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Enjoy your merriest sales season with these insights into how shoppers will spend this Christmas.

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The festive season is fast approaching, which means it’s time to put your sales strategy into action. To help you prepare, we’ve highlighted some of the top retail trends for 2024’s golden quarter.

<h2>Shoppers are starting early</h2>Festive shopping has kicked off early this year. By mid-September, nearly one in five Brits (18 per cent) had purchased a Christmas gift, and many more are expected to start shopping early1.

<h2>Mobile is on the rise</h2>Mobile shopping is fast becoming a vital part of the shopping experience, including during the festive period.Already, smartphones account for 77 per cent2 of traffic to UK retailers, and by 2027, it’s estimated that more than half (58 per cent)3 of all e-commerce sales will take place on a mobile phone. By then, it’s estimated that UK mobile sales will be worth £109 billion4.What does this mean for retailers? Ensuring that mobile shoppers enjoy a smooth path to purchase – whether that means shopping through an app, website or via social media – is more important than ever.

<h2>Clearpay: a popular choice for holiday shoppers</h2>Buy Now, Pay Later (BNPL) services, such as Clearpay, have become a popular option for shoppers to flexibly manage their finances over the festive period. As<a href="https://au.trustpilot.com/review/www.clearpay.co.uk" rel="noopener noreferrer" target="_blank"> a highly rated BNPL platform</a> in the UK, Clearpay's TrustPilot rating reflects its popularity and trust among UK shoppers. It enables customers to buy now and pay it in 4 interest-free instalments over six weeks (late fees apply). With a network of more than 25,000 brands, Clearpay has become an important service to offer customers at checkout.

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<h2>Stock up on stocking fillers</h2>It’s not just children who will receive a Christmas stocking this year. In 2023, adults spent an average of £62 per stocking for grown ups, which is 17 per cent more than the amount typically spent on children’s stockings. Men spend more on Christmas stockings than women, and the most popular stocking fillers were sweet treats (60 per cent), socks (40 per cent), perfume or aftershave (34 per cent), accessories (33 per cent) and make-up and beauty products (33 per cent).

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All references to any registered trademarks are the property of their respective owners. Clearpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

1Clearpay commissioned OnePoll to conduct a survey of 2000 UK adults who celebrate Christmas. The research was carried out between 29th August&nbsp;2024 – 3rd September 2024.&nbsp;OnePoll is a MRS Company Partner. 2&nbsp;<a href="https://www.statista.com/statistics/1254788/retail-site-device-visit-order-share-uk/" rel="noopener noreferrer" target="_blank">Statista</a> 3 e-Marketer Forecast 2024 4 <a href="https://proxy.parisjc.edu:8293/statistics/285661/m-commerce-retail-revenue-in-the-united-kingdom-uk/" rel="noopener noreferrer" target="_blank">Statista</a> 5&nbsp;Clearpay commissioned OnePoll to conduct a survey of 2000 UK adults who celebrate Christmas. The research was carried out between 29th August&nbsp;2024 – 3rd September 2024.&nbsp;OnePoll is a MRS Company Partner.

Discover exclusive insights into how shoppers spent in 2023 and how they'll shop in 2024.

Discover exclusive insights for 2024 into how shoppers will spend, when they spend, and whether they spend in-store or online with Clearpay's festive forecast.

How British shoppers will spend this Christmas

Discover the top festive retail trends for 2024

festive forecast insights uk 2024

A new report uncovers exactly how Brits will approach the festive period and how rising inflation will impact their shopping plans.

