Nightmare before Christmas: Half of shoppers to fork out less for gifts
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Half of shoppers are intending on spending less on Christmas this year as plunging consumer confidence sparks further concern for businesses.
One in three of those shoppers said they would slash present budgets for close friends and family by over £25 per person, according to data from market insights firm Kantar.
Brits are facing sky-high energy bills and sharp increases to grocery bills, with inflation now sitting at a 40-year high of 10.1 per cent.
As the retail sector heads into its crucial ‘golden quarter’ ahead of Christmas, more than a third of consumers (37 per cent) said they were struggling with their financial situation.
Just under half (47 per cent) of shoppers said they were worried about Christmas, an increase of 15 percentage points since last year.
The news comes as a flurry of businesses have cautioned over disappointing profits, according to consultancy EY.
Some 86 listed companies issued a profit warning in the three months to September, up from 51 over the same period last year, with consumer-facing firms especially pessimistic.
Many cash-strapped Brits would be focusing on “getting back to the true meaning of the festive season, focusing on togetherness, kindness and generosity,” this Christmas, according to Lynne Deason, head of creative excellence at Kantar.
Companies will have to “balance celebration and excess,” in their messaging this winter and avoid “gloomy, downbeat ‘sadvertising,'” Deason added.
“Brands who also take active steps to make a genuine difference to those in need this Christmas will be appreciated and remembered,” she said.
Earlier this month, Tesco boss Ken Murphy warned the supermarket was anticipating that Brits would opt to buy “smaller” Christmas gifts and for a “tighter group” within their family and friends,
The chief of the country’s largest supermarket predicted that consumers would be eager to celebrate Christmas “in an affordable way” with more shoppers eating and entertaining at home due to cost pressures.