Online spending has been challenged in the UK in recent years but a new report says that spend will beat last year’s Christmas outlay by as much as £1.1 billion.

New analysis, by Experian and Reward, shows key shopping trends ahead of crucial ‘Golden Quarter’ and one of the major insights is that Briton’s are set to spend £28 billion online during the Christmas shopping period.

In fact, they’re also likely to do more of their Christmas shopping online this year than in previous years.

The information is based on transaction data from over 4 million UK cardholders across more than 4,000 retail brands, which found that year-to-date online spending rose by 4% compared to the same time in 2023, with in-store purchases falling by 2%.  

That’s certainly interesting given that the aforementioned challenges online retail has faced since the pandemic have seen shoppers shifting back to physical retail in unexpectedly high numbers.

That said, the festive season has increasingly had a heavy online focus in the past decade and the report said that if the current upward online trend continues, UK retail from November to January should see that £1.1 billion boost.

Beyond online and in-store sales, looking at year-to-date spending compared to the same period last year, the research highlights key shopping trends that have defined 2024 and are likely to shape how Britons approach Christmas gifting this year.  

A major trend is sustainable shopping with analysis showing shoppers increasingly turning to secondhand products. A comparison of transactions at online secondhand marketplaces showed a 21% increase in year-on-year total sales.   

And it’s perhaps particularly significant that growth is being driven by older age groups as well as the young. Shoppers aged 45-54 and 55+ are leading the surge, with sales for them climbing by 56% and 59%, respectively, over the past year.  

And if spending at secondhand retailers continues at current rates, the sector could be set to generate £363 million in the Golden Quarter, an additional £111 million. 

Social commerce is also booming. The report said that comparing August sales year-on-year, spend insights show an impressive 32% jump. Again, if the trend continues, it could mean a £212 million boost to the sector this Golden Quarter “as highly influenced shoppers are drawn to Christmas deals while browsing their feeds”. 

Unfortunately for those selling physical products, there’s also a trend towards experiences rather than goods. Spend on ticketing websites, for instance, is up 9% with consumers aged 35-44 increasing their spending on tickets by 10% in the last year compared to just 4% for those aged 18-34.