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Shoppers with sales FOMO will drive record-breaking spending this year
As the floodgates open for the 2016 holiday shopping season on Friday, UK shoppers are expected to spend a record-breaking £1.7 billion online between Black Friday and Cyber Monday as predicted by Elavon Financial Services DAC –the market leader for integrated accounting, payroll and payment systems. Driving this spending spree is the fact that shoppers have a fear of missing out (FOMO) on a good deal or sale.
While the UK continues to see overall economic recovery, growing consumer confidence will be reflected in Christmas spending on the high street and online. According to a survey sponsored by Elavon Financial Services DAC, nearly three out of four holiday shoppers admit to going over their budget on their Christmas spending.
The billion pound bombardment will spike on 30 November, better known as Cyber Monday, when UK consumers will spend £828 million in online purchases.
“As UK small businesses embrace the US holiday sales trend, they need to be prepared for the increased sales volume both in stores and online,” said Seamus Smith, CEO of Opayo. “That includes staffing properly, stocking inventory and also making sure they have a reliable payments system in place.”
While not all companies will take advantage of the sales spike this year, those that do will need to be prepared for a 13% increase in sales from last year.
“Black Friday and Cyber Monday can be stressors for both shoppers and for retailers, and we’ve seen some high profile organisations shy away from the seasonal sales this year,” Smith added. “But our research shows that almost 60% of consumers are planning to take advantage of the sales and will be ready to spend more than they did last year with their favourite retailers.”
Last year, Elavon Financial Services DAC correctly predicted that UK shoppers would spend more than £600 million on Cyber Monday alone. Opayo also predicts that midday will be the busiest time for online shopping, in line with predicted online traffic patterns from the past two years.
Additional research findings include:
*Estimate based on a percentage increase of 13% year over year.
**Estimate based on a percentage increase of 13% year over year.
***Estimate based on percentage increase from last year’s Opayo transaction data.
****Based on Opayo’s internal data of the total number of transactions processed during Cyber Monday (2009-2014 inclusive).