Deals, sales and gifts lure shoppers
The majority (94%) of respondents said they would be tempted to purchase an item not on their shopping list but that catches their eye as being on sale. Additionally, 63 percent of all respondents said that it is difficult to reject the temptation to spend on gifts and experiences.
The holiday season is a time for giving, and that’s reflected in the top category that consumers feel the most tempted to spend on – 47 percent of survey respondents say gifts for others. In fact, among respondents who said they overspend on holiday shopping, 3 out of 4 say they typically overspend on gifts for others followed by things they don’t need because they are on sale (27%) and going out to eat with friends and family (25%).
Consumers are especially enticed to spend by in-store sales and discounts (78%), Black Friday deals (70%) and browsing online (65%).
“The holiday season might be the most wonderful time of the year, but overspending can cause consumers to feel less jolly than usual,” said Rod Griffin, senior director of Consumer Education and Advocacy at Experian. “With a budget and plan in place, holiday shoppers can avoid temptation and jingle all the way to the new year without a financial headache.”
Consumers are making financial plans for the new year
While they may be expecting to spend more this year, holiday shoppers are also making plans to better help them manage their finances. Sixty-nine percent of consumers are more motivated to improve their finances in preparation for the holiday season, the highest their motivation has been in several years. Fifty-four percent of consumers said they will set aside money for gifts and 43 percent will tighten their budgets as a way to prepare for holiday shopping. They’re also looking ahead to the new year, with 43 percent of respondents saying that paying off debt is their top financial improvement step they plan to take before 2025.
As holiday shoppers look towards the end of the year, here are a few tips they can use to make their financial situation merrier.
Trim your tree and expenses with a holiday budget: Creating a budget is crucial to prevent overspending and impulse purchases. Consumers should review their income, expenses and bills to determine how much they can spend on holiday shopping, then use their budget to ensure they don’t overextend themselves. Leverage free resources that can ring in savings: Holiday shoppers can leverage a free Experian membership with features and tools that may help them find ways to save money including access to the Experian Marketplace[i]. Here they can explore tailored credit card offers based on their credit profile that may offer cash back rewards or other perks to use toward holiday expenses. Shop early to help keep the season bright: It may already be November but holiday shoppers can still start their shopping sooner rather than later. By starting early, they may be able to take advantage of better deals, avoid paying more for rush orders and spread out their expenses so they don’t feel overwhelmed by their purchases.For more information on the Experian Marketplace and to find the right credit card, consumers can visit www.Experian.com/credit.
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realize their financial goals and help them to save time and money.
We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.
We invest in talented people and new advanced technologies to unlock the power of data and innovate. As a FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 22,500 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.
[i] Based on FICO® Score 8 model. Offers and approval not guaranteed. Eligibility requirements and terms apply. Subject to credit check which may impact your credit scores. Offers not available in all states.Marketplace Licenses and Disclosures.
]]>In its 14th year of producing this prestigious international list, Great Place To Work® surveyed 6.2 million employees worldwide on key factors that create great workplaces and analysed company workplace programmes that impact 18million employees globally. Organisations were assessed on their efforts to create great workplaces and positively impact people and communities across multiple countries around the world.
“This is a great recognition,” said Brian Cassin, Chief Executive Officer of Experian. “It’s a testament to the hard work, dedication, and creativity that our employees worldwide bring to our company every day, along with their unwavering commitment to excellence, innovation, and collaboration.”
Among the key global programmes that help create a work environment where all team members can thrive are the company’s diverse employee resource groups, mental health first aiders to support employees who experience a mental health challenge, technology hackathons that spark team member innovation, and career‑growth and professional-development opportunities such as a Careers Week, ExperianUniversity and Leadership Exchange.
“We have long aspired to be one of the best companies in the world to work for, and over the past few years, we have made this a priority,” said Jacky Simmonds, Chief People Officer, Experian. “Our journey has been marked by a steadfast commitment to putting our people first and fostering the collaborative and inclusive culture that sets us apart.”