Tis the season to be jolly… but with interest rates rising and inflation soaring, many retailers may be wondering just how jolly this festive period will be.The good news, according to <a href="https://business.afterpay.com/rs/539-RJA-633/images/Festive%20Forecast%20by%20Clearpay.pdf" rel="noopener noreferrer" target="_blank">Clearpay’s new Festive Forecast</a> report is that while Brits are undoubtedly being impacted by inflation, shoppers are excited about the festive season – and many are keen to spend.<a href="https://business.afterpay.com/rs/539-RJA-633/images/Festive%20Forecast%20by%20Clearpay.pdf" rel="noopener noreferrer" target="_blank">Clearpay’s Festive Forecast</a> surveyed 1000 Brits, who were nationally representative across age, gender and location, as well as an additional sample of 500 Gen Z and Millennial shoppers. It uncovered a wealth of information about how and when shoppers will spend, and what they’ll buy this festive season.&nbsp;The report also confirmed that although the challenges this holiday season are real, the opportunities are vast, as long as retailers understand the shopper mindset.<h2>Festive Forecast findings, at a glance:</h2><ul><li>70% of Brits will be splurging on food and drink</li><li>51% will be spending on socialising</li><li>Gen Z and Clearpay users are particularly excited about the festive season</li><li>45% of shoppers turn to family and friends for gift inspiration</li><li>48% of shoppers would be spurred to spend if an item was on sale</li><li>One in 10 Brits plan to use BNPL</li></ul><h2>Everyone’s a bargain hunter&nbsp;</h2>The Festive Forecast confirmed that Brits are feeling the impact of rising rates and inflation, and found that nearly half of consumers (48%) are cutting back on general purchases, while nearly a third (30%) reducing their contribution to their savings account.&nbsp;They’re still keen to spend on Christmas, but will be paying more attention to the price than usual: two in five shoppers plan to spend less this Christmas season, and one in five will be looking to purchase less expensive gifts.<h2>Where shoppers are getting gift inspiration</h2>When it comes to gift ideas, family and friends are the top source of inspiration (45%) along with simply being in-store or at a shopping centre (44%). Shopping apps are another important influence, along with shopping catalogues and websites.&nbsp;<h2>Sales drive sales</h2>Another important shopping cue is discounts, with 48 per cent of consumers saying that noticing an item is on sale would prompt them to purchase, while one in four said sales events like Black Friday would nudge them into buying.&nbsp;&nbsp;&nbsp;The appeal of sales, together with the challenging financial climate, suggest that Black Friday Cyber Monday (BFCM) is poised to be a major opportunity for retailers this year, particularly among younger shoppers.&nbsp;<h2>Fashion comes first</h2>Fashion – from clothing to footwear and accessories – is the most popular gift to buy… and to receive. Brits are also planning to buy gift cards, beauty and wellness products, and children’s toys this festive season.<h2>Don’t miss out on customers</h2>One in 10 shoppers plans to use a BNPL service like Clearpay this festive season, and it’s even more popular among Gen Z and Millennials, with one in five shoppers planning to use BNPL.And shoppers who purchase more expensive gifts are more likely to use Clearpay. That’s because they see it as a “safe and secure” way to pay and because it “helps with budgeting”.&nbsp;So it pays to ensure that Clearpay is clearly displayed and promoted, whether you run an e-commerce or brick-and-mortar store.For more insights into consumer behaviour during the festive period, you can read the full report <a href="https://business.afterpay.com/rs/539-RJA-633/images/Festive%20Forecast%20by%20Clearpay.pdf" rel="noopener noreferrer" target="_blank">here</a>.

A new report uncovers exactly how Brits will approach the festive period and how rising inflation will impact their shopping plans.

Inside a new report that uncovers how Brits will shop and spend during the festive period of 2022 and how rising inflation will impact their shopping plans.

Festive retail trends 2022: How Brits will spend this holiday season

How shoppers will spend this festive season

Festive forecast UK

A new report reveals how shoppers will be spending as the cost-of-living crisis sets in

