifth pile into a full English breakfast, an indulgent minority (10%) eat chocolate and drink Bucks Fizz, and Southerners are most likely have smoked salmon and scrambled eggs. (18% for eggs, vs 13% of Northerners, and 11% for salmon compared to 6%)though boringly, most 12.48 million have toast or cereal, to leave room for lunch. A notable 13% have no breakfast at all, to leave room for an enormous lunch. And when it comes to drinking at breakfast time, early starts with excited children mean parents are twice as likely to reach for fizz on Christmas day morning than those without kids. (14% vs 7%) Nevertheless, 4.8million Brits will enjoy a traditional Bucks Fizz with Breakfast. Most people don t eat out when it comes to Christmas dinner just 2% will head to a pub or restaurant, (59% have only ever eaten dinner at home), and women do most of the food shopping though men claim it s a shared joy. We still like to shop for food at the supermarket, not online and the average Brit eats 2.4 Christmas dinners during the season, adding up to 115.2 million Christmas dinners consumed in the UK. 53% OF WOMEN SAY THEY DO THE BIG FOOD SHOP Christmas dinners must contain pigs in blankets, the most popular trimming in Britain, although under-30s and Londoners prefer Yorkshire pudding. Sage and onion stuffing is loved by the over 50s (30%) but only enjoyed by 19% of under- 30s, while 59% demand roast potatoes, 35% want sprouts, and gravy roundly beats cranberry sauce (50% vs 17%). Surprisingly, a routine-loving 5% want ketchup, even with Christmas dinner. Nearly half overall would choose turkey for the roast, but only 38% of Millennials like it, preferring chicken or beef. Christmas pudding is still a favourite for 24%, followed by cheesecake but Millennials prefer a chocolate yule log. Over half of Brits like to cook their own Christmas dinner and given the chance, would turn down a private chef only a fifth would like dinner cooked for them, though that shoots up to 44% amongst over-stretched 30s-39s. Just 16% would have it delivered ready-made Brits like to be in charge of their own Christmas dinner. The average UK Christmas dinner costs 106.64, and 18s-29s spend more than over 50s ( 131.88 vs just 85.87). An extravagant 5% of North Londoners, however spend over 300 on the festive meal. FOOD SHOPPING IS A FRAUGHT AREA 43% OF MEN SAY IT S A SHARED JOB AND ONLY 35% OF MILLENNIALS DO THE FESTIVE FOOD SHOPPING THEY RE STILL LETTING THE PARENTS (55% OF OVER 50s) PROVIDE THE CHRISTMAS GOODS. CHRISTMAS PUDDING IS THE NATION S FAVOURITE FESTIVE DESSERT THE AVERAGE UK CHRISTMAS DINNER COSTS 106.64 28 29

DINING TRENDS THE NATION S FAVOURITE CHRISTMAS DINNER DINING TRENDS AT A GLANCE PIGS IN BLANKETS 34% PEAS 25% PARSNIPS 32% BRUSSEL SPROUTS 35% BROCCOLI 24% CARROTS 44% TURKEY 45% SAGE & ONION STUFFING 25% ROAST POTATOES 70% YORKSHIRE PUDDING 29% 59% WON T GO OUT ON CHRISTMAS DAY 9.6m GLASSES OF FIZZ ARE DRUNK AT BREAKFAST BRITAIN EATS 115,200,000 CHRISTMAS DINNERS EACH YEAR TWICE AS MUCH FOOD SHOPPING IS DONE IN THE SUPERMARKET AS ONLINE GRAVY ROUNDLY BEATS CRANBERRY SAUCE (50% vs 17%) CHRISTMAS PUDDING IS THE NATION S FAVOURITE FESTIVE DESSERT 24% Chef OVER HALF WANT TO COOK THEIR OWN CHRISTMAS DINNER 19% EAT A FULL ENGLISH BREAKFAST ON CHRISTMAS DAY 30 31

FINAL WORD 77% OF WOMEN WILL BUY A NEW ITEM OF CLOTHING OVER CHRISTMAS 6% OF 18-29 YEAR OLDS WILL BUY NINE OR TEN NEW ITEMS OVER THE FESTIVE SEASON 29% OF WOMEN AND 19% OF MEN WILL BUY A WHOLE NEW OUTFIT 9.12m BRITS LEAVE CHRISTMAS SHOPPING TILL THE LAST MINUTE 13.44m TREAT THEMSELVES TO A GIFT WHEN CHRISTMAS SHOPPING 56% HAVE A STRICT PRESENT BUDGET 66% HAVE RE-GIFTED PRESENTS 17.26m PEOPLE BUY PRESENTS FOR PETS: THAT S 202,459,800 SPENT ACROSS BRITAIN 57% OF NORTHERNERS HAVE AN ADVENT CALENDAR, BUT JUST 45% OF LONDONERS DO 26% OF WOMEN WANT AN ALCOHOLIC ADVENT CALENDAR 17% OF WOMEN AND JUST 8% OF MEN START CHRISTMAS SHOPPING IN SEPTEMBER NOV 1st IS MOST POPULAR DAY TO START SHOPPING 7.68m GO SHOPPING ON CHRISTMAS EVE 26% OF BRITS EAT TOAST FOR BREAKFAST ON CHRISTMAS DAY 32