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IN EUROPE STATISTA DOSSIERPLUS ON CHRISTMAS SHOPPING IN EUROPE Statista wishes a Merry Christmas

It’s that time of the year again – Christmas!

And consumers in Europe have already decided what they are buying, where they are buying from, and how much they are allocating for their Christmas shopping.

Me and my Team would like to look back on our cooperation in 2019 and thank you very much for the trust you have placed in us. That is why we would like to treat you with a little gift, our DossierPlus Special "Christmas Shopping in Europe".

This Statista DossierPlus provides facts and trends about the Christmas shopping patterns and expectations of consumers in Europe. Wrapped in key macroeconomic indicators and retail trade figures, it offers in-depth coverage of the most essential insights of the season. Table of contents

01 European Christmas overview 03 A tale of two channels

◾ Christmas retail trade in Europe ◾ Online retail in Europe ◾ Champions of Christmas retail ◾ Online Christmas spending

02 The European (Christmas) consumer 04 Christmas comes early: the effect in Europe ◾ The European consumer in the ◾ Black Friday and Cyber Week European economy in Europe ◾ Christmas spending ◾ Black Friday retail sales

2 Statista Festive Facts

United Kingdom 6.8 10 billion million litres of Beer & Christmas beer Christmas ad sold in Systembolaget spend value in 2019 stores during Christmas week in 2018 The Denmark 311 million € 2.9 online revenues during thousand in 2018 farms as of 2019

Spain China 2.8 billion revenues generated from 29 117 Christmas Lotto “El Gordo - The Fatty One” thousand tons thousand tons of produced of Christmas decorations 145 supplied into the EU million chocolate Santas produced in 2018

4 01 European Christmas overview ▪ Christmas retail trade in Europe ▪ Champions of Christmas retail It’s the most wonderful time of the year

And certainly the busiest, at least for shoppers and retailers. The Yet Christmas will always be Christmas, meaning shopping lists so-called Golden Quarter is already in full throttle, Christmas is will always need to be sorted, consumers will always be out in just around the corner, and shopping deadlines are looming full force on the hunt for the season’s best deals for family and closer. From food to consumer goods, electronics to friends, and businesses will roll out their festive strategies to get entertainment, retailers in many categories brace themselves for the best of the spending rush. To put the festive spirit in a the surge of shoppers flocking to high streets and online consumer perspective, this Statista DossierPlus lays out the marketplaces. Consumers themselves get savvy with their Christmas landscape in Europe, tracing developments in retail budgets, wishing for a fine balance between generous giving during the last quarter of the year and offering a snapshot of and smart spending. consumer spending habits and trends.

This Christmas, the expected increase in retail spending in major European countries pales in comparison to the glory of gone by. Forecasts by the Centre for Retail Research (CRR) indicated that in 2019, Christmas retail spending will perform a minuscule 1.2 percent growth, dropping from the previous two years’ record of a 1.8 percent increase. In view of the declining momentum in global economic growth that afflicted major economies throughout 2019, the projections of moderate progress in spending this year do not come as a surprise.

5 Statista Christmas retail most extravagant in the UK and Germany Europe's biggest five economies have the highest Christmas spending numbers

Christmas spending in retail in Europe in 2018, by country (in billion GBP) Christmas brings the biggest joy into the retail sector. The last two months of the 90 year definitely mark a heightened period of 79.72 spending activity in Europe's Christmas 80 retail landscape. Yet it is fair to say that not 68.57 70 every country takes Christmas season shopping as seriously as the United 60.15 60 Kingdom. The country's Christmas retail spending in 2018 exceeded those of Italy, 50 Spain and the Netherlands combined. Germany's retail sector provides another 37.88 40 set of high numbers during this period. With a retail spending just shy of 70 billion 30 Sales in billion GBP in Salesbillion 24.05 British pounds, or a solid 80 billion euros, Germany has the second biggest 20 11.78 Christmas retail business in Europe. 9.04 10

0 United Germany France Italy Spain Netherlands Belgium Kingdom

Note: EU; 2018 Source(s): VoucherCodes.co.uk; CRR; ID 1063481

6 Statista Christmas spending development in Europe since 2017 Christmas spend stalls in the UK, Spain expected to make the biggest leap this Christmas

Expected growth in Christmas spending in retail in selected European countries from 2017 to 2019 The picture is less cheerful when it comes to what Christmas will bring in retail this year. In the coming holiday season, the two 2017 2018 2019 kings of Christmas retail spending, the 3.5% and Germany, are not expected to perform any Christmas 3.0% miracles, with the former stalling at a minuscule 0.8 percent growth. Instead, a 2.5% boost of about two percent is forecasted for 2.0% both Spain and the Netherlands.

1.5%

1.0%

0.5% Percentage growth in growth spendingPercentage 0.0%

Note: EU; 2017 to 2018 Source(s): VoucherCodes.co.uk; CRR; ID 1063395

7 Statista Spotlight: United Kingdom Christmas is serious business in the UK

Christmas evokes the most pleasant of sensations in us: the smell of ginger and spice wafting through Christmas markets, domestic pleasures of cozy evenings spent with loved ones, a bustling time of eating, drinking and generally being merry. Yet more than anything, Christmas is a commercial business, propped up by a number of industries and services, all of which help the commercial wheel turn until the next year.

Retailers in the UK are all too aware of this, as Christmas becomes an arena for major retail brands to mark their name on the season with their Christmas TV adverts. Every year, the UK's biggest retail companies such as John Lewis, Sainsbury's, Tesco and Marks & Spencer battle for winning the Christmas ad race to make the most of the Christmas retail boost, attract a wider range of consumers and generate more sales. Earlier in this year, The Guardian reported that the UK Christmas ad industry reached a staggering value of of 6.8 billion British pounds as of the third quarter of 2019, including TV and online ads.

