December 2016

Countdown to Christmas What shoppers really want this Christmas

intu Countdown to Christmas December 2016

Introduction David Fischel, intu chief executive:

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What does Christmas mean for today’s shoppers? And how are these changing shopping habits affecting what people want from their Christmas shopping experience? “This latest report looks at what impact changing shopping habits are having on our customers’ Christmas shopping patterns. We surveyed 2,000 people across the UK and 200 decision makers within the retail industry to help us understand what today’s Christmas shopping experience looks like for shoppers and retailers and to show what landlords can do to help create that unique seasonal feeling that will draw people into our retailers’ stores, coffee shops and restaurants. “The research unearths some fascinating insights into attitudes towards the key dates in the Christmas shopping calendar and shows that giving customers a great experience is all part of helping them into the Christmas spirit.

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Insight: shopper types As owners of the largest and most popular shopping centres in the UK, intu uses insight to ensure that our centres deliver an outstanding shopping experience to drive dwell time and frequency of visits so that our customers become brand fans which ultimately to the benefits our retailers, restaurateurs and leisure operators. Through our ongoing insight programme we already know that the same person looks for different experiences dependent upon their shopper mission or shopping partner. Earlier this year, we took a deeper dive into our research and identified seven distinct shopping types based on behaviours. Using our now infamous ‘intu bird’ as inspiration, we’ve brought these to life by matching each type’s characteristics to one of seven birds which are shown throughout this report. By injecting a bit of joy into how we use our insight it has really brought our shopper types to life for our staff and 35 million customers who are having fun identifying their Christmas shopper type.

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intu Countdown to Christmas December 2016

Where it all starts Black Friday is now seen by many as the start of the Christmas shopping season, despite being a relative newcomer on the British retail scene. It is one of the biggest shopping days in the UK, with around £1.1 billion spent in store and online last year. Yet we discovered that it hasn’t quite caught the imagination of British shoppers with nearly half (49%) stating that they were unlikely to take part. 37% went on to say they would actively avoid discount hunting during Black Friday and 9% said they haven’t even heard of the day. But our research also revealed that more ambivalent shoppers can be won over. These shoppers tend to have an opportunistic approach to Black Friday – if they spot a good deal, and it is easy and convenient to get hold of, they will buy. Well-stocked and efficiently run stores and websites would win over a good 50% of these shoppers. Clear signposting of deals (36%) and a comprehensive range of delivery options (20%) were also factors they said would persuade them to make a purchase.

Shopper type: the Bargain Hunter The Bargain Hunter, the hawk, keeps a beady eye open for a bargain. With amazing hawk-like vision, they’re always looking out for the biggest deals and will be up bright and early to tackle the sales. Black Friday is made for hawks – they aren’t afraid to swoop down and grab that great deal before anyone else, whether that is online or in store.

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intu Countdown to Christmas December 2016

Unlike later on in the festive season, people do not yet have an emotional connection to Black Friday – they want to be served swiftly and efficiently, get a good bargain and get prepared to enjoy the rest of their Christmas shopping. In store, customers want to spend as little time as possible rooting out the best deals – no more than 40 minutes and only 4% anticipate combining bargain hunting with socialising. This year saw retailers spreading out the sales period to maximise the sales opportunity, with Black

Friday evolving into a ‘Black Five Days’. With a more structured approach to the discount period, shoppers we spoke to felt they were greeted with a more stress-free experience than in previous years. In store was as popular as ever with almost three million people visiting an intu centre on the Friday and Saturday. Our transactional website intu.co.uk experienced a record Black Friday, with customers using the whole week to research items, before buying in centre or online.

Shopper type: the Wise Shopper The Wise Shopper , the owl, is well planned, thoughtful and one step ahead of the Christmas flap. They started their Christmas shopping early and know exactly what they are going to buy and for whom. If they can use Black Friday to tick off the last items on their list, all the better!

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intu Countdown to Christmas December 2016

Getting into the festive spirit There is something irreplaceable about the experience of actually ‘going Christmas shopping’ and our survey shows that over 60% of shoppers are planning visits to a shopping centre or the high street this Christmas. For many, this is when they first start getting that festive feeling thanks to the buzz, the decorations and the seasonal range of products available. Christmas decorations in shops and shopping centres starts to get 37% of shoppers into the Christmas spirit and 40% love hearing Christmas songs while they are shopping. 13% say that Christmas shopping is as much about the experiences they can take part in as it is about what they buy. A surprising number of people, 14% of those surveyed, prefer Christmas shopping – finding the perfect gifts and enjoying being surrounded by all the festive fun such as carol singing – to Christmas day itself!

Shopper type: the Over Excited Shopper The Over Excited Shopper, the peacock, cannot contain their excitement, drowning their house in decorations as soon as there’s a whiff of Christmas in the shops. They love Christmas shopping and festive events - anything shiny will attract their attention, from Christmas baubles to sparkly shoes.

