New data from Adobe reveals that UK shoppers spent £24.4 billion over the holiday season (November 1 – December 31). This figure was up 3.7% YoY, with the majority of spend focused around major discounting days Black Friday, Cyber Monday and Boxing Day. The holiday spend brought online spending in 2023 up to £111.2 billion. The data also shows that UK consumers spent £3.3 billion using Buy Now Pay Later (BNPL) services over the season. This takes the total amount spent using BNPL in 2023 to £16.8 billion.
Vivek Pandya, lead analyst, Adobe Digital Insights suggested, “It was a slow start to 2023 from an online spending perspective. Our data shows spending accelerating towards the end of the year. Peaking over the holiday period to end the year on a high. Overall, online spending grew by 3.7% in 2023 compared with 2022. However, much of this growth is propped up by deep discounting from retailers. In addition to growth in the use of Buy Now Pay Later services showing consumers are keeping a close eye on their finances.”
The data from Adobe’s Digital Economy Index also reveals:
Holiday season – YoY
A total of £24.4 billion was spent online during the holiday season (November and December). The biggest spending days of the holiday period (and 2023 as a whole) were:
- Black Friday – £1.04 billion, +4.1% YoY.
- Cyber Monday – £881 million, +7.4% YoY.
- Boxing Day – £461.8 million, +4.4 YoY.
On average, online prices were discounted in the range of 11% when compared with pre-holiday season levels. The deepest discounts fell on Cyber Monday in TVs (19% cheaper), computers (24% cheaper), apparel (17% cheaper) toys (16% cheaper).
The most popular products in 2023 included: Cookware sets and small kitchen appliances, personal care products like face creams and lotions, jewellery, puzzles and card games, Jellycat stuffed toys, micro scooters, Bluetooth headphones, smart home items, travel and handbags, coffee machines, perfumes and video games and consoles.
In London, a total of £3.5 billion was spent online during the holiday season (November and December). This was up 5.8% YoY. The highest spending days were:
- Black Friday – £251 million, +4.6% YoY.
- Cyber Monday – £158 million, +8.6% YoY.
- Boxing Day – £64 million, +9.3% YoY.
December – YoY
- In December 2023, a total of £11.2 billion was spent online – +1.5% YoY.
- UK shoppers spent £1.6 billion through Buy Now Pay Later services in December – +3.7% YoY.
- In London, a total of £1.5 billion was spent online during December – +3.2% YoY.
On average, online prices were discounted 9% when compared with pre-holiday season levels, with the deepest discounts for computers (14% cheaper).
2023 full year – YoY
• A total of £111.2 billion was spent online during 2023 – down 1.3% YoY (2022 was £112.7 billion).
• UK shoppers spent £16.8 billion through Buy Now Pay Later services in 2023 – up 12.8% YoY.
Buy now pay later
UK shoppers spent £3.3 billion through Buy Now Pay Later services in November and December. This accounted for 13.5% of total online spending and up 12.7% YoY. The highest spending days for Buy Now Pay Later usage were:
- Black Friday – £101 million, +4.7% YoY.
- Cyber Monday – £148 million, +17.6% YoY.
- Boxing Day – £54 million, +10% YoY.
The major shopping days like Black Friday, Cyber Monday, and Boxing Day showed stronger growth, especially because they boasted some of the deepest discounts of the season. Buy-Now-Pay-Later growth remained strong in November and started to slow down as we got further into December, while we saw a 3.7% YoY growth for online retail where holiday growth was at -6.1% in 2022 and -2.3% in 2021.
Methodology
The Adobe Digital Insights team used Adobe Analytics to analyse hundreds-of-millions of visits to retail sites from UK consumers over the holiday season, tracking the prices of 100 million SKUs across 18 product categories to provide the most comprehensive view of the UK digital economy. Adobe Analytics is part of Adobe Experience Cloud, relied upon by major retailers to deliver, measure, and personalise shopping experiences online.
Enterprise Times: What this means for businesses
The Adobe Digital Insights continue to highlight the changing shopping behaviours of UK consumers. While overall online spending saw a marginal decline of 1.3% year-over-year, the data also saw a 12.8% increase in UK shoppers utilising Buy Now Pay Later services. This amounts to £16.8 billion in 2023. This is the key headline showing the growing adoption of BNPL, as consumers seek out flexible payment methods. This is not surprising. Economic times are tight for consumers, who look to extend payment over a longer period of time. As a result, they are looking after the pennies.