8 UK retail peaks in

Not surprisingly, November and December see the most retail activity

Retail sales value in million GBPmillionsales in value Retail

Jul 15 Jul Jul16 Jul17 Jul18

Oct 15 Oct 16 Oct 17 Oct 18 Oct 19 Oct

Apr 17 Apr Apr 15 Apr 16 Apr 18 Apr 19 Apr

Jan 19 Jan Jan 15 Jan 15 Jun 16 Jan 16 Jun 17 Jan 17 Jun 18 Jan 18 Jun 19 Jun

Mar Mar 15 Feb 15 Feb 16 Feb Mar16 17 Feb Mar17 18 Feb Mar18 19 Feb Mar19

Dec 16 Dec 18 Sep Dec Dec 14 15 Aug 15 Sep Nov 15 Dec 15 16 Aug 16 Sep Nov 16 17 Aug 17 Sep Nov 17 Dec 17 18 Aug Nov 18 Dec 18 July19 19 Aug 19 Sep

May 15 May 16 May 17 May 18 May 19 May

Note: United Kingdom (Great Britain); December 2014 to October 2019 Source(s): Office for National Statistics (UK); ID 287878

9 Statista UK Christmas retail isn't what it used to be Sales have yet to reach the level of 2016 growth rates

Year-on-year change in retail sales in the United Kingdom (UK) from January 2016 to November 2019 In December 2018, the value of monthly retail sales made up 12.3 percent of total retail sales in that year. Though in itself this 3.0% is an impressive enough figure, this proportion was the lowest the UK had had 2.0% over the past three years. In fact, since 2016, Christmas retail in the UK has not 1.0% had much reason to be merry. As reported jointly by the British Retail Consortium and 0.0% KPMG, the total value of retail sales -1.0% flattened out in the 2018 Christmas season and saw no growth compared to the -2.0% previous year.

-3.0% Percentage change in retail sales in changeretail Percentage -4.0%

-5.0% Mar Jun Sep Nov Dec Mar Jun Sep Nov Dec Mar Jun Sep Nov Dec Mar Jun Sep Nov 16 16 16 16 16 17 17 17 17 17 18 18 18 18 18 19 19 19 19

Note: United Kingdom; January 2016 to November 2019 Source(s): KPMG; British Retail Consortium; ID 535015

10 Statista Not all retail is equal in the eyes of Christmas Food and grocery retail is the clear winner of Christmas spending

Percentage growth in retail sales of food and non-food items during 4th quarter 2016 and 4th quarter 2018 While a greater emphasis is put on exchanging gifts or treating oneself to Q4 2016 Q4 2017 Q4 2018 Christmas sales 4.0% purchases, more than any 3.6% other retail category, food 3.5% and grocery sales get the

biggest boost during the year)

- 3.0% season. In the UK, grocery on - 2.5% retail saw the greatest 2.5% 2.3% growth of the past three 2% years in the last quarter of 2.0% 1.6% 2018. 1.5% 1.5% 1.5% 1.5% 1.4%

1.0%

Percentage growth (year growth Percentage 0.5%

0.0% Total retail Food and grocery retail Non-food retail

Note: United Kingdom; Q4 2016 to Q4 2018 Source(s): GlobalData; ID 789888

11 Statista Spotlight: Germany Christmas done right

The annual development in retail sales during the Christmas trading period establishes Germany as Europe's second-biggest Christmas retail spender. Despite a somewhat stagnant period between 2000 and 2015, recent holiday seasons in Germany started seeing revived sales in retail again. In 2018, Christmas trade constituted 19 percent of all retail taking place during November and December.

One clear advantage that Germany has over the United Kingdom, and many other European countries, is the Christmas markets that light up many German town centers during the period. In a 2014 report, the Centre for Retail Research indicated that Germany was host to over 2.2 thousand Christmas markets, 20 times more than those in Austria and Switzerland combined. Additionally, Germany's Bundesverband Deutscher Schausteller und Marktkaufleute estimated that the contribution of traditional Christmas markets to Germany's Christmas retail turnover was as high as three billion euros.

12 Christmas retail revenues to cross the 100 million euro mark Retail revenue of the Christmas trading period in Germany from 2005 to 2018, with a forecast for 2019

120

102.4 98.3 99.4 100 94.7 90.6 83.5 84.3 85 82.2 81.1 82.7 82.9 80.3 80.5 78.7 80

60

40 Revenue in billion euros in billion Revenue

20

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Note: Germany; 2005 to 2018 Source(s): Statistisches Bundesamt; HDE; ID 1064307

13 Statista Nussknacker cracks Christmas sales Toys continue to be seasonal gifts

Share of Christmas trade in annual sales in selected retail sectors in Germany from 2014 to 2018 A detailed category breakdown of retail sales during the Christmas Sales share trading period shows that a 2018 2016 2014 quarter of all toys in 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Germany are sold during the Christmas season. In Total retail fact, for many other Toys categories such as Household items not mentioned elsewhere ceramic products and Ceramic and glass products glassware as well, the Books impact of Christmas in Consumer electronics purchases was clearly Watches and jewelry discernable. Music instruments and supplies Electrical household appliances Clothing Antiques and antique carpets Cosmetics and body care products Bakery products and confectionery Magazines and newspapers

Note: Germany; 2014 to 2018 Source(s): Statistisches Bundesamt; ID 1067444

14 Statista 02 The European (Christmas) consumer ▪ The European consumer in the European economy ▪ Christmas spending The European consumer in the European economy Consumers wary of overspending

From a retail perspective, the Christmas season does not hold many surprises. Compared to other periods in the calendar year, consumer spending typically increases in what is referred to as the Golden Quarter of retail. What remains uncertain is whether or not consumers will spend more than they did in the previous year. As has been displayed in the first chapter of this report, the robustness of growth in Christmas spending is predicted to vary across countries for 2019. Yet, compared with the actual growth rates of the two previous years, it seems that it will be a mild Christmas as the European consumer stays cautious.

