Looking Ahead... Webloyalty's Easter Retail Research 2014

LOOKING AHEAD…
EASTER RETAIL TRENDS
WEBLOYALTY & CONLUMINO
MARCH 2014

Introduction
© 2014 Webloyalty & Conlumino
enquiries@webloyalty.co.uk | 020 7291 8720
Looking ahead ... Easter
March 2014
Webloyalty
19-21 Great Portland Street W1W 8QB
020 7291 8720
enquiries@webloyalty.co.uk
www.webloyalty.co.uk
Conlumino
7 Carmelite Street, London EC4Y 0BS
020 7936 6654
hello@conlumino.com
www.conlumino.com
This research has been commissioned by Webloyalty to provide retailers with
insight into the current trading environment as well as some more specific insight
around the Easter occasion.
About Webloyalty
Webloyalty is a leading reward programme provider working with major online retailers to help them
build stronger, more profitable relationships with their customers. Through our membership
programmes, such as Complete Savings and Shopper Discounts & Rewards, we help our online retail
partners’ customers save hundreds of pounds a year while providing the partner with an additional
revenue stream. As well as incentivising customers to make repeat purchases at the partner’s site, they
can also earn cashback and get great deals on everything from fashion to electronics to travel at hundreds
of top online stores.
Webloyalty was established in the UK in 2007 and has since expanded into France, Germany, Spain, Italy,
Ireland, Brazil and the Netherlands.
About Conlumino
Conlumino is a retail research agency and consulting firm. Our work focuses on all aspects of retailing
and consumer behaviour, which we deliver through bespoke reports, projects and presentations. We
work with many of the world’s leading retailers, property firms and those in the financial sector to help
them maximize success through developing a thorough understanding of the sector and its likely future
performance.
Foreword

Introduction
March 2014
Summary
The economy
GDP growth, falling unemployment
and a buoyant housing market point
to a burgeoning recovery in the
British economy. Although the
newfound optimism is to be
welcomed, it should be viewed with a
note of caution.
On the surface the rapidly falling
levels of unemployment are a success
story, but stagnant wage growth and
low productivity levels mean that
inflation remains high, while there is
a danger that the recovery is
unbalanced and over-reliant on
consumer spending. There are also
fears that the government’s Help to
Buy scheme is leading to
unsustainable growth in property
prices. Stronger growth in the export
market will dampen speculation that
the recovery rests on weak
foundations.
Retail trends
Squeezed household budgets have
created a tough environment for
retailers. Widespread inflation in
essentials like food and household
bills mean that disposable incomes
remain low. The by-product of this is a
discounting culture with shops
competing to offer the best value in
the hope of boosting sluggish
volumes.
Competition in retail is rife and this,
along with advances in technology is
fuelling a growth in innovation as
retailers strive to keep up with
changing shopping habits. Whether it
be multichannel advances, ever more
convenient fulfilment options or
instore technology, retailers across
the spectrum are having to re-
evaluate their offers to retain
relevance and stay one step ahead of
the competition.
Sentiment
While views on the economy have
become increasingly positive in
recent months, the same cannot be
said of consumers’ views on their
own personal finances.
Unemployment may be down, but
wages are not increasing and
inflation in the cost of living remains
persistently high.
Perhaps, even more worringly, there
is a wide regional variation in
consumer sentiment with much of
the optimism about the economy and
personal finances being driven by the
more affluent South. To some extent
this bears out fears that the recovery
is overly focussed on London to the
detriment of other parts of the UK.
Consumer data
Our consumer survey indicates rising
levels of apathy towards Easter, with
many viewing the occasion as over-
commercialised. In spite of this, the
popularity of typical Easter products
endures, with hot cross buns and
Easter eggs the top products
consumers intend to purchase. In the
Easter egg market, brands still have
the edge, with own-brand eggs facing
a challenge to catch up.
Reflecting the general lack of
enthusiasm for Easter, planned
activities are decidedly low-key. It
may not be party season, but the
Easter Sunday meal is still likely to
take centre stage, with chicken and
lamb heading up many consumers’
shopping lists.
2014 has arrived with plenty of scope for optimism in the retail
sector. On the economic front, housing transactions are up,
unemployment is down and a general feeling of optimism is
pervading the economy and consumer sentiment that has not been
seen since the recession began to bite.
With the Easter bank holiday sales period on the horizon, greater
momentum in the housing market will be particularly welcome
news for home and furniture retailers for whom such periods are
critical. Positive movement in the January sales certainly bodes
well for more good news over Easter.
Looking ahead
to Easter 2014
Tough times are still ahead for retailers though. Soaring
household bills and sluggish wage growth mean household
budgets continue to be squeezed. Retailers are having to work
harder to encourage spend resulting in widespread shop price
deflation, with discounting and promotions rife.
Trading in the early stages of last year was hit by unseasonably
cold weather, but with the crucial Easter weekend falling a few
weeks later this year, in April, and no sign of a cold snap as yet,
gardening and outdoor living retailers in particular will be
crossing their fingers for a sunny spring ahead.

