Originally published: Retail Week, 11 December 2024
The cost of living crisis isn’t going to derail the festive cheer this year with consumers planning to spend more on gifts and even more on food and drink, according to Pureprofile.
New research by Pureprofile, a global data and insights organisation, has revealed that nearly half of shoppers say that cost of living pressures will not affect their spending this Christmas.
Retailers can expect consumers to spend 10% more on gifts than last year, and nearly 60% more on festive food and drink.
Rather than heading out, the survey also reported that 60% of shoppers will be forking out online as opposed to in-store spending this festive season.
Consumers are expected to spend an average of £362 on gifts and £317 on festive food and drink, which is good news for retailers who rely on an increase in sales during the golden quarter.
UK shoppers have also emerged as the quickest to embrace the festive spirit with two in five (40%) starting Christmas shopping in September or October, and using debit cards as their top preference for payment methods.
Factors such as discounts and convenience also have a lower impact on consumer decisions than price or quality according to Pureprofie, and offering a promotion with a percentage reduction has significantly more appeal than free shipping or buy one get one free.
Pureprofile managing director Tim Potter said: ”Each year, our Christmas Report sheds light on the way societal shifts and economic realities are influencing how we live, spend, and celebrate.
”In the UK, we are seeing a loosening of the purse strings with the average household planning to boost their spending and half feeling unaffected by cost of living pressures this Christmas.
”Out of all markets surveyed, UK consumers embrace online Christmas shopping with the greatest fervour, with 60% preferring online as opposed to in-store.
”Retailers seeking to attract shoppers back to the high street should bear in mind that displays of festive glitz in autumn are more likely to irritate than excite a third of the population.”