Following the slowed-down economic activity due to global trade turmoils in 2018, the spring edition of the European Economic Forecast Report published by the European Commission predicts that 2019 will provide a flat transition into a relatively stable period beyond. Citing a decline in consumer confidence throughout 2018 and the resulting impulse to save, the commission report forecasts a push in private consumption - but not before 2020.

16 Europe's biggest economies Gross domestic product (GDP) of the leading 10 European countries in 2018

GDP in billion euros 0 500 1000 1500 2000 2500 3000 3500 4000

Germany 3,386

United Kingdom 2,390.19

France 2,348.99

Italy 1,753.95

Spain 1,206.88

Netherlands 772.69

Switzerland 597.31

Poland 496.63

Sweden 467.01

Belgium 450.58

Note: Europe; 2018 Source(s): Eurostat; ID 1078628

17 Statista Consumer confidence is particularly low in the United Kingdom Consumer Confidence Index in a selection of European countries 2017 to 2019

Belgium France Germany Austria Switzerland Netherlands Luxembourg Spain Italy United Kingdom Denmark Sweden 104.0

103.0

102.0

101.0

100.0 Consumer Confidence IndexConfidenceConsumer 99.0

98.0 Jun '17 Sep '17 Dec '17 Mar '18 Jun '18 Sep '18 Dec '18 Mar '19 Jun '19 Sep '19

Note: Europe; June 2017 to September 2019 Source(s): OECD; ID 686252

18 Statista 2019 stable, 2020 to bring a brighter outlook Growth in GDP and private consumption in the EU

Average growth rate of private consumption in the European Union (EU) from 2013 to 2017, with a forecast to 2020 2019 forecasts were not 3.0% 2.4% 2.1% 2% overwhelming 1.6% 1.6% 1.7% 2.0% 1.2% in terms of GDP growth 1.0% -0.1% and private

change 0.0% percentage

Real annualReal consumption -1.0% in the EU. On 2013 2014 2015 2016 2017 2018 2019 2020 both fronts, the outlook for Average growth rate of gross domestic product (GDP) in the European Union (EU) from 2013 to 2017, with a forecast to 2020 2020 was more optimistic. 3.0% 2.5% 2.3% 2% 2% 1.8% 1.6% 2.0% 1.4%

change 1.0%

percentage 0.3% Real annualReal 0.0% 2013 2014 2015 2016 2017 2018 2019 2020 (1) Note: EU; 2013 to 2017 (2) Note: EU; 2013 to 2017 Source(s): European Commission; ID 1067611 Source(s): European Commission; ID 1070317

19 Statista Household Christmas budget Who is spending how much on what?

During the 2018 Christmas season, the personal finance plans of European consumers were somewhat reflective of the larger European consumption and retail sales trends. Compared to 2018, Christmas shoppers in Europe are not planning to go overboard in 2019. According to the 2019 edition of Deloitte's Annual Christmas Survey, the average Christmas budget of European consumers is estimated to go from the previous year's 446 euros to 461 euros in 2019. Consumers in the United Kingdom, Spain, Italy and Germany were the biggest spenders of the previous year, allocating much higher Christmas budgets than the European average. The picture remains similar this Christmas as well.

On average, the European consumer expected to spend more money on buying presents than food items this Christmas. Other surveys conducted with consumers from Northern Europe also confirmed that, true homebodies that they are, European consumers planned to allocate only a meagre share for travel or going out.

20 More on giving than feasting Christmas budget composition in Europe from 2018 to 2019, by category

Gifts Food and Drink Socializing Travel 250

200 189 193

150 127 131

100 81 86

49 51

Average consumer spend in eurosspendconsumer in Average 50

0 2018 2019

Note: Europe; September 16, 2019 to October 11, 2019; 18-65 years; 7,190 Respondents Source(s): Deloitte; ID 1064151

21 Statista Europe's Christmas budget Average budget for Christmas celebrations in Europe 2019, by country

Budget estimations of Average estimated spend on Christmas celebrations in selected countries in Europe in 2019 (in euros) consumers in four of the biggest economies in Europe - Germany, the Average expenditure in euros UK, Spain and Italy - 0 100 200 300 400 500 600 700 deemed these countries UK 639 the most generous this Christmas season. In Spain 554 comparison, Dutch consumers expected to Italy 549 spend below the European average of 460 euros for Germany 488 their holiday expenses. European average 460

Portugal 387

Russia 367

Poland 352

Netherlands 341

Note: Europe; September 16, 2019 to October 11, 2019; 18-65 years; 7,190 Respondents Source(s): Deloitte; ID 475509

22 Statista Europe's biggest Christmas spender British consumers push the boat out for festive spending

Consumer spending during the Christmas period in the United Kingdom (UK) in 2018 and 2019, by category (in GBP) In 2018, Christmas spending per person in the UK was estimated to be Gifts Food and Drink Socializing Travel 567 British pounds (or 639 350 euros), the largest Christmas budget in 294 299 300 , upping the previous year by 1.3 250 percent.