The festive season isn’t just the biggest time of year for Santa and his elves; retailers are typically run off their feet, too. In fact, the period between October to December is often described as “The Golden Quarter” thanks to its income-generating potential.This year, though, the cost-of-living crisis is taking some of the shine off the bauble. So, how can retailers navigate this challenging holiday season?According to a <a href="https://www.clearpay.co.uk/en-GB/the-modern-consumer-report" rel="noopener noreferrer" target="_blank">new report</a> from The UK E-commerce Association (IMRG) and Clearpay, which surveyed more than 1000 British shoppers, the challenges are real but the opportunities are vast – if retailers can understand what shoppers are searching for.<h3>Consumer sentiment is cautious</h3>We’ve all heard about the rate of inflation in the UK, which is now at a <a href="https://time.com/6223073/uk-inflation-40-year-high/" rel="noopener noreferrer" target="_blank">40-year high</a> – and there’s no doubt that consumers are feeling the pinch, making discretionary purchases more carefully. According to IMRG and Clearpay’s report, <a href="https://www.clearpay.co.uk/en-GB/the-modern-consumer-report" rel="noopener noreferrer" target="_blank">The Modern Consumer: How shoppers are behaving in the cost-of-living crisis</a>, 61 per cent of consumers said they plan to spend less on gifts this Christmas.<h3>Deals and discounts</h3>The upside? More than half of consumers (56%) plan to spend the same or more in total compared to last year (including food, drink and entertainment).&nbsp;Shoppers are also on the search for value and discounts, and many (35%) are planning to start their festive shopping earlier than ever, in October and November.&nbsp;This means that Black Friday Cyber Monday (BFCM) is poised to be a major opportunity for retailers this year, which means it’s important to ensure that marketing is well under way.And, according to the Modern Consumer report, shoppers who get in early often spend more: a quarter of consumers said that discounts or promotions allow them to budget more for gifts than planned, and around 25 per cent said they wait for sales and promotions to buy Christmas gifts.&nbsp;Meanwhile, four in 10 consumers said they are likely to spend the same as or more on Christmas overall than last year.<h3>Gen Z = Gen Spend</h3>An important customer group this festive season is Gen Z (aged 18-24). Unlike older survey respondents in their 40s and 50s, whose gift-purchasing intentions are most impacted by the cost-of-living crisis, Gen Z is most likely to spend the same or more this festive season.This is possibly because many young adults have recently entered the workforce and are still living at home. Then there’s the post-pandemic pent-up demand factor to consider– after three years of limited festivities, young people want to socialise, travel and spend on entertainment.For retailers searching for incremental revenue, Gen Z is an important demographic.<h3>Location, location</h3>Where shoppers are finding inspiration for their wish lists and gift lists is shifting too, perhaps reflecting Gen Z habits. While 56 per cent of respondents said being in-store or at a shopping centre is a source of inspiration when it comes to buying a Christmas gift, 66 per cent of shoppers expect to make the majority of their purchases online.&nbsp;Crucially, more than one in four shoppers said they would buy more online if they didn’t have to pay for shipping or delivery, so it’s important that retailers consider whether offering free shipping (or free shipping over a specific purchase price) is a worthwhile investment.&nbsp;Facebook, Instagram and Tik Tok are significant sources of inspiration for consumers, making them key purchasing levers.&nbsp;<h3>What’s on the wish list&nbsp;</h3>What’s everyone planning to give and hoping to receive? The traditional festive categories of toys and games, beauty, and jewellery will still be strong, but clothing and fashion is set to perform better than most other sectors. According to IMRG data, clothing, womenswear, and footwear were the only categories to experience year-on-year online sales increases in the first six months of 2022 and the category is predicted to continue to shine, with more demand for work wear, occasion wear and casual wear as we emerge from our loungewear.&nbsp;<h3>Flexibility is king</h3>With the cost-of-living crisis continuing, payment flexibility is high on shoppers wish lists this festive season, with 55 per cent of respondents reporting that they have either used or would use Buy Now Pay Later systems like Clearpay as a budgeting tool to manage their finances responsibly.While young people are most open to BNPL, at least a quarter of people in all age groups questioned who would consider or are already using BNPL. Now more than ever, retailers need to keep up with consumer demand when it comes to how they pay, especially as we enter the most expensive time of the year.To read the full report, please download it from <a href="https://www.clearpay.co.uk/en-GB/the-modern-consumer-report" rel="noopener noreferrer" target="_blank">here</a>.&nbsp;

A new report reveals how shoppers will be spending as the cost-of-living crisis sets in.

A new report from Clearpay and IMRG reveals how festive shoppers are reacting amid a cost-of-living crisis – and how retailers can respond.

How festive shoppers are reacting amid a cost-of-living crisis

Cost of living report Clearpay

Together we plan to offer an innovative commerce platform with even deeper omni-channel offerings and new financial tools.

Today is a big day for Clearpay. Today, we <a href="https://corporate.afterpay.com/newsroom/media-release" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;">officially joined the Block family </a>and we couldn’t be more excited by the opportunity ahead.&nbsp;More specifically, Square’s more than a decade of experience building tools for businesses of all sizes, in combination with their large and growing Cash App customer base of 70 million annual transacting active customers, will help scale our marketing platform and accelerate our ability to connect you with these engaged next generation consumers.&nbsp;Working together, the combined teams plan to offer an innovative commerce platform with even deeper omni-channel offerings and new financial tools that consumers rely on in their financial lives - including Cash App’s money transfer, stock and Bitcoin purchases, Cash Boost and more.Rest assured, Clearpay’s existing brand and functionality will remain and continue to be led by a stellar management team. There will be no interruption to our relationship. If you have any questions take a look at our <a href="https://help.clearpay.co.uk/hc/en-gb/categories/900001231083-I-M-A-MERCHANT" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;">FAQs</a>.We look forward to working with you in 2022 as we realise the full potential of our combination.