Economic update
Current state of retail economy
2014

Economic update
Page
5
2014
March 2014
The economy and consumer sentiment
Auspicious signs
Following one of the longest and deepest recessions on record,
signs of recovery, however modest, are extremely welcome.
Certainly the early stages of 2014 have already shown up some
auspicious indicators with falling levels of unemployment, rising
GDP and even a long-awaited slowdown in inflation. Indeed the
Office for Budget Responsibility (OBR) forecasts GDP growth of
2.4% for 2014, although real GDP is still 2% below its 2008 peak.
An unbalanced economy?
The UK economy grew by 0.7% in the third quarter of 2013,
making it one of the fastest growing of the major world
economies. Nevertheless, fears remain that the recovery is an
unbalanced one, over-reliant on consumer spending, fuelled by
unsustainable house price growth and financed by a sharp fall in
the savings rate.
Falling productivity
In August 2013, the Bank of England’s Monetary Policy
Committee stated that it would not raise interest rates until the
unemployment rate fell below 7%. It was assumed that this would
not occur until at least 2016, an assumption that was based on the
notion that growth would be driven by improving productivity.
However, stubbornly high inflation and the rapid fall in
unemployment, to 7.1% in January this year, suggest that in fact
productivity has weakened.
It is in part this lack of productivity that explains why the UK
has experienced such stagnant growth in real wages, leading
to one of the longest declines in living standards in 60 years.
Low productivity is especially worrying as it could result in the
recovery running out of steam thanks either to a spiralling
burden of debt or the BOE being forced to raise interest rates to
head off the pressure of inflation. The latter in particular
would have an immediate dampening effect on retail spending
growth.
Current account deficit worryingly high
Further cause for concern comes in the form of the UK’s poor
performance in the export market. A current account deficit of
5% of GDP suggests that import spending greatly exceeds
exports; a trend that is both unsustainable in the long term
and could lead to the devaluation of the pound. The challenge
facing the UK economy lies in rebalancing the recovery away
from consumer spending by boosting export growth. There are
signs that exports to emerging markets are on the increase
though the UK still lags behind many other Western European
economies in this regard.
Over the next few pages we will take a more in depth look at
some of the key issues in the UK economy and consumer
sentiment and how they are likely to impact upon retail.
Signs of modest recovery but there are likely to be bumps in the road ahead
Positive indicators may be masking the true state of the UK economy as fears emerge over an unbalanced recovery

Economic update
Page
6
2014
March 2014
With wage growth remaining stagnant during the
recession, rising inflation levels have placed a significant
strain on consumer finances.
Persistently high inflation in the cost of living, particularly
in areas such as household utility bills has eroded
household budgets to such an extent that retailers are
having to discount heavily to stimulate demand. In
January the BRC unveiled figures which showed that shop
prices had fallen for the ninth consecutive month with the
sharpest rate of deflation since December 2006.
Furniture, clothing and electricals all witnessed
significant price softening while even in the food sector,
which has spearheaded retail inflation in recent years, the
rate of inflation slowed down.
What does it mean?
Stable commodity prices and favourable forecasts
going forward are helping retailers to keep prices
down, but until the economic recovery filters
through fully to the level of consumer finances
and the cost of living begins to fall, retailers are
likely to have to continue to take a hit on their
margins .
In the grocery sector falling consumer loyalty and a
greater propensity for consumers to shop around in
search of the best deal is forcing more established retailers
to re-evaluate their proposition in the face of rising
competition. Last year Tesco unveiled its vision for the
future of big box retail, while Asda will attempt to combat
its lack of physical presence in the convenience market
with an ambitious strategy to broaden its click & collect
offer.
As the high street comes under increasing threat from
online retailers, Argos is busily undergoing its
transformation to a digital retailer, whilst across the board
retailers are beefing up their multichannel competencies.
Retailers, like Dunelm, are also looking at greater direct
sourcing and better space management to boost flagging
margins.
What does it mean?
In the context of this squeeze on consumer
finances, retailers are finding volume growth to be
an elusive commodity. As the fight for consumer
spend becomes increasingly hard fought, this in
turn is fuelling innovation.
Shop price deflation as retailers compete
to stimulate demand.
A competitive market is forcing retailers to
innovate.