200

146 150 143

100 68 63 62 Average expenditureAverage in GBP 51 50

0 2018 2019*

Note: United Kingdom; September 16, 2019 to October 11, 2019; 18 - 65 years; 803 Respondents; UK adults Source(s): Deloitte; ID 786555

23 Statista Italy and Spain The Mediterranean Christmas budget

Estimated Christmas shopping expenditure in Italy in 2019, by category (in euros) After the UK, Spain and 250 221 Italy are 200 estimated to 140 have the two 150 116 next biggest 100 72 Christmas 50 budgets this

Expenditure in euros in Expenditure 0 year. Gifts Food Socializing Traveling

Estimated Christmas holiday expenditure in Spain in 2019, by category (in euros)

250 238 200 173 150 79 100 64 50

Expenditure in euros in Expenditure 0 Gifts Food Socializing Travel (1) Note: Italy; September 16 to October 11, 2019; 14-65 years; 976 Respondents (2) Note: Spain; September 16 to October 11, 2019; 18-65 years; 1,107 Respondents Source(s): Deloitte; ID 646476 Source(s): Deloitte; ID 1067500

24 Statista Germany and the Netherlands Average Christmas budget estimations

Estimated Christmas spending in Germany in 2019, by category (in euros) Germany's Christmas 250 217 trading period 200 displays high flying 150 116 103 numbers, but 100 51 personal 50 budget

Expenditure in euros in Expenditure 0 estimations of Gifts Food Travel Going out consumers placed Estimated holiday season expenditure in the Netherlands in 2019, by category (in euros) Germany behind Italy, 140 122 120 109 Spain and the 100 UK. 78 80 60 40 32 20

Expenditure in euros in Expenditure 0 Gifts Food Travel Socializing (1) Note: Germany; October 2019; 978 Respondents (2) Note: Netherlands; September 16, 2019 to October 11, 2019; 18-65 years; 937 Source(s): Deloitte; ID 1069430 Respondents Source(s): Deloitte; ID 784797

25 Statista Nordics Christmas budget: Denmark Top-5 Christmas expenses in 2018

Christmas expenses in Denmark in 2018, by type Scandinavian consumers' spending habits during the 30.0% Christmas season varied 26% from country to country. 25.0% According the 2018 results of the Christmas Barometer conducted by the Helsinki- 20.0% based digital financial services provider Ferratum Group, Danish consumers 15.0% 14% 14% expected one quarter of 12% their expenses to be on shopping activities.

Share of expensesShareof 10.0%

6% 5.0%

0.0% Shopping Travel abroad Sports and recreation Children's winter Sports events activities

Note: Denmark; December 2018 ; Over 23,000 households from 19 countries Source(s): Ferratum; ID 1072678

26 Statista Nordics Christmas budget: Sweden and Clothes, games, gadgets: top Christmas expenses

Christmas expenses in Sweden in 2019, by type Christmas expenses in Norway in 2019, by type The 2019 results of the 14.0% 13% 18.0% 17% same survey 12% 16.0% 12.0% revealed 11% 14% slightly 14.0% differing 10.0% 9% 9% 12.0% 11% results for 8.0% 10.0% Sweden and Norway. 6.0% 8.0% 7% 6%

6.0% Share of expenses ofShare Share of expensesShareof 4.0% 4.0% 2.0% 2.0% 0.0% 0.0%

(1) Note: Sweden; November 2019; Over 31,000 households from 14 countries; Top 5 (2) Note: Norway; November 2019; Over 31,000 households from 14 countries; Top 5 Source(s): Ferratum; ID 1072697 Source(s): Ferratum; ID 1072691

27 Statista 03 A tale of two channels ▪ Online retail in Europe ▪ Online Christmas spending Christmas is more online than ever E-commerce in Christmas shopping

Online has secured its place in consumers' purchasing habits, including those on the hunt for the best Christmas deals. Last Christmas, European shoppers did not abandon the joys of strolling through physical stores altogether, and left more money in physical stores. Yet, the average amount consumers expected to spend via online channels increased - contrary to their planned offline Christmas budget, which did not display a significant rise from 2017.

Within online shopping, mobile is gaining more traction with consumers, the convenience and ease of use offered by mobile apps being a significant incentive for this. That being said, consumers mix and match, and most of Christmas shopping is done offline, out in the supermarkets, high streets and shopping centres. Consumer expectations from online shopping get more diluted and refined during the holiday season as well, as Christmas shopping is necessarily more personalized and time sensitive.

29 Christmas budget online and offline Average budget in Europe from 2018 to 2019, by channel

Online Offline 300 275 268

250

200

150 128 134

100 Average consumer spend in GBPspendconsumer in Average 50

0 2018 2019

Note: Europe; September 16, 2019 and October 11, 2019; 18-65 years; 7,190 Respondents Source(s): Deloitte; ID 1067428

30 Statista The Big Six of online retail UK plants the flag in online retail in Europe

Online retail sales value in selected European countries from 2016 to 2019 (in billion GBP) Christmas is becoming more online, because retail is too. In Europe, the proportion of online sales in all retail has 2016 2017 2018 2019 already gone up from 4.8 percent to 80 roughly 9 percent between 2012 and 2018. In some mature e-commerce markets like 70 the UK, Germany and France, this share is forecast to go over the 10 percent mark in 60 2019.

