Shoppers Confess to Busting Christmas Budgets

Intersperience Survey Explains Recent Surge in Retail Sales

LONDON, January 18 -

    - 1 in 3 shoppers exceeded Christmas budgets
    - Older generation keener than younger people on internet shopping
    - Half of online buyers experienced problems

One in three consumers confessed to blowing their Christmas shopping
budgets in 2009, dashing their good intentions for a frugal celebration,
according to a survey by international consumer research specialist
Intersperience.

The survey, which analysed the shopping habits and attitudes of UK
consumers, found that 33% of people who had intended to stick to a spending
limit for Christmas gifts failed to do so. Food and drink proved a major
indulgence, with 27% exceeding their pre-set budget for festive fare.

Intersperience, an expert in consumer behaviour, questioned shoppers on
their spending intentions before Christmas and afterwards to discover whether
they had stuck to their plans. The survey presents fresh insight into the
dynamics of the retail sector following a string of positive Christmas
trading statements from major store groups.

Intersperience Chief Executive Paul Hudson said: "Despite buoyant
Christmas trading statements from many retailers there is still a good deal
of uncertainty over the mood of Britain's shoppers. Our survey delivers
much-needed insight and really gets under the skin of customers. We analysed
what drives them to make particular purchases and where and how they shop."

The survey showed that fewer consumers spent money online than they had
anticipated over Christmas, influenced by strong concerns over stock
shortages and delivery delays. In fact, half of respondents reported delivery
or stock availability problems with internet orders.

The survey also found that the older age group were keenest on online
shopping and reported higher use, higher spend, greater motivation and fewer
problems with shopping online this Christmas than younger people.

Overall, shoppers were evenly split on whether they prefer online or high
street shopping, with 18 to 24 years olds showing a preference for in-store
browsing and purchasing while the older generation were more likely to use
the internet, particularly for goods such as books and DVDs.

Convenience, price and speed were cited as the main attractions of online
shopping. Word-of-mouth rather than consumer review and price comparison
sites remained the strongest influence on spending decisions.

The survey found that internet shopping is still regarded as cheaper than
the high street - but the high street offered better value than people had
expected.

Paul Hudson said: "For a long time online prices were regarded as
considerably lower, providing a key driver for internet shopping. However, we
are seeing signs that the price gap may be closing."

NOTES TO EDITORS

About the Intersperience Christmas Shopping Survey:

Intersperience conducted a comprehensive survey of shoppers in the UK on
their spending and shopping habits in the week before Christmas 2009 and the
following week. The survey used quantitative and qualitative research methods
to analyse spending and shopping behaviour and includes consumers' views on
online retail experiences, shopping on the high street, in superstores, or
via mail order. It includes data on the impact of social networking and 'Web
2.0' on consumers and analysis of differences in the behaviour and
preferences of consumers aged 18-24 and those aged 25 and above.

Intersperience Chief Executive Paul Hudson is available for interview.

    Photographs are also available upon request.

    Media Contact:
    Roland Main tel +44(0)7930-273249
    Email Roland@second-city.com

About Intersperience:

Intersperience is an international consumer research specialist with
expertise in consumer behaviour, experience and attitudes. The team, which is
headquartered in Cumbria, has more than 25 years experience in analysing
consumer behaviour. It employs a range of interpretative models and
frameworks including a proprietary online research platform. Intersperience
has significant global expertise and an international research hub at
Lancaster University which conducts research in more than 60 languages as
well as associates in major global markets. Intersperience is an expert in
how technology impacts on consumer behaviour and multi-channel customer
service strategy. Clients include: The British Council; General Motors;
Iceland; Samsung; ScottishPower; and William Hill.

    For more information:
    www.intersperience.com
    Tel: +44(0)15395-65450T

Media Contact: Roland Main tel +44(0)7930-273249, Email Roland at second-city.com; For more information: www.intersperience.com, Tel: +44(0)15395-65450T