How retailers can unwrap the key to festive shopping success

Scottish retailers are busy navigating a challenging yet hopeful festive period, much like a ceilidh dancer manoeuvring around a highland fling. But with Christmas around the corner, they need to be aware of the ever-changing preferences of their customers, who are adopting new shopping behaviours to manage their budgets and find more meaningful gifts.

As we reach peak festive shopping season, here are three key trends that are set to shape this season that retailers can take into the year ahead.

Spending power continues to be low this season, with half of UK shoppers maintaining or reducing their budget compared to last year according to our annual festive shopping survey. It also found that nearly half of UK shoppers are setting strict festive shopping budgets.

Retail expert Stuart Chalmers has been examining gifting trends

To cope with these constraints, we are seeing many turn to thrifty gifting options. One in five UK adults plan to buy second-hand presents from resale platforms like Vinted or Depop, or from charity shops.

Scottish retailers should consider highlighting promotions and discounts to attract budget-conscious shoppers. Emphasising the sustainability and uniqueness of second-hand items can also help make gifts more appealing.

In a significant shift away from traditional material gifts, nearly two-thirds of UK shoppers are considering gifting experiences this festive season. The most popular include entertainment, such as concert or theme park tickets, travel and wellness activities like gym memberships or spa retreats.

Scottish retailers should explore partnerships with experience providers to offer gift cards or packages that include these experiences. Creating a curated selection of experience-based gifts can help meet the growing demand for more thoughtful and unique presents.

Retailers can make the Christmas stocking less disappointing (Picture: Adobe)

Promoting the emotional value and memories that experiences create can resonate with shoppers looking for more meaningful gifts. Retailers can use marketing campaigns to highlight the connection that experiences bring, such as sharing customer testimonials or creating social media content that showcases the excitement of receiving an experience-based gift. This approach can help differentiate offerings and attract a broader customer base.

The overwhelming amount of information and options available is causing 'buyers' block' among UK festive shoppers. This has led weary shoppers turn to gift cards as a convenient option, with over half of Brits receiving one last year. However, there are challenges - 39% of recipients felt disappointed that the giver did not spend enough time to plan a personalised gift, and fewer than half used the total balance. This resulted in an average of £109 per person being left unspent on gift cards last year.

While gift cards provide immediate revenue, retailers need to address the issue of unspent balances to maximise their potential. Incorporating creativity into gift card offerings can make them more appealing, such as using gen AI to suggest personalised products or experiences that match the balance to enhance the gifting experience. Retailers can also streamline the redemption process to ensure recipients are excited to use their gift cards and make the most of them.

These trends are more than just passing fads, they represent a shift towards more thoughtful and budget-friendly shopping habits. Scottish retailers who recognise these changes and prioritise them in the new year will be well positioned to enjoy a successful festive season in future.

Stuart Chalmers, Co-lead Accenture Scotland​