50 2019 forecasts for the sales value of online retail indicate impressive numbers across 40 Europe. The Centre for Retail Research estimates a value of between roughly 9 30 billion British pounds in the Netherlands 20 and 76 billion British pounds in the United

Value in billion British pounds. British in billion Value Kingdom. 10

0 UK Germany France Spain Italy Netherlands

Note: Europe; excluding travel, restaurants, tickets, transport. Source(s): CRR; VoucherCodes.co.uk; ID 921453

31 Statista Small steps and big steps: European online retail share outlook Year-on-year increase in online retail sales in selected European countries in 2019

19%

15.9%

10.9% 10.8% 9.9%

Increase in in salesonlineIncrease 5.4% 3.9%

UK Germany France Netherlands Spain Italy European average

Note: Europe; 2018 Source(s): CRR; ID 795571

32 Statista Holiday shopping expectations are online in Europe Italian and Spanish consumers most keen to buy from online marketplaces

Share of consumers planning to buy more from online marketplaces during holiday season in Europe in 2019, by country Consumer data from research conducted by Salesforce Marketing suggested that Italy and 78% Spain showed the most interest in online marketplaces this holiday 62% 61% season. 56% 54% 51% 49%

41% Share of respondentsShareof

Italy Spain France Belgium Nordics UK/ Germany Netherlands

Note: Europe; June 2019; 4,007 Respondents Source(s): Salesforce Research; ID 1066662

33 Statista ... and mobile Less popular than online shopping, but mobile shopping apps are getting there

Share of consumers planning to shop through mobile apps during holiday season in Europe in 2019, by country Online shopping takes many shapes, and mobile, whether in a browser or an 80.0% app, is gaining more 69% traction with consumers. 70.0% 67% For Christmas shoppers as well, mobile apps were an 60.0% 57% attractive option across 53% 53% 49% Europe. 50.0% 46% 46%

40.0%

30.0% Share of respondentsShareof 20.0%

10.0%

0.0% Italy Spain Belgium France Nordics Netherlands UK/Ireland Germany

Note: Europe; June 2019; 4,007 Respondents Source(s): Salesforce Research; ID 1066732

34 Statista High streets: UK's beloved for Christmas shopping Preferred Christmas shopping locations in the UK 2018

Where will you be doing most of your shopping this Christmas? UK shoppers do not love online less, but high street shopping more. At least when it Share of respondents comes to Christmas shopping. While a mix 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% of channels such as mobile apps and retailer websites were not off the table for On the high street 28% UK Christmas shoppers, high streets and shopping centers trumped all other options. In a shopping center 21% In a 2018 consumer survey commissioned by one of the UK's leading retail industry On a retailer's website on a PC 20% publications Retail Week, pure-play marketplaces such as and eBay On a marketplace (such as Amazon or eBay) 15% were revealed to be popular destinations for only 15 percent of Christmas shoppers. At a retail park 8%

On a retailer's website on a mobile phone 6%

Through a retailer's mobile app 2%

At a discount village 2%

Note: United Kingdom; 2018; 2000 Respondents; UK consumers Source(s): Retail Week; Valitor; ID 946863

35 Statista Online brings a breath of fresh air to UK Christmas retail Store sales stall, online charges on in the UK

High street shopping and Online and store-based retail sales during Christmas season in the United Kingdom (UK) from 2017 to 2018 (in billion GBP) spending in physical stores make up the backbone of Christmas retail. Yet, the Online Store-based pace with which online is 60 55.89 keeping up hints at many 54.61 more digital Christmases to come. Between the two 50 Christmases in 2017 and 2018, store-based sales in 40 the UK regressed by 2.3 percent, whereas online 30 sales made a solid 10 25.11 percent progress. 22.8

20 Sales value in billionGBP in value Sales 10

0 2017 2018

Note: United Kingdom; 2017 to 2018 Source(s): CRR; ID 1063630

36 Statista What are UK holiday shoppers buying online and offline? Books and gadgets are the two fixtures on online holiday shopping lists

This Christmas season, Product categories on which holiday shoppers plan spending in the United Kingdom (UK) 2019, by channel online shopping plans of UK consumers favored items such as books and Share of respondents electronics over other retail Offline Online consumption. A consumer 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% survey from Periscope by McKinsey confirmed a Beauty & fragrances common resistance Car associated with otherwise Clothing rampant online shopping: Consumer electronics UK shoppers still planned Furniture to do their household Gift cards shopping for food and Grocery / Beverages groceries mostly offline in Home furnishings the 2019 holiday season. Kitchen appliances Movies / Books /Music Travel Toys Other

Note: United Kingdom; August 2019; 501 Respondents Source(s): Periscope; ID 1074935

37 Statista German shoppers stick to the shops ...but with less loyalty over the years

Do you prefer buying Christmas presents online or at local retailers? Annual Christmas surveys published by Ernst & Preferably at local retailers Preferably online No preference Young reveal that German shoppers' loyalty towards 80.0% 75% 71% physical stores is 70.0% 68% diminishing. Shoppers no longer depend entirely on 60.0% town centres, department 53% stores and supermarkets 50.0% for their Christmas shopping as online 40.0% channels provide better prices, increased variety, 30.0% 26% and availability - important factors that drive the Share of respondentsShareof 20% 20% 21% 20.0% shopping 14% 11% 12% process. 9% 10.0%

0.0% 2015 2016 2017 2018

Note: Germany; October 2015 to 2018; 18 years and older; 1,000 Respondents Source(s): EY; ID 1069252

38 Statista Online is the way to go for consumer electronics purchases Leading product categories that German shoppers prefer to buy online as of 2019

Which Christmas gifts do you prefer buying online rather than at retailer stores? According to Statista's 2019 Holiday Season & Share of respondents survey, German 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% consumers have a clear Consumer electronics (CDs, DVDs, BluRays, etc.) 62% notion of what to purchase Books and e-books 59% from the web rather than the shop. Similar to UK Computer and computer accessories 52% shoppers, German Travel 52% consumers are also most Gift cards 51% open to buying electronics Smartphones, tablets and related accesories 49% online rather than offline. Games, toys, dolls, etc. 43% Household items 39% Clothing, textile, footwear 36% Cosmetics, perfumes, personal care products 33% Jewelry and watches 27% Decoration articles 25% Furniture 21% Food and beverages 8%

Note: Germany; October 16-21, 2019; 18 years and older; 722 Respondents; Bought at least one gift online rather than in store Source(s): Statista Survey; ID 1076721

39 Statista Just browsing Online has a broader function in the shopping journey

Christmas shopping is an equation with multiple variables. Online or offline, Christmas shoppers want to get their Christmas shopping done. Yet, questions abound: what to buy, where to buy, and how much to spare. Help comes from a multitude of sources: TV, out-of-home, physical stores, print and digital media - all race to get the attention of the Christmas shopper.