Economic update
Page
7
2014
March 2014
In comparison with the recent slowdown, the housing
market is buoyant: 2013 saw a considerable rise in
mortgage transactions in an indication both of strong
demand and a willingness of banks to provide finance,
while house prices have risen nearly 8%.
The strength of the housing market is also its biggest
weakness, however, with real fears that rising prices are
causing many properties to be unaffordable, particularly
in regions of persistently high demand such as London
and the South East. There are warnings that the price rises
are unsustainable with the government’s Help to Buy
scheme fuelling a housing bubble, while interest from
wealthy foreign investors in the London property market
may be propping up prices.
What does it mean?
Greater momentum in the housing market should
provide a long-awaited boost for home and
furniture retailers that have been particularly
hard hit by the recession. While this has
inevitably been helpful, the pace of housing
growth in many regions remains sluggish by
historic standards.
In January this year UK unemployment fell to 7.1%, close
to the threshold at which the Bank of England has
suggested it would raise interest rates.
There are concerns though that the manner in which this
low rate of unemployment has been achieved owes much
to a rise in part-time employment and the popularity of
temporary contracts, whilst at the same time there is a
generally higher level of job insecurity in the market
together with falling productivity.
Added to this, the pattern of falling unemployment is far
from uniform and pockets of high unemployment are
particularly prevalent in the North of England, the inner
cities and amongst young people.
What does it mean?
It may be a flexible labour market that has led to
the rapid fall in unemployment but jobs are still
jobs and higher rates of employment will boost
household incomes and improve consumer
sentiment. Worryingly low levels of productivity
mean that wage growth remains sluggish,
however.
Housing market momentum, but fears of a
house price bubble.
A dramatic fall in unemployment, but is
that the whole story?

Economic update
Page
8
2014
March 2014
Key economic indicators
2014 compared to 2013
Economic
indicators
2013 2014
Gross Domestic
Product growth (%)
1.4% 2.4%
Since the end of 2012, the economy has shown some signs of life with modest GDP growth
and a rise in consumer sentiment. While this appears to be sustainable, and is welcome, the
magnitude of the pick-up is shallow.
Unemployment (ILO
definition – Q4 %)
7.6% 7.1%
Despite pressures on government expenditure having a negative impact on public sector
employment, there are signs that, for the time being at least, the private sector is largely
picking up the slack.
Inflation (CPI – annual
%)
2.6% 2.4%
Persistently high inflation, particularly for food and energy, which represent such a significant
proportion of overall consumer expenditure, will continue to put household budgets under
pressure.
Interest rates 0.5% 0.5%
With the recovery looking shallow, interest rates are highly likely to remain stable for the
foreseeable future.
Disposable income -0.2% 0.3%
While wage growth continues to pick up, disposable incomes continue to be held back by
high inflation.

Economic update
Page
9
2014
March 2014
•  However, views on personal financial circumstances have not
fared quite so well. Notably, in recent months, views on the
overall economy have become stronger than views on
personal financial circumstances. This is a reversal of the
position we have seen during most of the downturn.
•  There are numerous factors making consumers less certain
about their personal finances. Foremost among these is high
inflation which is squeezing disposable incomes.
-32.1
-53.4 -51.3
-48.3
-40.8 -39.2 -37.7
-20.9
-36.9 -37.8
-45.0 -43.9 -43.1
-28.0 -26.0
-28.8
-6.0 -7.3 -9.2
-3.5
-6.3
-2.0
7.1
-14.3
-31.4 -29.3 -30.7
-27.7
-23.3 -25.3
-21.0
-27.9 -28.7 -29.0
-32.0
-29.6
-24.9
-22.0 -24.0
-17.3 -19.5 -19.9
-18.6 -21.0 -18.6
-10.7
-60
-50
-40
-30
-20
-10
0
10
20
•  Aside from more general economic indicators, one of the most
important considerations in terms of the future strength of retail
is how the consumer feels.
•  Positively, views on the future of the overall economy have seen
some solid improvements over the past few months. This outlook
has been fuelled by the more affluent regions and higher social
classes in particular.
Consumer sentiment swings to positive
Personal finance continues to be a concern
Consumer confidence index
All figures are an index created by taking those who say things will improve and subtracting those who think things will get worse
Index on personal finances: how do you think your own personal financial circumstances will change over the next 6 months?
Index on the general economy: how do you think the economy will change over the next 6 months?