Together we plan to offer an innovative commerce platform with even deeper omni-channel offerings and new financial tools.

Clearpay officially joins Block

clearpay joins Block  UK

How retailers and merchants can stay ahead, socially, this year.

There’s little doubt that COVID-19 has transformed the way we live, work and connect. As humans, we crave social connection, and when lockdowns prevented us from meeting in person, many people gravitated to social media. And it seems our thirst for social media extends beyond lockdown.In the past year, total social media users increased by<a href="https://influencermarketinghub.com/social-media-marketing-benchmark-report/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;"> </a><a href="https://influencermarketinghub.com/social-media-marketing-benchmark-report/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: transparent;">13.1 per cent</a>.That’s 4.48 billion people, spending two hours and 25 minutes on average on social media, every day.As consumers spend more time on platforms like Facebook, Instagram and TikTok, understanding new social media trends has never been more important for brands and businesses. So, as we enter a new year, we asked experts to identify the biggest trends to be aware of in 2022.<h2>TikTok continues to grow&nbsp;</h2>TikTok users doubled in the past year, and in September 2021 the social media platform clocked up 1 billion users for the first time.

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It's important brands get on TikTok now before it becomes much harder to grow in 2023.

This makes TikTok the seventh largest social media platform in the world (after Facebook, YouTube, Whatsapp, Facebook Messenger, Instagram and WeChat) – and one that brands increasingly need to factor into their marketing plans (especially if reaching Gen Z is a priority).The good news is that, as a relatively new social media platform, TikTok offers opportunities that more established platforms do not.“I predict we'll see a continued rise in live shopping on TikTok, where brands host videos showing their products on a live stream, and have easy integrations with Shopify to allow consumers to easily shop within the app.”

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<h2>Influencer partnerships go long-term</h2>In 2022, there’s no slowing down when it comes to influencer domination, although in 2022, get used to the term ‘creator’, which is increasingly overtaking the title ‘influencer’.However, experts say there is a noticeable shift in the way that creators and brand partnerships are formed, with businesses moving away from one-off, transactional collaborations to instead focus on longer-term, more strategic partnerships and co-creation/ co-branded experiences.&nbsp;“This creates a more authentic and ongoing relationship with both the brand and influencer's audience,” says Taryn Williams, founder and CEO of<a href="https://theright.fit/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(250, 250, 250); color: rgb(38, 38, 38);"> </a><a href="https://theright.fit/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 255);">TheRightFit.co</a> and<a href="https://www.theinfluencers.com.au/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);"> </a><a href="https://www.theinfluencers.com.au/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 255);">Theinfluencers.com.au</a>.

Most influencers provide discounts for ongoing work.

“We are seeing more brands shifting to this style of engagement as it also locks influencers out of working with competitors, and can be financially more beneficial for a brand than paying for individual one-off posts [as] most influencers provide discounts for ongoing work.”&nbsp;Williams adds that 2022 will see an increased focus on diversity and inclusivity, with brands moving towards influencers and creators who are truly representative of their customer base in terms of age, ability, body shape, size, lifestyle, ethnicity, race, religion, sexuality, gender and more.&nbsp;“It’s becoming much less of a ‘token’ gesture or afterthought with leading brands, and something that is now prioritised in all aspects of a brand’s marketing strategy,” she adds.

<h2>Video continues to lead the way</h2><a href="https://www.wyzowl.com/video-marketing-statistics/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: rgb(255, 255, 255);">Video content will continue to dominate in 2022</a>, with the focus on short-form content that is easy-to-digest and highly engaging. Think: Instagram Reels and TikTok videos (which are increasingly repurposed and posted&nbsp;to other platforms like Instagram).If you didn’t have a social media video strategy in 2021, now’s the time to correct that. And it’s important that video is created with social media in mind, believes Shepherd.“Too many brands create video content and throw it up on social media as an afterthought,” says Shepherd. “With the head of Instagram, Adam Mosseri, recently announcing that Instagram is focusing on pushing video content, it's important brands take this seriously. We've seen the rise of TikTok and short-form video content, and now Instagram doesn't want to get left behind.”“As creators hone their craft in this area, I think we will see more innovative, easy-to-consume, highly engaging short-form content next year,” says Williams. “We’ll continue to see a shift towards ‘lo-fi’ video – which feels more authentic and less overly produced – created for the platform, [rather] than repurposed content that can feel more ‘advertising’ than native. I think the growth of TikTok has expedited this change.”