The unique advantages online channels offer - such as access to a wide network of customer reviews, price comparisons and a greater variety of choice - give digital sources a further edge in the consumers' Christmas shopping quest. But the end result doesn't have to be a purchase. Shoppers browse and buy online or browse online and finalize the shopping experience in store. Either way, online channels inform and shape the decisions shoppers make to an increasing degree.

40 UK shoppers inspired equally by online and in-store Online plays a greater role in researching for Christmas gifts in the UK

Festive season gift inspiration and discovery channels in the United Kingdom (UK) in 2018 Insights from Facebook's 2019 Holiday Study suggest that last Christmas shoppers in the United Kingdom consulted online 80.0% sources and physical stores for ideas and 70% 70% inspirations equally on their holiday 70.0% shopping quest. True multichannel browsers, UK shoppers were more likely to 60.0% utilize online when choosing and purchasing gifts compared to all those 50.0% surveyed across the EMEA region.

40.0%

30.0% 27%

22% Share of respondentsShareof 20.0% 13% 10.0%

0.0% Online In store Print TV Outdoor

Note: United Kingdom; 2018; 18 years and older; 1,501 Respondents Source(s): Facebook; Ipsos; ID 1076500

41 Statista Germany and the Netherlands Inspiration and discovery channels for Christmas purchases

Holiday gift inspiration and discovery channels in Germany in 2018 Holiday gift inspiration and discovery channels in Netherlands in 2018 Physical stores were still relevant 70.0% 70.0% 66% for German 61% consumers 60.0% 60.0% not only when 53% 52% they were 50.0% 50.0% making their Christmas purchases, 40.0% 40.0% but also when they were 30.0% 30.0% 28% looking for gift 24% ideas and

21% Share of respondentsofShare Share of respondentsShareof 20.0% 17% 20.0% inspirations. The same 11% 11% went for Dutch 10.0% 10.0% shoppers.

0.0% 0.0% Online In store Print TV Outdoor Online In store Print TV Outdoor

(1) Note: Germany; 2018; 18 years and older; 1,502 Respondents (2) Note: Netherlands; 2018 ; 18 years and older; 1,500 Respondents Source(s): Facebook; Ipsos; ID 1076522 Source(s): Ipsos; Facebook; ID 1076562

42 Statista Italy and Spain Inspiration and discovery channels for Christmas purchases

Holiday gift inspiration and discovery channels in Italy in 2018 Holiday gift inspiration and discovery channels in Spain in 2018 For shoppers in Italy and Spain, digital 80.0% 80.0% sources 71% 69% carried more 70.0% 70.0% 65% 66% weight than they did for 60.0% 60.0% Dutch and German 50.0% 50.0% consumers.

40.0% 40.0% 30%

30.0% 30.0% Share of respondentsofShare Share of respondentsShareof 19% 20.0% 20.0% 15% 15% 13% 14% 10.0% 10.0%

0.0% 0.0% Online In store Print TV Outdoor Online In store Print TV Outdoor

(1) Note: Italy; 2018; 18 years and older; 1,501 Respondents (2) Note: Spain; 2018; 18 years and older; 1,503 Respondents Source(s): Facebook; Ipsos; ID 1067822 Source(s): Facebook; Ipsos; ID 1076659

43 Statista Denmark and Sweden Inspiration and discovery channels for Christmas purchases

Holiday gift inspiration and discovery channels in Denmark in 2018 Holiday gift inspiration and discovery channels in Sweden in 2018 Among those surveyed in Facebook's 70.0% 60.0% 57% Holiday Study, 52% Sweden was 60.0% 58% 56% 50.0% the only other country (after 50.0% the UK), 40.0% where shoppers 40.0% utilized online 30.0% channels 25% 30.0% more than any other

22% 20.0% Share of respondentsofShare Share of respondentsShareof 16% conventional 20.0% 16% 11% sources. 10.0% 10.0% 8%

0.0% 0.0% Online In store Print TV Outdoor Online In store Print TV Outdoor

(1) Note: Denmark; 2018; 18 years and older; 1,500 Respondents (2) Note: Sweden; 2018; 18 years and older; 1,500 Respondents Source(s): Ipsos; Facebook; ID 1068018 Source(s): Facebook; Ipsos; ID 1076922

44 Statista What does the European Christmas shopper want online? From free delivery to flexible returns: the wish list of online Christmas shoppers

Getting into the mind of the Christmas shopper is a daunting task. Consumer expectations and plans depend on so many things: budget, demographics, time available to the shopper. When online shopping factors into this, beyond common advantages such as convenience and better pricing, other considerations emerge for the Christmas shopper such as supply chain and fulfilment capabilities of retailers. In the recent past, many online retailers learnt their lesson the bitter way: delays in delivery of Christmas purchases pushed consumers to frustration and put the brand image of retailers into jeopardy. To combat this, retailers now define deadlines for holiday purchase orders and offer lax return policies. The courier services and delivery staff of online retailers receive special seasonal reinforcement as well. All to keep the Christmas shopper coming to the online shop.