Economic update
Page
10
2014
March 2014
UK’s North South divide shows in consumer confidence
Views by demographics and region
While overall consumer sentiment now finds itself in positive territory,
it is men as a whole who are driving this consensus with their more
positive outlook on the economy. Conversely women, who are
traditionally more involved with more non-discretionary purchases,
are notably more pessimistic about the economic future.
Affluent consumers have a much greater positive economic outlook
than those people with less. The latter will be experiencing a much
tighter squeeze on their disposable income, as their levels of
discretionary purchases are expected to rise.
There are also strong regional differences in future economic outlooks.
Unsurprisingly, regions associated with tougher macro-economic
climates are less optimistic. The South has higher levels of disposable
income, and non-discretionary purchases will affect them less, leading
to more positive economic projections.
Gender
Affluent and not so affluent
Region
Women
-2.5
Men
+18.4
DE*
-0.8
C1+C2*
+10.7
AB*
+20.4
+4.0
North
West
+12.2
London
+13.2
South East
+11.9
South
West
-17.2
North East
Despite the overall economic outlook being quite positive, the
view is not universal. Here we take a closer look at consumer
sentiment across a range of demographics.
All numbers refer to the overall economic index; the average score for views on the
future of the general economy in January. The overall average index for this is +7.1.
A             High managerial administrative or professional
B             Intermediate managerial administrative or professional
C1           Supervisory clerical and junior managerial administrative and professional
C2           Skilled manual workers
D             Semi and unskilled manual workers
E              State pensioners, casual or lowest grade workers and unemployed
*

Economic update
Page
11
2014
March 2014
•  One of the factors weighing negatively on
consumers’ minds when it comes to personal
financial circumstances is the prospect of future
inflation.
•  The large majority of consumers still believe
that many, non-discretionary areas of spend
(like utility bills and food) will rise sharply in
the next six months.
•  This expected rise in essential living costs will
inevitably erode disposable income. It is no
surprise that consumers’ views on future
personal finances are relatively bleak.
•  Although consumers are less pessimistic about
discretionary areas of spend, such as electronic
gadgets and homewares, they still believe that
these things will be generally inflationary.
5.4
Petrol or
diesel
Food
Clothing
Electronic
gadgets
Homewares
54.9
3.1 63.5
5.7 30.9
11.3 25.7
4.7 24.1
Expecting
a fall (%)
Expecting
a rise (%)
Household
utility bills
2.9 66.4
-49.5
-60.4
-25.2
-14.4
-19.4
Net
difference
-63.5
Personal circumstances still weigh negatively on consumers’ minds
The squeeze continues
Percentages of consumers expecting a rise and fall in prices across certain products and
services over the next six months.

Easter 2014
Page
13
March 2014
Easter trading tips for retailers
1 Multi-buy offers are key
Food is central to the Easter festivities and the holiday presents a significant opportunity for supermarkets. With the grocery
sector becoming characterised by falling loyalty in the wake of the recession, one way to boost basket sizes may be to offer
multi-buy deals on products featured in traditional Easter recipes such as the meat and vegetables of a traditional Sunday
roast. Waitrose has taken this one-step further by offering deals on ingredients featured in recipes from celebrity chef,
Heston Blumenthal. Focussing the campaign on a recipe in this way provides consumers with encouragement and guidance
to invest in less familiar ingredients. In 2013 the campaign for Heston’s Easter roast lamb featuring a recipe inspired by his
boyhood memories of holidaying in Provence boosted sales of anchovies by 400%. With more than half of consumers in our
survey (52.1%) typically waiting for multi-buy deals before purchasing Easter eggs, combining promotions in this way looks
like a recipe for success.
2 Harness social media
In recent years supermarkets have been receiving plaudits for the quality and value for money of their own-brand Easter
eggs, yet despite rising Easter egg prices, own-brand eggs still lag far behind branded eggs in terms of popularity. Marketing
is certainly one area where there is room for improvement. The success of Cadbury’s “Have a Fling with a Creme Egg”
Facebook campaign shows that perhaps social media may be a good platform to boost consumer awareness of own-brand
eggs. The key lies in making the content interactive and engaging, employing a campaign slogan ideally with a hashtag to
encourage trending and build momentum around the brand together with a clear narrative to weave the campaign story
together.
3 Bring technology into stores
Providing instore technology is another way for multichannel retailers to stand out from the crowd. For example,
Augmented Reality enables retailers to bring static catalogue and instore imagery to life with the help of smartphone apps
and provides a way for customers to gain access to extra content, making the shopping experience more fun and interactive.
In 2013 Asda employed this to good effect with an Augmented Reality Easter Egg hunt in over 400 of its stores using the
Asda mobile app.
4 Encourage family fun
The Easter period is critical for gardening and DIY retailers, yet shopping for DIY products is hardly the most entertaining or
glamorous activity. The leisure mix in out of town retail parks has improved markedly in recent years, but retailers could
still do more to appeal to families looking to combine shopping for their homes and gardens over the Easter period with a
family day out. B&Q for example, has experimented with offering classes aimed at children over the Easter weekend,
including one which involved assembling a wooden Easter egg holder.

