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Department Stores Are The Top Choice For Gifting

As struggling department store retailers such as Debenhams, House of Fraser and Marks & Spencer close stores, other retailers should position themselves to gain a share of the gifting spend, says the latest report from GlobalData, a leading analytics company.

The report, All Year Gifting, highlights that 44.9% of consumers who purchase a gift for birthdays, engagements, weddings and babies buy from a department store, with Debenhams the eighth most popular retailer for purchasing gifts, and John Lewis in tenth place. The top spots are held by Tesco and Amazon.

The report emphasises that as most Debenhams and House of Fraser shoppers are now unlikely to have a branch nearby, the retailers needs to focus on persuading shoppers to purchase online with them after their store closures. Failure to do this could mean that supermarkets and Amazon will be well positioned to steal this gifting spend from department stores.

 

Above: Debenhams is among the retailers closing stores.
Above: Debenhams is among the retailers closing stores.

“The popularity of department stores is bolstered by the presence of branded products across a number of sectors, more premium items and a perception of being an appropriate location to purchase gifts for special occasions,” comments Emily Salter, a retail analyst for GlobalData. “Department stores are the most popular for purchasing gifts for weddings and engagements, as quality is the most important driver of retailer choice, and gift recipients direct purchasers to department stores due to the presence of gift list services.”

Continued Emily: “Supermarkets are in a good position to capture gifting spend as they already offer a wide range of products at low prices, but to entice more shoppers, they must improve their reputation for good quality. Amazon is set to grow in popularity due to the appeal of its often lower prices, vast product range and the convenience it offers, especially to its Prime members.”

 

Top: Tesco is among the top choices when it comes to gifting reveals All Year Gifting, a new report from GlobalData.

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