The World’s Best Workplaces have demonstrated their success in creating great workplaces and their impact on their people and communities by ranking on national lists around the world. To be considered, companies must be identified as outstanding global employers by appearing on at least five Best Workplaces™ Lists in Asia, Europe, Latin America, Africa, North America or Australia during 2022 or early 2023. Companies must have at least 5,000 employees worldwide with at least 40% (or 5,000) of those employees located outside the headquarters country.
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.
We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.
We invest in talented people and new advanced technologies to unlock the power of data and innovate. As aFTSE100 Index company listed on theLondon Stock Exchange(EXPN), we have a team of 22,500 people across 32 countries. Our corporate headquarters are inDublin, Ireland. Learn more atexperianplc.com.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian and its affiliates. Other product and company names mentioned herein are the property of their respective owners.
]]>Brian Cassin, Chief Executive Officer, commented:
"We delivered good growth in H1. We continue to execute successfully on our growth strategy to introduce new products, deploy advanced analytics and scale our leading platforms. At constant currency and from ongoing activities, revenue was up 7%, Benchmark EBIT increased 10%, and Benchmark EBIT margin was up by 60 basis points. Currency was a 1% headwind to revenue and total Benchmark EBIT. Benchmark earnings per share increased by 8% at actual exchange rates.
“For FY25, we continue to expect organic revenue growth in the range of 6% to 8%. Based on our progress, we are raising our margin outlook, and now expect margin accretion to be towards the upper end of our +30 to +50 basis points guidance range. All measures are at constant exchange rates and on an ongoing basis.”
Benchmark and Statutory financial highlights
2024 US$m
2023 US$m
Actual rates growth %
Constant rates growth %
Organic growth %2
Benchmark¹
Revenue – ongoing activities3
3,617
3,399
6
7
7
Benchmark EBIT – ongoing activities3,4
1,011
932
8
10
n/a
Total Benchmark EBIT
999
928
8
9
n/a
Benchmark EPS
USc 76.0
USc 70.4
8
9
n/a
Statutory
Revenue
3,628
3,424
6
n/a
n/a
Operating profit
880
799
10
n/a
n/a
Profit before tax
718
763
(6)
n/a
n/a
Basic EPS
USc 60.2
USc 62.3
(3)
n/a
n/a
First interim dividend
USc 19.25
USc 18.0
7
n/a
n/a
1. See Appendix 1 (page 14) and note 6 to the condensed interim financial statements for definitions of non-GAAP measures.
2. Organic revenue growth is at constant currency.
3. Revenue and Benchmark EBIT for the six months ended 30 September 2023 have been re-presented for the reclassification to exited business activities of certain Business-to-Business (B2B) businesses, detail is provided in notes 7(a) and 8 to the condensed interim financial statements.
4. See page 16 for reconciliation of Benchmark EBIT from ongoing activities to Profit before tax.
Highlights
· Strong H1 progress. Q1 organic revenue growth was 7%, with Q2 organic revenue growth also at 7%, resulting in total revenue growth from ongoing activities of 7% at constant and 6% at actual exchange rates.
· All regions contributed positively in H1. Organic revenue growth was 7% in North America, 7% in Latin America, 2% in the UK and Ireland, and 7% in EMEA and Asia Pacific.
· Consumer Services organic revenue growth was 9%. We now serve over 190 million free members as we continue to grow membership and engagement, and provide innovative tools for our members to navigate their financial lives.
· B2B organic revenue growth was 6%, strengthening in Q2. Analytics expansion, mortgage, along with strong performance in our North America verticals, drove growth in H1.
· Benchmark EBIT from ongoing activities rose 10% at constant exchange rates and 8% at actual exchange rates to US$1,011m, with a Benchmark EBIT margin of 28.0%, up 60 basis points at actual exchange rates and constant currency.
· Good conversion from Benchmark EBIT into Benchmark EPS. Benchmark EPS growth of 8% at actual exchange rates, and 9% at constant exchange rates.
· Benchmark operating cash flow was US$707m, a conversion of 71% in our seasonally weaker half for cash conversion.
· Strong financial position, driven by capital discipline and strategic execution, with Net debt to Benchmark EBITDA of 2.0x.
· We invested US$818m in acquisitions to support our strategic growth.