Easter 2014
Page
14
March 2014
Easter trading tips for retailers
5 Keep a handle on your supply chain
In such a competitive market place with competing promotions forcing prices down, retailers must do all they can to protect
those precious margins. This is particularly the case in sectors such as furniture where the Easter sales period sends rival
retailers into a discounting frenzy. Taking control of the manufacturing process is one way to keep supply chain costs down,
but not all businesses have the wherewithal to manufacture their own products. This is where direct sourcing comes into its
own. Dunelm has already made direct sourcing a major part of its growth strategy to protect its value credentials, while Oak
Furniture Land keeps costs down by commissioning its furniture direct from factories in India, China and Vietnam rather
than pay inflated fees from wholesalers.
6 Plan for unexpected weather
The perennial unpredictability of the British weather is making it more and more difficult for retailers to plan and time
promotions effectively. Homebase, for example, has introduced a dynamic advertising strategy to rapidly shift the focus of
its campaigns according to the weather: focussing on home improvement and DIY during prolonged periods of rain and
switching back to outdoor living when the sun begins to shine. Having a predominantly British supplier base has also helps
it to rapidly reconfigure its product selection in changing meteorological conditions. The strategy could equally apply to
food retailers switching between comfort food promotions during a cold snap to burgers, sausages, salads and other popular
barbecue and picnic items should the sun come out to shine. Flexible stock management could also be the answer for
fashion retailers, many of whom were caught out by a lack of interest in their seasonal clothing ranges during last year’s cold
snap.

Easter 2014
Page
15
March 2014
Retail sector trends and forecasts
Forecast growth of the Easter retail market
2013 – 2014
Easter spending forecasts
Market Dynamics
Total Easter market
Many retailers are facing an uphill struggle to coax spend
out of hard-up consumers. Last year widespread snow and
ice made for tough Easter trading conditions and although
2014 has already witnessed record rainfall, the prospects
for warmer weather are good. Whilst that bodes well for
some, it may impact negatively on others. Home &
furnishings, electricals and to an extent DIY retailers are
likely to suffer a fall in footfall if the sun does come out .
That said, a generally improving economy and housing
market is likely to elicit increased demand across much of
the retail sector, albeit that perhaps now more than ever
consumers are prepared to shop around to achieve the best
value on offer.
4,220
4,355
Total Easter retail spend (£m)
2013
2014
+3.2%
710 720
Easter Gifts (£m)
2013
2014
Easter gifts
Not only are retailers facing off against the prospect of
increasingly limited disposable incomes, but there is a
growing apathy towards Easter as an occasion which is
impacting upon the gift market.
In spite of dramatic price increases in recent years, Easter
eggs have largely retained their popularity. In the face of
rising demand for chocolate in emerging markets, cocoa
prices have leapt up recently and retailers may look to once
again pass some of this extra cost on to consumers at
Easter. Inflation-driven growth in food gifts is likely to be at
least partially offset by deflation in the non-food sector as
retailers look to discount to drive volumes.
+1.4%

Easter 2014
Page
16
March 2014
Retail sector trends and forecasts
Forecast growth of the Easter retail market
2013 – 2014
Easter spending forecasts
Market Dynamics
Food & drink
A sunny spell over Easter would be particularly
welcome for food and grocery retailers as Britons bring
out the barbecues. Although there has been some
slowdown in food inflation in recent months, this has
largely been driven by a stabilising in prices for ambient
food while fresh food inflation continues apace.
Despite the promises to source from British farms in the
wake of the horsemeat scandal, retailers are
increasingly sourcing cheaper Polish and Irish beef
which should help to offset rising meat prices.
Nevertheless, food & grocery is set for a 4.5% uplift
compared to Easter 2013 thanks largely to inflation and
rising demand for fresh produce in the event of warmer
weather.
2,010
2,100
Food & drink (£m)
2013
2014
1,500 1,535
Non-food seasonal (£m)
2013
2014
Non-food seasonal
Greater momentum in the housing market is likely to be
of particular benefit to DIY and home retailers this
Easter.
Last year seasonal clothing ranges suffered due to the
poor weather and barring any repeat of extreme
weather conditions, seasonal ranges should put in a
stronger performance in Easter 2014.
As a result of these factors the non-food seasonal
market is anticipated to rise by 2.3% to £1,535m.
+4.5%
+2.3%

