ONE IN THREE BRITONS TO CUT BACK ON CHRISTMAS SPENDING: REPORT

Wed 18 October 2023:

Only 18 percent of Britons, by contrast, intend to spend more during the holidays than they did in 2022, according to research from PwC, Bloomberg reported.

The Christmas season can be a make-or-break period for retailers, who rely on shoppers to splurge on gifts, food and beverages for celebrations with family and friends.

Around 80 percent of those who plan to spend less blamed rising food and energy costs, while just over 20 percent cited the challenge of mortgage or rent payments.

Inflation in Britain slowed to an 18-month low in August, but prices remain elevated and fewer than a third of the adults surveyed by PwC described their household finances as healthy.

More people have begun their Christmas shopping earlier than in previous years to help budget for purchases, with one in five having started by mid-September, according to PwC.

“With shoppers wanting to protect spending on family and special occasions, they are starting preparations early and being cautious,” said Lisa Hooker, industry leader for consumer markets at PwC.

“Last year, shoppers did spend more than expected, so with falling headline inflation, there may yet be a last-minute spending uptick. Retailers will certainly be on tenterhooks,” she added.

Consumers may be becoming somewhat less downbeat. PwC’s autumn sentiment survey stood at minus 13, unchanged from the summer and well above its low of a year ago.

Retailers are still preparing for a bumper Christmas, just in case.

Grocer Tesco is recruiting 30,000 temporary workers, J Sainsbury is hiring 22,000 and John Lewis Partnership is bringing on more than 10,000 employees across its department stores and Waitrose supermarkets, the companies said.

Marks & Spencer Group has seen its Christmas food to order sales jump 22 percent from this time in 2022. The high street chain said 50 percent of shoppers have already started preparing for the festive season.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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