<h2>Social commerce gains momentum</h2>Bricks-and-mortar shopping might be back after months of lockdowns, but social commerce isn’t going anywhere.<a href="https://www.afterpay.com/en-AU/business/access/social-media-tips/social-commerce-guide" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(15, 15, 15);"> </a><a href="https://www.afterpay.com/en-AU/business/access/social-media-tips/social-commerce-guide" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">Social commerce</a> – aka shopping directly via social media – is a seamless way for brands to connect directly with their customer and convert content directly into sales.Over the past 18 months, most social networks have begun offering in-app shopping solutions, from Instagram to Facebook and Pinterest. And shoppers are spending billions of dollars via social media; in 2020, for example, worldwide social commerce was worth<a href="https://www.researchandmarkets.com/reports/5140143/social-commerce-global-market-trajectory-and?utm_source=CI&amp;utm_medium=PressRelease&amp;utm_code=jgbxsq&amp;utm_campaign=1434944+-+Assessment+of+the+Social+Commerce+Industry+2020-2027+and+Impact+of+COVID-19+-+Mobiles+Segment+Readjusted+to+a+Revised+39.2%25+CAGR+for+the+Next+7-Year+Period&amp;utm_exec=joca220prd" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(15, 15, 15);"> </a><a href="https://www.researchandmarkets.com/reports/5140143/social-commerce-global-market-trajectory-and?utm_source=CI&amp;utm_medium=PressRelease&amp;utm_code=jgbxsq&amp;utm_campaign=1434944+-+Assessment+of+the+Social+Commerce+Industry+2020-2027+and+Impact+of+COVID-19+-+Mobiles+Segment+Readjusted+to+a+Revised+39.2%25+CAGR+for+the+Next+7-Year+Period&amp;utm_exec=joca220prd" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">$115.5billion.</a>&nbsp;&nbsp;

<h2>Augmented reality gets real</h2>Instagram and Snapchat filters have been around for a while, but augmented reality (AR) and virtual reality (VR) are becoming more sophisticated as users demand more engaging experiences.Experts say that AR also offers the potential to remove some of the pain points from online shopping.“We'll be able to try on items or see them in our home on our phone in an instant,” says Karyn Parkinson, director at<a href="https://unstoppableecomm.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(49, 49, 49); background-color: transparent;"> </a><a href="https://unstoppableecomm.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: transparent;">Unstoppable eCommerce</a>.“This will give the buyer a more hands-on experience and will overcome a huge barrier that currently exists with online shopping (that is, not being able to touch, feel and try on the product).”Plus, she adds, “as software becomes cheaper and more accessible, we'll see more businesses start to use augmented reality for e-commerce”.

<h2>Increased focus on UGC</h2>Customers are demanding authentic, real-time and real-life reviews of products before they will buy, with<a href="https://embedsocial.com/blog/ugc-statistics/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(15, 15, 15);"> </a><a href="https://embedsocial.com/blog/ugc-statistics/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">research</a> out of EmbedSocial showing that UGC content has a 35 per cent higher engagement rate on social media than branded content. Brands will utilise this to drive brand awareness, trust and sales, with UGC as a major part of their marketing strategy.&nbsp;“UGC is a fantastic way to build trust and social proof and is very cost-effective, so I think we will be seeing more brands embedded UGC throughout their e-commerce experience and in more marketing touchpoints (retargeting ads, drip-feed emails etc),” says Williams.

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All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

Here are the social media trends to know in 2022 to help retailers and merchants stay ahead and drive sales.

Here are the social media trends to know in 2022 to help retailers and merchants stay ahead and drive sales

6 social media trends brands and retailers need to know in 2022

6 social media trends you need to know in 2022

Six social media trends you need to know in 2022 Aus 3

From ‘calm commerce’ to the dash from cash, we ask the experts to share their insights

Although 2020 was a turbulent year for retailers and small business owners – to put it mildly – experts are cautiously optimistic about this year’s outlook.In many cases, analysts argue that the pandemic simply accelerated changes – such as the cashless economy and e-commerce – that were already underway. “Indeed, many fashion companies have taken time during the crisis to reshape their business models, streamline their operations and sharpen their customer propositions,” McKinsey says in its <a href="https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion" rel="noopener noreferrer" target="_blank">State of Fashion 2021</a> report.&nbsp;So, which are the top trends you need to know?

