Designated by the hallmark and class Christmas albums playing on loop repeatedly in all avenues and outlets and the glistening Christmas decorations immersing us all in the lively spirit, it is at last that time of year again. Internationally regarded as the ‘Season of Giving,’ the rituals and traditions of the Christmas period are historically rooted in tradition defined by reciprocation and community support. However, given the increasing and sophisticated advent of e-commercialisation and corporate advertisement behind the notion of finding the 'perfect' gift, the nature of the Season of Giving has seen rampant change. In this piece, consumption dynamics surrounding the Christmas period are further explored, providing a greater understanding over how the festival has changed its ways of being celebrated over the years.
The Degree of Exponential Consumption during Christmas in the UK
As a hallmark of the largest UK holiday season and a central feature of the annual calendar, it is imperative to determine the firms maximising their success and subsequent revenues driven by this significant increase in consumption. UK households spend approximately £713 more during the Christmas period in comparison to their average monthly expenditure. This increase has been bolstered by promotional initiatives such as Black Friday and Cyber Monday schemes, which are a tempting method for earlier gift purchases.
E-Commercialisation and Online Purchases: The Advent of Convenient Retail
While a large degree of shopping still takes place physically and in person due to a wide range of customer preferences and the opportunity for product interaction, e-commerce and online retailers have widely revolutionised the retail landscape. This is exemplified by the growing proportion of Christmas shopping being completed online, with the value of e-commerce more than doubling over the past decade. Online retailers like Amazon have consistently capitalised on the Christmas period, achieving record-breaking profits in recent years reaching around 14%. Particularly for online stores, sales for household items, toys, clothing, and technology thrive during the festive period, as the desire for household essentials, functionality, and the spirit of giving drive significant consumption.
Food and Beverage Consumption: The Performance of Supermarkets
Supermarkets are one of the most fundamental sectors in terms of revenue maximisation during the Christmas period, offering traditional specialities ranging from mince pies to fig puddings. The largest UK supermarket chains dedicate significant focus to their performance over the festive period, achieving notable increases in sales growth. For instance, Tesco achieves a 6.4% increase in sales from November 2023 to January 2024, largely driven by the Christmas shopping period. Industry giant Lidl too reported that the Christmas sales of 2023 were its highest since 1994. The demand for food stems from celebrations with community and family, combined with the encouragement of generosity and abundance. Food is enjoyed as a sign of gratitude and indulgence during this central festive period. Beyond emotive storytelling advertisements, intelligent in-store discounts and promotions also draw consumers, resulting in a significant proportion of items being purchased with offers. Supermarkets particularly benefit from increased demand for their premium own-brand products, contributing to strong growth in market share.
Psychological Determinants of Consumption during the Festive Period
As individuals, the change in purchasing priorities during Christmas is dramatic, influenced by the desire for a warm and inviting celebration, managing family gatherings, and respecting traditions. There is also an indirect pressure to ensure friends and relatives are impressed, which plays a significant role in driving consumption. These factors are so powerful that even environmentally conscious individuals often adjust their priorities when selecting Christmas decorations, trees, and foods. The rise of social media has further heightened this phenomenon, with platforms inundating users with posts of expensive gifts, idealised family gatherings, and perfectly decorated homes, creating an ideation of the Christmas period which is unachievable for many. This is particularly challenging in light of the UK’s rising cost of living, which has significantly impacted household budgets and purchasing power.
Conclusion
The Christmas period is undoubtedly one of the most significant drivers of individual and corporate consumption and production. It is a powerful shifter of psychological priorities and economic activities within the UK economy. While promotional strategies emphasising scarcity and savings play a key role in encouraging overconsumption, the broader festive culture remains central to consumption patterns. Supermarkets and online retailers, in particular, benefit from this periodic surge in spending, reflecting the deep-seated social, economic, and psychological dynamics associated with the festive season.
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