Christmas is expensive, we know this – it always has been. However, with inflation on the rise and with average household incomes shrinking, the pressure on shoppers to spend frugally in preparation for the big day is mounting.

The cost of Christmas

This year, the cost of Christmas has risen 10% above inflation, making stocking up on food and gifts progressively difficult for consumers; groceries alone have risen by 1.2%. As a result of this increasing cost many shoppers are spending less overall with a 0.1% decrease in expenditure from October to November 2012, and the high street is beginning to feel the pinch.

The rise of online shopping

Conversely, with shoppers becoming more savvy online retailers and eMoney services such as ukash are reaping the benefits.  Cyber Monday on the 3^rd of December saw 112 million visits to retail websites in the UK with traffic up by 20% from the previous year and 20% of consumers using mobile as their device of choice – a solid indication that the shift from high street Christmas shopping to online is becoming ever more cemented.

Chief information officer Tina Spooner at the UK’s industry association for e-retail, Interactive Media in Retail Group (IMRG) gave insight into the evolving consumer shopping behaviour: “What we are seeing in this 20% mobile forecast is a shift in the way consumers interact with brands online. While it is still common for consumers to browse the shops at weekends before making the final purchase online at Monday lunchtime, we are increasingly seeing the popularity of ‘second-screening’, where people browse on their mobile devices in front of the TV.”

Embracing eMoney

Furthermore, eMoney services such as ukash are perfectly placed to attract the attention of cash conscious Christmas shoppers in the current climate with their array of benefits. The convenience, visibility, security and compatibility with a multitude of online sites make the ‘electronic purse’ an increasingly attractive alternative to braving the high street with a credit card in hand.

Overall, this shift towards online services and retailers comes as consumers become further immersed in the digital space, online customer service becomes slicker and the rise of price comparison sites ushers consumers to search for better deals. This combination of developments leads to a natural progression towards a reliance on electronic purchases for convenient and perhaps more crucially – cost effective shopping online.

About the author: Charley Caines writes on behalf of eMoney provider ukash. Ukash are a global provider of electronic cash services, operational in over 55 countries with over 420,000 outlets; offering safe, secure and convenient electronic currency services. For more information you can click here http://www.ukash.com/en-GB/.