<h2>Calm commerce</h2>“Consumers don’t want to linger in stressful retail spaces for extended periods of time,” says Charlie Clark, trend expert for <a href="https://www.wgsn.com/fashion" rel="noopener noreferrer" target="_blank">WGSN</a>. “People don’t want the retail experience to add to their sense of being overwhelmed, but rather to make their lives easier, and in some cases to provide a sense of calm, sanctuary and escape.&nbsp;“So, it will be important to make their shopping experience easier and more convenient. That could be through introducing products that actually make their lives easier, bundling products together or by making the whole experience much more streamlined and calming.”Part of this reluctance to linger and browse is due, of course, to the effect of the pandemic on our psyche, says veteran retail executive and industry advisor Paul Zahra. “Customers are shopping with purpose and a focused set of purchases in mind,” he says. “Hygiene practices are now part of operating a business in the new COVID world, and retailers are ensuring all in-store traffic and high-touchpoint areas are appropriately managed. These safety practices and changes in the consumer’s mindset are set to continue in 2021.”

<h2>Localised and community-led retail</h2>Supply-chain disruption overseas – plus the fact that many of us have been spending much more time in our neighbourhoods and communities – means that shopping locally has become more important to consumers. According to <a href="https://www.accenture.com/au-en/insights/retail/coronavirus-consumer-habits" rel="noopener noreferrer" target="_blank">Accenture</a>, 56 per cent of consumers are shopping in neighbourhood stores or buying more locally sourced products – and 84 per cent plan to continue buying locally sourced.

“Consumers increasingly want to spend with brands and businesses that are creating tangible, positive impact on the places that they live.”

“Consumers increasingly want to spend with brands and businesses that are creating tangible, positive impact on the places that they live,” says Clark. “Isolation has been a key challenge for many, so it’s also important to build strategies that allow them to feel more connected to each other through community.”

<h2>Contactless digital shopping</h2>The third quarter of the financial year ending December 2020 was the busiest for parcel delivery in <a href="https://postandparcel.info/133250/news/post/royal-mail-q3-results-on-our-busiest-day-we-delivered-11-7-million-parcels/" rel="noopener noreferrer" target="_blank">Royal Mail’s history</a>, and online sales were up <a href="https://www.capgemini.com/gb-en/news/strong-december-caps-standout-2020-as-online-sales-growth-hits-13-year-high/" rel="noopener noreferrer" target="_blank">37 per cent</a> year-on-year – making a successful omnichannel strategy key.Retailers also need to consider <a href="https://www.afterpay.com/en-AU/business/access/shipping-strategies/click-and-collect-guide" rel="noopener noreferrer" target="_blank">click-and-collect options</a>, says Zahra. “Retailers in the essentials category such as supermarkets and DIY stores have been offering ‘click and collect’ options for some time, but that’s now evolved during Covid to ‘direct to boot’ services where shoppers don’t have to leave their cars to pick up their items.”Other delivery services, such as<a href="https://access.afterpay.com/articles/hubbed-david-mclean" rel="noopener noreferrer" target="_blank"> </a><a href="https://www.afterpay.com/en-AU/business/access/shipping-strategies/hubbed-david-mclean" rel="noopener noreferrer" target="_blank">Hubbed</a>, have also seen demand soar.&nbsp;

<h2>The shift from cash</h2>The dash from cash is an example of a trend that started pre-COVID and accelerated in the past few months. ATM withdrawals were down 40% by volume year-on-year in October 2020, according to the <a href="https://www.bankofengland.co.uk/quarterly-bulletin/2020/2020-q4/cash-in-the-time-of-covid" rel="noopener noreferrer" target="_blank">Bank of England</a>.“Retailers need to embrace the cashless future,” says Zahra. “Businesses were actively encouraging customers to use electronic payments to slow the spread of the virus through physical contact, while some refused to accept cash at all.”Buy now, pay later (BNPL) technology – like Clearpay, operated by Afterpay – is also growing. “There’s no doubt these payment options are here to stay,” says Zahra. “They’re proving incredibly popular,” in particular for the young, as an easier and more attractive way to pay for goods and services.