45 What does the Christmas shopper want online?

Austria Germany UK Access to Home Low customer delivery cost delivery reviews 74% 80% 79%

Italy Netherlands Sweden

Price Access to Fast comparison customer delivery reviews 60% 62% 65%

Norway Denmark

Broad return Fast deadline delivery

75% 78%

47 04 Christmas comes early: the Black Friday effect in Europe ▪ Black Friday and Cyber Week in Europe ▪ Black Friday retail sales Black Friday in Europe Consumers get the most out of Christmas with Black Friday

Christmas comes but once a year, but for shoppers and retailers it comes earlier now. Across Europe, many consumers already begin their Christmas shopping as early as September in a bid to avoid the stress of frenzied crowds on high streets. Thanks to the wild popularization of the most popular U.S. shopping event, Black Friday, in the rest of the world, the holiday shopping season now has an unofficial kickstarter in Europe as well.

Originally an American shopping event that marks the end of Day, Black Friday sees special retailer discounts on a massive scale, online and in brick-and-mortar stores alike. While it has still not caught on on the high street as widely as it has across the Atlantic, European shoppers have by no means been slow to catch up with the frenzy of Black Friday shopping. Today, awareness of and participation in Black Friday and its adjacent sales have increased enough to make them a commonplace presence in the Christmas shopping journey of European consumers.

48 Holiday season starts with excessive shopping in the U.S. Number of people who shopped during the Black Friday weekend in the U.S. in 2017 and 2018, by day

Number of people who shopped Thanksgiving weekend in the U.S. from 2017 to 2018, by day (in millions) The Black Friday craze lasts from Thanksgiving Thursday until the following Monday, or, as retailers like to call it, Cyber 2017 2018 2019 Monday. According to estimates of the 140 National Retail Foundation, the number of individuals who shopped over this five-day 120 115.7116.4114.6 period reached over 300 million in 2018.

100

78.4 75.8 80 71.3 67.9 66.6 68.7 60 39.6 40 32 35 35.2 33 33.3

Number of people in millions of in peopleNumber 20

0 Thursday Black Friday Saturday Sunday Cyber Monday (Thanksgiving) Day

Note: ; October 31 to November 6, 2019; 18 years and older; 7,917 Respondents Source(s): National Retail Federation; Prosper Insights & Analytics; ID 243501

49 Statista Black Friday: a serious business in Europe UK and Germany spend the most over Black Friday

Black Friday may be a U.S. phenomenon, Total value of sales during Black Friday and Cyber Monday in selected European countries in 2018 but European consumers warmed to the with a forecast for 2019 (in million GBP) shopping craze in no time. Unlike the U.S., where brick-and-mortar stores see some of 2018 2019 the most overwhelming images of 9000 consumers racing to grab the top bargains, Black Friday is predominantly an online 8000 affair in Europe. In fact, the DACH region's 7000 own mega sales event, "Black Friday Sale", is dedicated purely to sales offered by 6000 online retailers. This Europeanized version of Black Friday greets shoppers on its 5000 websites with impatient displays of the 4000 countdown to the year's biggest day of flash sales. 3000

Spending in million GBP in million Spending 2000

1000

0 UK Germany France Italy Spain Netherlands Belgium

Note: Europe; 2018 Source(s): VoucherCodes.co.uk; CRR; ID 1075269

50 Statista Black Friday consumer budget in European countries Expected spend per person during Black Friday in selected countries in Europe in 2018

Average spend per person in euros 0 50 100 150 200 250 300 350 400

United Kingdom 346

Ireland 300

Austria 234

Finland 221

Germany 211

Greece 206

Slovakia 203

Italy 185

Portugal 179

Spain 173

Russia 118

Turkey 84

Note: Europe; 2018; 12,000 Respondents Source(s): Picodi; ID 934968

51 Statista Black Friday discount rates in Europe Average discount rate offered by stores during Black Friday in selected European countries in 2018

Average discount rate 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

United Kingdom 63%

Germany 53%

Austria 51%

Switzerland 51%

Spain 47%

Italy 45%

Sweden 45%

Finland 45%

Note: Europe Source(s): Picodi; ID 1067993

52 Statista Trailblazing European retail Spanish shoppers were the most keen to purchase on Black Friday in 2018

In Europe, the most dizzying Black Friday Percentage change in retail sales on Black Friday and Cyber Monday in Europe in 2018, by country in 2018 took place in Spain, where retail sales saw the biggest spike. According to data analyzed by commerce marketing Black Friday Cyber Monday company Criteo, major European countries 401% felt the impact of both Black Friday and 387% Cyber Monday in retail transactions to enormous degrees - varying from an 332% increase of 156 to over 400 percent. 282% 279% 277%

163% 152% 156% 137% 114% 104%

90% Sales transactions growth transactionsSales 54%

Spain Sweden United Netherlands France Switzerland Germany Kingdom

Note: Europe; October 2018 to November 2018; all retail. Source(s): Criteo; ID 1065500

53 Statista Most purchased products on Black Friday Consumer electronics attract the most attention from shoppers

Sales index of most purchased retail products purchased in the EMEA region during Black Friday in 2018, by category The most purchased product categories during Black Friday suggest that 400 373 consumers hunted for 333 350 317 307 bargains on pricier items - 300 and retailers obliged. In 250 2018, Black Friday shoppers 200 spoiled themselves with 141 150 136 consumer electronics and Sales indexSales luxury purchases. 100 50 0

Note: Europe; 2018; all retail. Source(s): Criteo; ID 1067876

54 Statista It's not just tech that has its big day on Black Friday Fashion and luxury sales went through the roof in Spain and the UK

Percentage change in retail sales of fashion and luxury items on Black Friday in Europe in 2018, by country When consumers were not looking to replace their Smart TVs or upgrade to a Retail sales growth new virtual assistant, they 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% 400.0% 450.0% were renewing their wardrobes with fashion Spain 471% and luxury items. In major European countries, the United Kingdom 437% number of transactions in this category saw an Sweden 406% increase of over 200 percent compared to the Netherlands 328% four-week period before Black Friday.