Easter 2014
Page
17
March 2014
4,220 4,355
Total Easter retail spend (£m)
2013
2014
Easter spending forecasts : 2014
Forecast market size and growth rates
+2.4%
710
2,010 1,500
720
2,100 1,535
Gifts Food & grocery Non-food seasonal
2012
2013
+1.4
%
+2.3
%
+4.5%
316,681 324,126
Total retail spend (£m)
2013
2014
+3.2%

Easter 2014
Page
18
March 2014
Summary of Easter consumer data
Easter – unimportant and over-commercialised
The economic malaise has led to a growing cynicism around many popular retail occasions and
Easter is no exception. 72.8% of consumers feel that Easter has become far too commercial, while for
almost half (47.4%) Easter is either not that important or totally unimportant. Early indications are
that despite the increase in consumer conﬁdence and a seemingly resurgent economy, consumer
attitudes to spending at Easter will remain fairly static this year with the vast majority of consumers
(79.7%) intending to spend about the same as they did in 2013.
The great British Easter Sunday roast
The tradition of the Easter Sunday roast appears to be alive and well with a notable segment of
consumers. Over a quarter (26.4%) plan to cook a special meal or roast on a Sunday; a trend which
looks set to boost sales of chickens and lamb in particular (17.0% of consumers intend to buy a
chicken for roasting, while 12.6% are set to buy lamb). Fish has emerged as a popular alternative with
9.0% of consumers, putting it, perhaps surprisingly, ahead of other meats on 4.4%. Enthusiasm for
Easter table decorations is low though with just 2.0% of consumers planning to purchase them.
A time to tend to the garden
The freezing Spring of 2013 proved to be disastrous for the gardening and outdoor living markets and
retailers will be praying for more favourable weather conditions this year. Almost a ﬁfth (17.8%) of
consumers intend to use their time over Easter to do some gardening making it one of the most
popular Easter activities. Linked to this, over a tenth (10.3%) of consumers intend to purchase
outdoor plants, bulbs and seeds this Easter. The tough trading conditions last year led to many garden
centres campaigning to end the Easter Sunday trading restrictions which curtail their sales potential
during what is one of the most critical periods in the gardening calendar.
Own-brand Easter eggs have some catching up to do
Despite almost two thirds (62.5%) of consumers viewing Easter eggs as poor value for money, their
popularity endures – 42.4% intend to buy chocolate eggs for children, while 34.2% will be buying them
for adults. Branded eggs dominate with 58.1% of consumers intending to buy mostly or solely branded
Easter eggs. This is despite the fact that the past few years have witnessed some substantial price
increases on Easter eggs, while at the same time supermarkets have been commended for the quality
and value for money of their eggs. Asda and Tesco in particular have had notable successes in taste
tests over the past two Easters. It seems that something may be lacking in the marketing of own-brand
Easter eggs as just 33.2% of consumers agreed that own-brand eggs are the equal of branded ones.

Easter 2014
Page
19
March 2014
Easter views and spending prospects
Consumers show high degree of apathy towards Easter
Chart to the left shows the proportion of consumers that hold certain views on the
importance of Easter. Chart to the right shows the proportion of consumers that say they
will spend more, about the same and less on Easter products in 2014 compared to 2013.
18.7
28.7
31.7
12.3
8.7
Easter is
totally
unimportant
to me
Easter is not
that
important to
me
Easter
matters to
me, but it’s
not a big deal
Easter is an
important
occasion for
me
Easter is a
very
important
occasion for
me
How important is Easter? (%) How much are you intending to spend this
Easter compared to last year? (%)
6.4 6.3
79.7
6.2
1.3
Signiﬁcantly
less
A bit less About the
same
A bit more Signiﬁcantly
more

Easter 2014
Page
20
March 2014
Easter activities
Chart shows the proportion of consumers that plan to undertake various diﬀerent
activities over Easter.
•  Bearing in mind the lack of importance that
many consumers seem to be attributing to
Easter this year, it is perhaps unsurprising that
consumers’ planned activities are decidedly
low-key.
•  Relaxing at home is by far the most popular
planned activity, while cooking and baking
feature prominently. 13.3% of consumers plan
to bake cakes, biscuits or cookies over Easter,
though cooking and baking are the most
gender-skewed of the activities in the survey;
more than twice the proportion of female
consumers intend to bake (18.1% compared to
7.6% of men) while almost a third of women
(32.9%) plan to cook a special meal compared
to less than one ﬁfth of men (18.6%).
What are consumers planning to do this Easter?
Figures in all charts are percentages
The Easter Sunday meal takes centre stage
2.6
2.8
3.2
3.7
4.8
6.2
8.3
10.6
10.8
11.5
13.3
17.8
18.6
21.8
26.4
44.1
Something else
Take a holiday abroad
Spend more time at the pub
Have a drinks party for family or friends
Take a holiday in the UK
Go and stay with family
Have family to stay over
Visit friends
Do DIY jobs around the house
Attend a church service
Bake a cake, biscuits or cookies
Do gardening
Visit relatives
Nothing, do not observe the occasion at all
Cook a special meal or a roast on Easter Sunday
Relax at home