· Statutory profit before tax of US$718m, a decline of (6)% (2023: US$763m), principally due to non-cash movements in the fair value of our interest rate swaps. Statutory Basic EPS down (3)%.
· First interim dividend up 7% to USc 19.25 per ordinary share.
View the full press release in PDF format.
Experian
Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4220
Nick Jones Media queries
Teneo
Graeme Wilson, Louise Male and Lisa Jarrett-Kerr +44 (0)20 7353 4200
There will be a presentation today at 9.30am (UK time) to analysts and investors via webcast. To view the slides and listen in online please go to experianplc.com for the link.
Experian will update on third quarter trading for FY25 on 15 January 2025.
Roundings
Certain financial data has been rounded within this announcement. As a result of this rounding, the totals of data presented may vary slightly from the actual arithmetic totals of such data.
Forward-looking statements
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward-looking statements. See the risk section on page 13 note 25 to the condensed interim financial statements for further information on risks and uncertainties facing Experian.
Company website
Neither the content of the Company’s website, nor the content of any website accessible from hyperlinks on the Company’s website (or any other website), is incorporated into, or forms part of, this announcement.
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.
We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.
We invest in talented people and new advanced technologies to unlock the power of data and innovate. As a FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 22,500 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.
]]>This is according to analysis based on transaction data from over 4 million UK cardholders across more than 4000 retail brands, which found year-to-date online spending rose by 4% compared to the same time in 2023, with instore purchases falling by 2%.
If this upward online trend continues, UK retail is set to benefit from an extra £28 billion in spend during the ‘Golden Quarter’ (November to January), a £1.1 billion boost on last year’s sales.
Beyond online and in-store sales, looking at year-to-date spending compared to the same period last year, the research highlights key shopping trends that have defined 2024 and are likely to shape how Brits approach Christmas gifting this year.
Brits embracing sustainable shopping
Analysis revealed that shoppers are increasingly turning to the second-hand market for sustainable bargains. A comparison of transactions at online second-hand marketplaces showed a 21% increase in year-on-year total sales.
Interestingly, this growth is not just driven by younger consumers but also by older age groups. Shoppers aged 45-54 and 55+ have led the surge, with sales climbing by 56% and 59% respectively over the past year.
If spending with second-hand retailers continues at current rates, the sector could be set to generate £363 million in the Golden Quarter, an additional £111 million increase on the same period the year before, as more consumers turn to sustainable gifting options.
Social commerce boom
Advances in tech have sparked a surge in social commerce, meaning shoppers can now buy directly from retailers without ever leaving their social media feeds. Comparing August sales year-on-year, spend insights show an impressive 32% jump.
If this trend continues, forecasts suggest a £212 million boost to the sector this Golden Quarter - up by £123 million in 2023 - as highly influenced shoppers are drawn to Christmas deals while browsing their feeds.
Gifting memories over materials
Insights drawn from spend on ticketing websites found an increase of 9% when compared to 2023. The growth can be attributed to millennials, with those aged 35-44 increasing their spending on tickets by 10% in the last year, compared to just 4% for those aged 18-34.
What’s more, spend analysis from experience providers shows a steady 6% year on year sales increase, indicating that consumers are increasingly favouring experiences and one-off events. This trend suggests that people may look to prioritise special occasion purchases over traditional gifts this Christmas.
Colin Grieves, Managing Director Marketing Services, Experian UK&I, said: “For many businesses, the Christmas period is understandably the most important time of year.
“Shopper habits continue to evolve and its key for retailers to understand and anticipate how people are prioritising their spending. The good news is there is a great deal of insight available to brands to help them make a success of such an important time of year.”
The consumer insights from Experian and Reward have been published in a new report, and is the start of regular series which will highlight new and emerging spending trends from UK consumers.
To download the report visit: www.experian.co.uk/content/dam/marketing/uki/uk/en/pdf/Experian-Marketing-Christmas-Spend-Projections-2024.pdf
ENDS
Media contacts:
Robert Goodman, PR Manager, Corporate & Business, UK&I, Experian
Tel: +44 7989 398 498 / Email: Robert.Goodman@Experian.com
Alice Ford, Head of PR and Communication, Reward
Tel: +44 7796176044 / email: alice.ford@rewardinsight.com
The methodology
Golden Quarter spend analysis is based on insight created by Reward from transactional and merchant information derived from its Customer Engagement programmes.
