Boxing Day sales are increasingly being outshone by November spending, which includes discount events Black Friday and Cyber Monday, as people choose to get their shopping done a month before Christmas, rather than during the festive holiday.
With the Christmas holidays dominated by parties, feasting and hangovers, more and more people are getting organised with their Christmas shopping so that they don’t have to worry about a last minute dash around the shops on Christmas Eve, or face the Boxing Day sales to find belated gifts.
Hitachi Capital Consumer Finance has tracked personal loans and credit taken out with retail partners including John Lewis and Amazon among others to understand when more loans are being taken out for big purchases.
Tracking the approved loans shows that 16% more loans were taken out between 15 Nov and 30 Nov than between 15 Dec and 30 Dec last year. The total loan amount taken was 35% higher in the last two weeks November than in the same fortnight in December.
What’s more, this year, loans taken out in same period in November are 11% higher than 2015, suggesting that more people than ever are getting organised earlier with their Christmas shopping. People have also reached higher with their spending ambitions this year, with the total loan amount for the last two weeks in November 17% higher than the same period in 2015.
Gerald Grimes, managing director of Hitachi Capital Consumer Finance, said: “People are becoming increasingly organised, preferring to make big purchases ahead of the Christmas season so that gifts and treats arrive in time to be enjoyed over Christmas and they don’t break the bank come December. With the December payday arriving earlier than in other months for most, people have wised up to the need to preserve funds over the long six week stretch until the end of January, and instead do their sales shopping in November rather than splurge over Boxing Day.
“We’ve seen a big rise in both the number of loans taken out in November and the amount being borrowed. It’s fairly likely that we will see a wider spending gulf between November and December this year compared to last year, given that more people are making big purchases in November.
“With great deals to be had over the Boxing Day sales period, people who’ve spent hard in November shouldn’t have to deprive themselves of post-Christmas shopping and treating themselves after spoiling friends and family. A range of responsible lending options mean that shoppers can have the best of both worlds.”