<h2>Social justice and sustainability</h2>Yes, <a href="https://www.afterpay.com/en-AU/business/access/social-responsibility/conscious-consumer-retail" rel="noopener noreferrer" target="_blank">sustainability</a> is every forecaster’s go-to trend, but <a href="https://www.afterpay.com/en-AU/business/access/social-responsibility/brands-retailers-social-activism" rel="noopener noreferrer" target="_blank">brands’ social credentials</a> have become even more important post-pandemic, as the global emergency prompts consumers to reconsider their own values and priorities.“There has been a shift towards buying from businesses that align with our values and stand for causes we believe in,” says Clark.Not only does that mean treating everyone in the supply chain with fairness and respect, but it also requires a move away from the cycle of constant stock replenishment and heavy discounting, says WGSN.“COVID-19 highlighted the need for a shift in the profitability mindset”, says the Business of Fashion/Mckinsey <a href="https://www.businessoffashion.com/reports/news-analysis/the-state-of-fashion-2021-industry-report-bof-mckinsey" rel="noopener noreferrer" target="_blank">State of Fashion</a> report. Among its recommendations, the report suggests that businesses reduce their inventory by taking a demand-focused approach.&nbsp;

From ‘calm commerce’ to the dash from cash, we ask the experts to share their insights.

5 key trends to know about in retail and customer service

As the UK economy recovers from COVID-19, key generational differences are emerging in consumer spending.

According to new research from Accenture Strategy and Clearpay, Gen Z spending is now 7 per cent higher than before the pandemic, while Gen X (and older) have yet to reach pre-COVID spend levels.“This reflects the staggered emergence from lockdown restrictions in the UK in the first half of this year,” says consultant Atharva Karandikar of Accenture Strategy. “Younger workers in hospitality regained their employment, but I suspect there remained some reluctance to socialise among older people. It’ll be interesting to look at the consumer data since ‘Freedom Day’ [July 2021].”Here are some of the top insights from Clearpay’s second<a href="https://afterpay-corporate.yourcreative.com.au/wp-content/uploads/2021/08/Afterpay_NextGen_report_AUS.pdf" rel="noopener noreferrer" target="_blank"> The Next Gen Index</a> report into consumer spending:

<h2>Gen Z and Millennials’ spending power is growing</h2>Shoppers aged under 40 are becoming an increasingly powerful force in the economy. Currently, Gen Z and Millennials account for 25 per cent of the UK’s total retail spend.However, that’s predicted to grow to 39 per cent by 2030 as more Gen Z (currently aged 9-24) enter the workforce.

<h2>Younger generations are driving retail spend</h2>From a low in March 2020, spending by Millennials and Gen Z has recovered faster than that of older generations, and is now at or above pre-pandemic levels.“When the UK relaxed its restrictions, spending on restaurants, food and clothing increased among younger, more socially mobile people,” says Karandikar.

<h2>Young Britons are still buying fashion, but homewares is catching up</h2>Fashion still dominates spending using Clearpay: it accounts for 75 per cent of Gen Z’s spending and 65 per cent of Millennial spend.However, these younger generations are increasingly buying for their homes and spending on recreation, with books, electronics and games high on the list.Home and recreation spending is the fastest-growing category among young people; although it only makes up 5 per cent and 9 per cent of Gen Z and Millennial spending respectively, the category is growing above 300 per cent year-on-year.

<h2>Gen Z and Millennials are championing small business</h2>Gen Z and Millennials account for almost two-thirds of spending through Clearpay on small and medium-sized businesses.What’s more, this small-business spending is increasing. Since January 2020, consumer spend has increased by more than 900 per cent among these younger generations.Karandikar says that retailers can help drive conversions by ensuring marketing is targeted to those groups

<h2>Buy Now Pay Later (BNPL) is on the rise</h2>While BNPL still accounts for a small share of total consumer spend, it’s growing fast. Since January 2020, BNPL spend has grown by 360 per cent, compared to only a 4 per cent rise in spending on credit and debit cards.Millennials were the early adopters of Clearpay in the UK, and they still account for the majority of purchases. Older generations are catching up, however, with non-Millennial BNPL spending growing by 480 per cent in the past 18 months.

As the UK economy recovers from COVID-19, key generational differences are emerging in consumer spending. 

Inside the latest Clearpay report on Millennial & Gen Z shopping trends

It’s been an exciting start to the year here at Clearpay with the launch of our all-new feature ‘Favourites’.

The feature allows customers shopping online to save items they love but aren’t quite ready to buy, as well as their favourite stores.

The rollout comes after our research and feedback showed that saving items and stores in this way is something that customers were specifically asking for. The ‘Favourites’ functionality now answers this need by allowing consumers to easily discover, track and save their favourite stores and products within the Clearpay app.

How does this benefit retailers? Our research shows that this functionality encourages shoppers to return more frequently to track saved items, while bringing merchants increased referral traffic from return shoppers. This also provides Clearpay with clearer insights into customer behaviour, allowing us to make more personalised recommendations.