France 290%

Switzerland 243%

Germany 206%

Note: Europe; October 2018 to November 2018; all retail Source(s): Criteo; ID 1059763

55 Statista Black Friday and Christmas: perfect together Consumers drawn to the lure of Black Friday for their Christmas shopping

Unlike in the U.S., there is no definitive date that officially marks the beginning of the holiday season in Europe. Indeed, it is more than likely to see supermarkets stacking festive products against the backdrop of merry tunes annoyingly early in the season. But it is possible to say that with the transformation of Black Friday and Cyber Monday from an American shopping indulgence to a global event, traditional shopping timelines and preferences of European consumers have shifted.

This was true to the degree that, ditching and pre- Christmas sales, consumer surveys showed that UK consumers picked Black Friday as their preferred shopping day. German consumers were partial to Black Friday as well, but not without showing some degree of indifference to any form of shopping event first. A survey conducted by Periscope Solutions by McKinsey found that if Germans chose to participate at all, Black Friday and Cyber Monday overtook more traditional discount opportunities like pre-Christmas sales.

56 Move aside, Christmas sales Black Friday is arguably the most popular retail event in Europe

The period between the Daily sales index in the EMEA region during holiday season in 2018, by event American Thanksgiving weekend and New Years is 400 nothing short of a series of 345 special shopping events. 350 In Europe, Black Friday and Cyber Monday saw 300 the most concentrated retail sales activity by far. 250 Cyber Monday and the 195 freshly-minted shopping 200 event "Singles Day" also triggered greater sales 150 143 activity. 120

Daily Daily salesindex value 106 100 85 71

50

0 Black Friday Cyber Monday Singles Day Boxing Day Christmas New Years

Note: Europe; 2018; all retail. Source(s): Criteo; ID 1067834

57 Statista Black Friday's imprint on the holiday season: Germany Main holiday event participation among German consumers

Holiday shopping event participation preferences of consumers in Germany in 2019 A holiday insights study conducted by Periscope by McKinsey revealed some interesting conclusions around holiday 42% shopping preferences of consumers. Of 40% 40.0% those consumers surveyed in Germany, 42 percent stated an aversion to any holiday 35.0% shopping event in 2019. If they were interested, however, Black Friday and 30.0% Cyber Monday had precedence over pre- 26% Christmas sales. 25.0% 21% 20.0% 18%

15.0% Share of respondentsShareof 10.0%

5.0%

0.0% I do not Black Friday Cyber Monday Pre-Christmas Cyber Week participate Sales

Note: Germany; August 2019; 18 years and older; 501 Respondents Source(s): Periscope; ID 1065456

58 Statista Black Friday's imprint on the holiday season: United Kingdom Main holiday event participation among UK consumers

Holiday shopping event participation preferences of consumers in the United Kingdom (UK) in 2019 When it comes to the UK results, Boxing Day sales were still seen to be cherished. In fact, a higher share of consumers 51% preferred Boxing Day shopping to Cyber 50.0% Monday sales. Black Friday still remained the clear winner with the majority of consumers planning to participate in the 40.0% 36% event. 32%

30.0% 27%

22%

20.0% Share of respondentsShareof

10.0%

0.0% Black Friday Boxing Day Sales Pre-Christmas I do not Cyber Monday Sales participate

Note: United Kingdom; August 2019; 18 years and older; 501 Respondents Source(s): Periscope; ID 1065433

59 Statista Holiday shopping timeline in Europe Christmas shopping gets done between late November and early December

When shoppers begin holiday shopping in selected European countries in 2019, by time of year In the UK, Germany, Sweden, and the Benelux countries, consumers invariably concentrated on the first half of December UK Germany Benelux Sweden to start their holiday shopping. Another peak time for Christmas shopping was late November, particularly so with UK and German shoppers.

The shopping window in the last two weeks of November coincides with Black Friday and Cyber Monday, which again is likely to create a ripple effect well into December. Share of respondentsShareof The fact that Black Friday is an organized event marketed globally on a massive scale makes this shopping phenomenon an attractive option for the spending masses. In any case, the convenient blending of Black Friday with Christmas sales provides an opportunity for those who like to keep on top of their Christmas holiday shopping lists.

Note: Europe; December 2018 to January 2019; 4,500 Respondents Source(s): Episerver; ID 1077857

60 Statista Recommendations

Dossiers

Black Friday in the UK

Black Friday in the Netherlands

Thanksgiving weekend shopping in the U.S.

Christmas in

Christmas in Sweden

Christmas season in the U.S.

Holiday season shopping in

Statista Consumer Survey

Holiday Season & New Year in the UK 2019

Holiday Season & New Year in the U.S. 2019

61 Statista Sources

British Retail Consortium OECD

Criteo Office for National Statistics (UK)

CRR Periscope

Deloitte Picodi

Episerver Prosper Insights & Analytics

European Commission Retail Week Eurostat Salesforce Research EY Statista Survey Facebook Statistisches Bundesamt Ferratum Valitor GlobalData VoucherCodes.co.uk HDE

Ipsos

KPMG

National Retail Federation

63 Statista Author

Tuğba Şabanoğlu Expert – Retail & E-commerce Europe

[email protected]

Tuğba Şabanoğlu is the Statista specialist for research on retail and e-commerce in the United Kingdom and Europe. She is a graduate of Freie Universität Berlin and holds an M.A. degree in English Studies.

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