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intu Countdown to Christmas December 2016

Lots of people see Christmas shopping as a chance to meet up with friends or family and socialise at the same time. Around a third of shoppers tell us they get into the festive spirit by shopping or meeting up with friends, treating their family to a meal and arranging festive entertainment for their children, such as a trip to meet Santa or a spin on the ice, and this shows the importance of a well curated festive offering from shopping centre landlords. On average, people spend £110 on Christmas experiences outside of the home, which includes eating out, enjoying a Christmas glass of fizz and a visit to the cinema or a spin around an ice rink. And of course these experiences extend the dwell time and the enjoyment of the whole experience which we know, from our proprietary Tell intu research, has a direct impact on increasing spend in shops that helps our retailers flourish.

Shopper type: the Big Day Out Shopper The Big Day Out Shopper, the duck, strolls with their brood in tow, looking for fun, festive distractions to keep the kids entertained. The Big Day Out Shopper tries to have a happy smile for everyone, and enjoys nesting with their family in a restaurant, with everyone tucking into some Christmas treats, before visiting Santa’s grotto.

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intu Countdown to Christmas December 2016

Understanding our customers’ desire for experience enables intu to create the perfect Christmas shopping experience for each of our shopper types so that we can win the breakfast table discussion of ‘where shall we go today?’. This means decking out our centres in festive finery, providing children with the much-reminisced experience of a magical visit to Santa’s grotto (now enhanced by the latest digital technology) or giving customers the opportunity to take a spin around an ice rink and enjoy a festive film and drink with friends. All this while offering the right retail mix adapted for the season so shoppers can browse and buy to their hearts’ content to find the best gifts for family and friends. Or of course themselves, as nearly a fifth

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of shoppers say they will reward themselves with a little present while they are shopping for others. And what about the retailers? Our survey of 200 top retailers revealed the importance of experiences in store too, with investment in additional staff, decorations and in-store events among the top five tactics they intend to employ this Christmas to win their share of Christmas spend. 36% will change the store layout, invest in more ‘buy more, save more deals’, experiment with product giveaways and create in store grottos to enhance the customer experience. A third of retailers surveyed felt that having high performing retailers, bars and restaurants, a Christmas grotto and a lights switch-on event nearby will help them to improve trading over Christmas.

Shopper type: the Me Me Me Shopper The Me Me Me Shopper, the flamingo, absolutely loves Christmas shopping and treating themselves, whilst always looking fabulous of course. Colourful, and flamboyant, with their head held high, the shopping centre is their catwalk. A day’s shopping isn’t complete without a delicious lunch and something fizzy with the girls.

intu Countdown to Christmas December 2016

Counting down to Christmas

The Christmas shopping trip has become a tradition in itself, often with couples going out for the day to buy the family gifts. One in five shoppers now take time off work to really maximize the experience and get into the Christmas spirit, perhaps combining their trip with a glass of bubbles and ending the day at the cinema or with a meal out.

Shopper type: the Window Shopper The Window Shopper, the swan, glides from shop to shop, taking their time browsing hundreds of stores or trawling online for the most thoughtful and perfect gift idea. They take inspiration from window displays and will spend time looking at what’s on offer. Graceful and elegant, they’re never in a rush to get anywhere and aren’t easily flustered.

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intu Countdown to Christmas December 2016

But people are also squeezing Christmas shopping into their daily routines with 9% admitting they shop more online during working hours at Christmas as well as shopping in their lunch breaks more than usual. Also noticeable is the number of people who shop in the evenings and even at night – 16% wait until the end of the day to go Christmas shopping. 44% of retailers we spoke to said they are extending their opening hours over Christmas so this and the extended evening opening hours of many shopping centres will suit those shoppers. While 13% of shoppers have completed their Christmas shopping by the end of November, 87% still make some or all of their Christmas purchases in December, with a third leaving the majority of their shopping until the last week. 15% are still shopping on Christmas Eve, which 36% of retailers cite as their most important trading day. Customers expect retail brands, both in store and online, to be well prepared for the December peak, and are looking for wellstocked stores, helpful and knowledgeable staff and flexible delivery options with 14% choosing click and collect.

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Shopper type: the Last Minute Panic Shopper The Last Minute Panic Shopper, the chicken, is always in a rush running around in a hurry because their Christmas shopping has been left until the last minute. They run from shop to shop with a long daunting list of names to buy for.

intu Countdown to Christmas December 2016

In conclusion: creating that festive feeling A great customer experience is important throughout the year and at Christmas, despite the added pressures and immoveable deadline, customers want that great experience with bells on (and tinsel, reindeers and some snow please!). And while shoppers are happy to combine online and offline to suit their busy lives, the physical act of ‘going Christmas shopping’ continues to be an important and special part of their Christmas traditions. Over a million people will visit an intu shopping centre every day this Christmas to shop, eat, socialise and take part in the many Christmas activities available. We want to make them smile by creating their perfect shopping experience, whether they are a peacock, duck or hawk. And by getting it right for them, we’re getting it right for our thousands of retailers.

intugroup.co.uk @intugroup 020 7887 4220

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