Using insights from over 1.4 billion card transactions made by 4 million UK cardholders across more than 4000 retail brands, Reward analysed historic transaction trends over the Golden Quarter period (Nov-Jan) to create predicted forecasts for the 2024 season. This is then scaled to give an estimate of the expected nationwide impact.
About Experian
Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.
We have 22,000 people operating across 32 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. With corporate headquarters in Dublin, Ireland, we are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.
About Reward
Reward is a global leader in customer engagement technology, operating in more than 15 markets across Central and Eastern Europe, Middle East, Africa and Asia. Uniquely positioned at the intersection of banking and retail, Reward’s platform combines technology, data insights and digital marketing to deliver personalised propositions that help brands deepen connections with customers.
As businesses strive to better understand and influence customer behaviour, Reward is poised to lead in the fast-growing commerce media space, offering consumer insights that enhance omnichannel experiences, boost sales and build customer loyalty.
Beyond bridging the gap between consumer insight and commerce, Reward is on a mission to make everyday spending more rewarding and every interaction count, delivering billions in rewards to customers.
For more information, please visit www.rewardinsight.com.
]]>Key findings
According to the research,[1] 63% of consumers are familiar with generative AI, including 84% of Gen Zers and 79% of millennials, and one-in-three say they’re using it to learn about a new topic or finances. Nearly half (47%) have or are considering using generative AI-powered tools to help with managing their personal finances ¾ a sentiment that rings especially true for America’s youngest consumers, with 67% of Gen Zers and 62% of millennials stating they use the technology to manage their personal finances. Notably, among those who have used generative AI for personal financial management, an impressive 96% reported positive experiences and 77% stated they use generative AI for personal financial tasks at least once a week.Why GenAI?
In looking at why consumers are turning to generative AI for personal financial management, 67% said it helps them feel more productive or make decisions faster, and 38% stated they trust generative AI as much or more than human advisors.
Consumers said generative AI is most helpful for the following areas of their financial life:
Saving and budgeting (60%) Investment planning (48%) Credit score improvement (48%)“We know consumers are hungry for information and resources to improve credit scores and overall financial health,” said Christina Roman, Consumer Education and Advocacy Manager at Experian. “As we look ahead, we believe the responsible use of AI can help create new opportunities for consumers looking to improve their financial literacy and overall financial health.”
Experian’s tech tips for generative AI users
For consumers currently leveraging, or who are considering leveraging, generative AI to learn about or manage their finances or credit scores, Experian’s consumer education and generative AI experts recommend the following:
Don’t forget the basics: While there’s no question generative AI can be a helpful tool for managing your finances, consumers shouldn’t lose sight of the “old school” ways to protect their financial health and credit standing. This includes checking your credit report and scores regularly. You can get a free copy of your Experian credit report and FICO® Score[2] updated daily at www.experian.com or via Experian’s free mobile app. Consumers can also get a free credit report from each of the three credit reporting agencies once a week at www.annualcreditreport.com. Verify your findings: Generative AI tools are only as good as the information they consume and there’s no shortage of misinformation about managing your credit scores and finances that exists online. Always cross-check AI-generated financial advice with reputable sources. You can find answers to many personal finance and credit-building questions on Ask Experian- Experian’s free credit advice blog. Be safe and use generative AI responsibly. Many of the generative AI tools that exist today collect and store user data. Be mindful of the personal information you share with generative AI tools to ensure your information is protected.About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.
We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.
We invest in talented people and new advanced technologies to unlock the power of data and innovate. As a FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 22,500 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.
[1] Experian commissioned Atomik Research to conduct an online survey of 2,011 adults throughout the United States. The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between August 30 and September 3, 2024.
[2] Credit score calculated based on FICO® Score 8 model. Your lender or insurer may use a different FICO® Score than FICO® Score 8, or another type of credit score altogether. Learn more.
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