Christmas spending trends 2024
Christmas 2024 is shaping up to be a season of cautious spending for UK shoppers, according to Savvy’s latest research (survey of 1,000 UK shoppers). While consumer confidence has improved compared to this time last year, it has dropped in recent months and many households remain mindful of their finances as they prepare for the festive season.
Shoppers cutting back on Christmas expenditure
A significant portion of shoppers are planning to cut back on spending this year. Savvy finds that just less than half of shoppers expect to reduce their spending on food and drink, while 56% plan to scale back gift purchases. That said, we do forecast overall Christmas spending will increase, compared to 2023.
The research indicates that many shoppers are turning to discount retailers. 55% expect to spend more at stores like Aldi and Lidl this Christmas, compared to last year. 11% say they will do their main Christmas shop at Aldi this year, with 7% favouring Lidl.
Last-minute Christmas shopping on the rise
As we’ve seen over the past few years, around a third of shoppers plan to delay their gift buying until the last minute. This strategy has been encouraged by retailers’ pre-Christmas discounting in recent years.
Secret Santa and personalised gifts in demand
Smaller traditions like Secret Santa present a significant opportunity, with 35% of respondents planning to buy a Secret Santa gift this year.
36% expect to purchase personalised gifts. Sustainability is also on shoppers’ minds, with half of respondents (50%) stating they want to buy sustainable gifts where possible. There’s also a growing appetite for supporting local businesses, with 59% of people preferring to buy Christmas gifts from smaller or local retailers.
The influence of social media on Christmas spending
Social media continues to play a growing role in influencing shopper behaviour. 31% of respondents said they believe social media is the best place to get Christmas gift ideas, and a similar number (32%) report that they’ve already seen ideas from their social media feeds. 31% expect to buy something for Christmas that they first discover on social media, showing how platforms like Instagram and TikTok are becoming powerful drivers of shopping decisions. In perspective, 25% of shopper say TikTok is likely to influence their purchases during the festive period.
Hospitality spending pressure this Christmas
The research also covered alcohols purchasing plans. 49% of shoppers plan to stock up on beer and lager for Christmas and 28% said they will trade up to more expensive brands. Times remain difficult for the on-trade with 53% planning to cut back on going out to pubs and restaurants in order to save money over the Christmas season.
Value and incentives
While shoppers are feeling slightly more confident than last year, retailers will need to give people reasons to trade up and spend that little bit more. Many shoppers will be looking for ways to spread the cost, find better deals, and make more thoughtful purchases, whether through sustainable gifting or supporting local businesses.
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