A survey conducted by Deloitte has revealed that almost 30% of UK consumers are planning to tighten their belts this festive season compared to last year. The ongoing cost-of-living crisis has had an impact on people’s spending habits, leading them to be more cautious with their money. However, the survey also showed that there has been a seven percentage-point increase in the number of consumers (from 19% in 2022 to 26% in 2023) who plan on spending more during the last three months of the year. This increase can be attributed to individuals who have set aside savings specifically for their Christmas spending.
The data from Deloitte also highlights a shift in consumer behavior, with many people spreading out their spending across the entire quarter. In fact, 32% of respondents stated that they plan to do most of their gift shopping in November, taking advantage of the discounts and promotions offered during the Black Friday and Cyber Monday sales. Additionally, the survey revealed that 50% of respondents plan on buying their presents in-store this year, which is a slight increase from 47% in the previous year.
Oliver Vernon-Harcourt, head of retail at Deloitte, emphasized the importance of the Black Friday and Cyber Monday weekend for retailers. He expects overall spending to increase as consumers aim to make the most of the sales and discounts available during this period.
These findings align with a similar trend identified in a survey conducted by PwC, which also indicated that UK consumers are planning to spend less this Christmas compared to last year.
While the cost of living and inflation continue to put pressure on consumers, demand in the UK has remained relatively steady this year. However, industry data released earlier this month shows a slowdown in consumer spending in September, potentially attributed to the warm weather affecting the sales of autumnal clothing.
Despite these challenges, Tesco, the largest retailer in Britain, remains optimistic about the Christmas season and expects consumer spending to remain strong. In line with this outlook, other retailers such as Sainsbury’s and Marks & Spencer are planning to hire more temporary workers for the holiday season compared to last year.
In summary, the survey data from Deloitte reflects the cautious approach that UK consumers are taking this Christmas, with a significant portion intending to spend less. However, there is also an increase in the number of consumers planning to spend more, indicating a desire to capitalize on sales and prioritize their savings. The upcoming Black Friday and Cyber Monday weekend is expected to play a crucial role in driving overall spending, making it a critical period for retailers. Despite the challenges posed by inflation and other factors, retailers remain optimistic about the festive season and are making preparations to meet the anticipated demand.
Useful links:
– Deloitte Christmas Retail Survey
– PwC Christmas Spending Insights
