UK consumers are signalling a thriftier approach to the 2022 festive season, as 59% believe they will have less money overall to spend during the Christmas period, according to new research from Deloitte.
Surveying over 3,000 UK consumers about their spending intentions for the retail sector’s ‘Golden Quarter’, 38% of respondents say they will switch to cheaper brands or stores to seek out gifts and, when it comes to Christmas Day dinner, one in three (35%) consumers plan to do at least part of their food shop at a discounter supermarket.
With rising costs adding pressure to budgets, one in ten (11%) intend to purchase gifts either second hand or via reselling platforms this year.
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “Consumers are entering the festive season with budgets under more pressure this year, and it is not surprising that almost all are considering affordability and adapting their typical Christmas spending habits in one way or another. The economic circumstances in which we enter the period has, perhaps inadvertently, fostered a spirit of thrift amongst some consumers who are looking to save money on celebrations this year.
“For some, this will mean looking to the ‘pre-loved’ market for gifts or scouting out presents via resellers. For others, this could mean shopping with cheaper stores or brands or, in the case of food, buying Christmas dinner ingredients from the discounter supermarkets.”
With the retail calendar also fast-approaching large promotional events, such as Black Friday, nearly half (46%) of consumers say they intend to buy more gifts either on sale or discounted this year.
Céline Fenech, consumer insight lead at Deloitte, commented: “Whilst it is not unusual for consumers to look for discounts in the run up to Christmas, this year’s shopping events, like Black Friday, could see even more interest than usual as budget-conscious consumers look for smarter ways to bring down the cost of their Christmas spending.”
According to Deloitte’s data, 54% of consumers intend to shop for Christmas in November and the first two weeks of December; a period which includes Black Friday.
Fenech added: “Some consumers have also indicated that they will shop closer to Christmas Day to not only manage budgets but also take advantage of any discounts. For retailers, this will mean ensuring availability of product ranges to suit all budgets and include more ‘gift’ items within promotional ranges, expanding on the clothing and footwear, and electronic goods that are usually purchased during Black Friday events.”
Over half (56%) of consumers believe they will be spending more this Christmas because of rising prices. Whilst many consumers are looking to be more resourceful with budgets, 8% state they will simply not buy Christmas gifts this year.
Vernon-Harcourt concluded, “Ongoing rising costs have seen consumer spending habits shift for a prolonged time, with non-essential items often the first to go. Unfortunately, it appears that this cost-cutting will also be reflected on some aspects of Christmas celebrations as some consumers will forgo gift-giving altogether. Whilst this will be a difficult financial decision for some, others will have re-prioritised what the festive period means to them, following a number of COVID-impacted Christmases.”
