According to a study conducted by Deloitte, it seems that British consumers are anticipating a frugal Christmas season this year. The research revealed that 59% of the respondents claimed that they will have less money to spend. However, there is an interesting contradiction in the findings, as half of the participants admitted that they will have to spend more than they usually do or want to. This suggests that despite financial constraints, people are willing to stretch their budgets in order to create a memorable holiday season.
The study also highlighted that consumers are actively seeking ways to save money on their festive gift expenditures. Approximately 1 in 10 people are considering buying secondhand gifts this year, while 2 in 5 are planning to take advantage of sales or discounted items. Additionally, another 2 in 5 consumers are planning to switch to cheaper brands or stores for their holiday shopping. Interestingly, 10% of the respondents stated that they will not be buying any gifts at all.
Deloitte conducted the study by surveying over 3,000 UK consumers to gain insights into their spending habits and intentions for the ‘Golden Quarter.’ This term refers to the final three months of the year when retailers traditionally experience a surge in sales. The findings indicated that 38% of respondents plan to switch to cheaper brands or stores for their gift purchases. Furthermore, 35% of consumers intend on doing part of their food shopping at discount supermarkets, which means they will spend less time in larger supermarkets and high-end food stores such as M&S and Waitrose. This reduction in exposure to non-food products sold by these retailers could have an impact on their sales during the festive season.
The study also shed light on other interesting consumer behaviors. For example, 11% of respondents expressed interest in buying secondhand gifts and will be exploring reselling platforms. Moreover, 54% of participants plan to do their Christmas shopping in November and the first two weeks of December, including during Black Friday. Another notable finding is that 46% of consumers aim to purchase more gifts on sale or at a discounted price this year.
Despite the financial constraints, 56% of respondents believe that they will be spending more this Christmas due to rising prices. Oliver Vernon-Harcourt, head of retail at Deloitte, commented on the findings, stating that consumers are entering the festive season with tighter budgets. The economic circumstances have unintentionally driven a spirit of thrift among some consumers, who are actively searching for ways to save money on their celebrations this year.
Céline Fenech, consumer insight lead at Deloitte, stressed the significance of offering discounts and promotions during shopping events like Black Friday. She noted that budget-conscious consumers are likely to have heightened interest in these events this year as they seek smarter ways to reduce the cost of their Christmas spending. Fenech also mentioned that some consumers plan to shop closer to Christmas Day to take advantage of potential discounts. Therefore, retailers should ensure that they have a wide range of products available to suit all budgets, including more “gift” items in their promotional ranges, expanding beyond the usual categories of clothing, footwear, and electronics typically purchased during Black Friday.
Sources:
– Deloitte Study: [Link 1]
– Black Friday Deals: [Link 2]