Easter 2014
Page
21
March 2014
Easter purchases
Chart shows the proportion of consumers that intend to purchase various different
products for Easter.
•  Hot cross buns and Easter eggs as the
quintessential Easter foods, top the list of
products consumers intend to purchase this
Easter.
•  Just 1.2% of consumers said that they are
intending to purchase barbecues or
barbecue equipment. This may be a
hangover from the unseasonably cold
weather that dampened the Easter
festivities in 2013 and is a reflection of just
how weather-dependent this category can
be. As is customary in the UK, any
prolonged glimpse of sunshine is likely to
see barbecue sales soar.
•  More worringly for DIY retailers will be the
relative lack of enthusiasm for DIY products
with just 2.8% intending to buy decorating
equipment and only 2.3% other DIY
products. After disastrous sales figures over
Easter 2013, retailers will be hoping that the
recent momentum in the housing market
will help to precipitate a change in fortunes
for 2014.
What products will consumers be buying this Easter?
Figures in all charts are percentages
Traditional Easter gifts show enduring popularity
0.5
0.6
0.7
1.2
1.9
2.0
2.3
2.7
2.8
3.7
3.9
4.4
6.3
9.0
9.5
10.3
11.8
12.6
14.4
17.0
34.2
42.4
44.5
Indoor power tools
Garden power tools (including lawnmowers)
Indoor hand tools
BBQ and BBQ equipment
Easter household decorations
Easter table decorations
Other DIY products
Other (non-chocolate) sweets and candy
Decorating products (paint, wallpaper, etc.)
Non-food Easter gifts
Simnel cake
Other meat
Easter biscuits
Fish
Other chocolates
Outdoor plants, bulbs and seeds
Fresh cut flowers for indoors
Lamb
Easter cards
Chicken for roasting
Chocolate eggs for adults
Chocolate eggs for children
Hot cross buns

Easter 2014
Page
22
March 2014
Consumer attitudes towards Easter
All figures are percentages
As with a number of other occasions, Easter is being met with growing cynicism, with over two-thirds of respondents
believing that the occasion has become too commercial. This cynicism is perhaps a more general reflection of
religion gradually representing less of an importance among an increasingly secular UK population.
» Easter is an important time to connect with family and
friends 10.8 34.7 35.3 9.6 9.7
» Easter is an important celebration for me 8.7 19.4 30.8 21.5 19.5
» Easter has a religious significance for me 10.1 17.8 23.2 18.0 31.0
» Easter has become far too commercial these days 37.4 35.4 22.4 3.5 1.3
» Easter is a time to splash out on good food and drink 3.5 19.3 42.5 20.4 14.4
Strongly agree Agree
Neither agree
nor disagree
Disagree
Strongly
disagree
All figures are percentages
» Easter is a good time to catch up on odd jobs about the house 8.9 33.5 42.1 9.7 5.8
3.5 17.1 55.4 16.0 8.1» I tend to leave my Easter shopping until the very last minute
Consumer attitudes

Easter 2014
Page
23
March 2014
Consumer attitudes towards Easter
All ﬁgures are percentages
» Easter eggs are poor value for money 25.6 36.9 25.1 10.5 1.8
» Easter eggs are a very important part of Easter 12.2 37.1 32.6 10.6 7.6
» I would rather receive a normal chocolate bar than an
Easter egg 14.7 20.2 39.3 20.4 5.4
» I tend to buy Easter eggs when there are multi-buy deals on 19.5 33.1 29.0 9.3 9.0
» Retailer own brand Easter eggs are just as good as branded
ones 8.0 25.2 45.0 15.5 6.2
Strongly agree Agree
Neither agree
nor disagree
Disagree
Strongly
disagree
» Easter eggs are for adults as well as kids 24.2 39.3 26.6 7.1 2.8
24.5 30.8 32.7 8.6 3.4» There is too much pressure on parents to buy Easter eggs
for kids
» Cadbury’s Creme Eggs should be available all year round,
not just at Easter
20.5 23.0 36.8 9.8 9.8
Consumer attitudes

