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Shoppers with FOMO will drive spending this year

UK consumers will shop ’til they drop billions on opening weekend of holiday shopping

Shoppers with sales FOMO will drive record-breaking spending this year

• More than £1.7 billion[1] expected to be spent online this coming weekend
• Estimated £828 million[2] to be spent on Cyber Monday alone in the UK

London, 25 November 2015: 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 Sage –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 Sage, 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 Sage Pay. “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, Sage correctly predicted that UK shoppers would spend more than £600 million on Cyber Monday alone. Sage Pay 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:

· 39% of shoppers have a fear of missing out (FOMO) on a good deal or sale.

· Nearly 71% of UK consumers report they prefer the online experience to braving the crowds during the holiday shopping season.

· 20% of shoppers blow their budgets on Black Friday due to bargains they can’t resist.

· On Cyber Monday, the average transaction value will be more than £105.[3]

· There’s been an 80% increase in the amount of transactions seen by Sage during Cyber Monday over the past 6 years.[4]

To learn more about Sage Pay’s research, read “Yule Be Sorry: How to avoid Christmas Shopping FOMO” by visiting: http://www.engage.sagepay.com/yule-be-sorry

Notes

At the same time, Sage has also carried out a global survey which found that world’s small & medium business owners have contributed $8.3 trillion to the global economy by working beyond the standard industry hours for their businesses.

The survey highlights the human sacrifice made by small & medium business owners to power the global economy. Over half of all business owners (66%) say the extra hours are worth it. The research has also highlighted the true sacrifices made by entrepreneurs around the world as over a third (36%) of those surveyed say they have sacrificed family time for their businesses.

Stephen Kelly, CEO of Sage comments: ‘We know it takes hard work and human sacrifice to turn a dream business idea into a way of life. We should do all we can to support these heroes and recognise all those hours of hard work they are putting in after the rest of the world has gone home’.

Research methodology

The Cyber Monday research was conducted among 1008 UK consumers. The interviews were conducted online by Redshift Research in October 2015 using an email invitation and an online survey.

The small business survey was conducted among 2621 BDMs in companies with under 100 employees in 11 countries. The interviews were conducted online by Redshift Research in November 2015 using an email invitation and an online survey.

About Sage Sage energizes the success of businesses and their communities around the world through the use of smart technology and the imagination of our people. Sage has reimagined business and brings energy, experience, and technology to inspire our customers to fulfil their dreams. We work with a thriving community of entrepreneurs, business owners, tradespeople, accountants, partners, and developers who drive the global economy. Sage is a FTSE 100 company with 14,000 employees in 24 countries. For more information, visit www.sage.com.

About Sage Pay

Sage Pay is the UKI’s leading independent payment service provider (PSP) and is one of the most trusted payment brands. Every year Sage Pay processes billions of pounds worth of secure payments for its 50,000+ customers and makes the process of accepting payments online, over the phone, or in person simpler, faster, safer and more profitable for businesses.

Sage Pay is a subsidiary of FTSE 100 business management software and services company The Sage Group plc. For further information please visit: www.sagepay.com

This was posted in Bdaily's Members' News section by Sage .