And the results speak for themselves. On average, every click from Clearpay to merchants’ sites generates higher GMV, and we’re already seeing a lift with the introduction of the ‘Favourites’ feature. By helping customers better track products directly from the Clearpay app, we have an opportunity to increase both frequency and spend.

But the benefits don’t end there. Customers will also be able to create their own curated list of Favourite products under heading such as ‘Camping trip, or ‘Holiday,’ just by tapping the love heart icon in the Shop tab. They’ll also receive notifications when their favourite stores are holding sales, and their saved products have been reduced in price.

We want our customers to find shopping a fun and social experience so our list of ‘Favourites’ can also be shared with friends and family. Customers can easily view all of their saved items and stores by heading to the Profile tab within the Clearpay app, creating a personal wish list that they can create and return to at their leisure.

The feature has now been rolled out to all app users so is available for all customers to enjoy immediately.

Want to discover Clearpay’s many other benefits? Schedule a meeting with one of our Retailer Team Members today at <a href="mailto:sales@clearpay.com" rel="noopener noreferrer">sales@clearpay.com</a>.

It’s been an exciting start to the year here at Clearpay with the launch of our all-new feature ‘Favourites’.

Clearpay launches “Favourites” to help boost interaction with customers

Clearpay’s Bi-Annual Global Trend Report is finally here, showing how U.K. customers are choosing to shop this season.

The <a href="https://www.clearpayfashionbeautyreport.co.uk/trends/uk-trends" rel="noopener noreferrer" target="_blank">report</a> aggregates data points from their customer base of over 13 million global shoppers across a catalogue of 74,000+ brands and retailers in order to identify the season’s key trends and shopping patterns.

The research is unique in that it uses up-to-the-moment customer purchase data from some of our most powerful shoppers: Millennials and Gen Z. This allows us to gain insight into how the world’s highest-value demographic is spending its money.

So what have we learned over the past few months? Let’s take a look at a few key learnings.

<h2>The UK is an important market</h2>British consumers make up nearly two million of Clearpay’s overall customer base and have become the largest group of return shoppers in the last six months. Clearpay’s research shows that British customers enjoy shopping from mobile devices, generally in the evening, and mainly pay using a debit card. Recent purchases have also shown forward thinking with many shoppers buying fashion pieces that will transition into normal life once lockdown starts to lift.

<h2>What are customer’s buying?</h2>

AccessoriesNow that lockdown restrictions have started to ease in the UK and many are beginning to socialise again, consumers are looking for those added extras that really bring an outfit to life. Some of the most popular items are jewellery, charms and bangles, as well as denim and clogs. Sales of cardholders, wallets, larger totes and shoppers are also on the increase as shoppers prepare to venture into the outside world.

Spring dressesWhile loungewear items such as hoodies and sweatpants are still being snapped up rapidly, consumers have now also turned their attention to spring dresses. Dubbed the Freedom Frock, dresses in fun, flattering shapes and bright feel-good colours and prints are reflecting the end of lockdown and a more optimistic mindset. The Cottagecore dress is also on the rise with voluminous frills, floating chiffon and tiered silhouettes making a comeback.

Fragrance and SwimwearEven though international travel isn’t back on the agenda for Brits just yet, an increase in fragrance sales is showing a desire to be transported elsewhere. Scents that remind shoppers of exotic, faraway places and nostalgic happy memories are proving most popular. With that said, many shoppers are still thinking ahead to holidays with swimsuit purchases on the rise. The most popular styles are underwired one-pieces paired with high-waisted bottoms, and asymmetric swimsuits that really enhance a woman’s curves.

FootwearEven though restrictions are easing, consumers are still remaining pretty sensible when it comes to their footwear purchases. Plimsolls are one of the most popular styles as children go back to school, followed by summer silhouettes including espadrilles and clogs. The trend for practicality is still strong, however, with slides and trainers remaining popular.

Changes in shopping habitsThe pandemic has had a huge impact on consumer attitudes and shopping habits and Clearpay’s research shows that 3 in 5 of global customers are now more likely to buy items locally while 12% are more likely to support black and minority-owned businesses. 50% are also looking for quality over quantity and 45% are likely to save their money rather than spend it. This shows that retailers will have to work harder to earn their loyalty and keep them interested with strong social fresh and interesting product offerings.

Clearpay’s Bi-Annual Global Trend Report is finally here, showing how U.K. customers are choosing to shop this season.