Easter 2014
Page
24
March 2014
Preferred Easter egg brands
1st choice
Lindt 13.7
Thorntons 12.4
Creme Egg (Full-size
Easter Egg)
8.7
Green & Blacks 7.3
Ferrero Rocher 6.5
Dairy Milk 6.5
Mini Eggs (full size
Easter egg)
4.6
Maltesers 4.3
Flake 3.6
Buttons 3.3
2nd choice
Thorntons 11.2
Lindt 7.4
Ferrero Rocher 6.6
Dairy Milk 6.1
Easter Egg)
6.1
Maltesers 5.4
Flake 5.3
Easter egg)
5.2
Green & Blacks 5.1
Cadbury's Caramel 3.9
3rd choice
Thorntons 7.5
Lindt 6.4
Ferrero Rocher 6.0
Easter Egg)
5.9
Flake 5.8
Dairy Milk 5.8
Easter egg)
4.6
Maltesers 4.3
Green & Blacks 4.1
Thorntons were the most popular brand of Easter egg in our survey, with almost one third (31.1%) of consumers naming them as one of the
top three Easter eggs they would like to receive. Perhaps the key tenet of CEO, Jonathan Hart’s turnaround strategy for Thorntons has been to
boost the company’s commercial arm by focussing more on selling to other retailers where margins are slimmer, but there is potential for a
much a greater volume of sales . So far the plan seems to be working with Thornton’s primed for renewed growth and it certainly looks as
though the brand has been boosted by greater visibility on supermarket shelves. Cadbury’s Creme Egg are a notable recent marketing
success story. 2013 saw the brand ignite a reversal in fortunes following several years of declining sales thanks, in part, to a successful social
media offensive. The campaign which invited consumers to “Have a fling with a Creme Egg” was targeted at the key 16-24 age group that are
perceived as being harder to reach with standard TV advertising. Encouraging consumers to interact and engage with the brand played its
part in a significant sales uplift in 2013 and this year over a fifth of consumers (20.7%) mentioned Creme Eggs as one of their top three most
wanted brands.
Mentions in top 3
Thorntons 31.1
Lindt 27.6
Easter Egg) 20.7
Ferrero Rocher 19.1
Dairy Milk 18.4
Green & Blacks 16.4
Flake 14.8
Easter egg) 14.3
Maltesers 14.0
Consumers were asked to select their top three from a selection of Easter egg brands, grading them as first second or third
choice. The tables above show the top ten brands selected as first, second and third as well as a combined table which ranks
the brands by overall number of mentions in consumers’ top three choices.
Easter Egg purchasing

Easter 2014
Page
25
March 2014
Easter Egg purchasing
Branded Easter eggs dominate
20.7
31.3
22.4
8.3 7.6
9.5
1 to 2 3 to 4 5 to 6 7 to 8 9 to 10 More than
10
Chart to the left shows the proportion of consumers that intend to buy certain quantities
of Easter eggs. Chart to the right shows the proportion of consumers that intend to buy
branded or unbranded Easter eggs.
5.0
7.7
29.2
34.9
23.2
I will only buy
retailer own
brand Easter
eggs
I will mostly
buy retailer
own brand
Easter eggs
I will equally
buy retailer
own brand
and branded
Easter eggs
I will mostly
buy branded
Easter eggs
I will only buy
branded
Easter eggs
How many Easter eggs are
consumers intending to buy? (%)
Branded or unbranded? (%)

Methodology
About the research

Methodology
Page
27
March 2014
Methodologies and sources
•  A combination of consumer research, secondary research and market
forecasting were used to compile this report.
•  Consumer research in this report is based on a survey conducted with a
UK nationally representative poll of consumers. Over 2,000
consumers were interviewed during early February 2014 and
questioned about their views on Easter and their likely shopping
behaviour over that period.
•  All numbers relating to expenditure and forecast expenditure of
gadgets are taken from Conlumino’s own retail model. This is updated
on an ongoing basis with inputs from oﬃcial sources (such as the BRC
and ONS), retailers’ results and trading updates, other secondary
sources and industry surveys, Conlumino’s ongoing programme of
research into consumer spending and habits, and underlying economic
drivers and trends. Conlumino analysts both model and interpret this
information to provide guidance on the likely future direction of retail
expenditure at an overall, sector and category level.
•  Unless otherwise stated, all sources of information are derived from
Conlumino’s own research and should be referenced to Webloyalty/
Conlumino.

Conlumino
020 7936 6654
hello@conlumino.com
7 Carmelite Street, London EC4Y 0BS
Webloyalty
020 7291 8720
enquiries@webloyalty.co.uk
19-21 Great Portland Street, London

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Looking Ahead... Webloyalty's Easter Retail Research 2014