Around one in three consumers (30%) in the UK are planning to spend more this Christmas compared with last year, according to new Deloitte research. This is higher than the rest of Europe, where less than a quarter (23%) plan to spend more. In the UK, younger consumers aged 18-34 are nearly twice as likely to spend more this Christmas compared with older age groups.
Almost half (44%) of UK consumers agree they have enough money to create a joyful Christmas for themselves and their family this year. Of those consumers planning to spend more this Christmas compared with last year, a third (33%) blame higher prices, while almost a quarter (23%) say it is a deliberate choice to allocate more budget to Christmas. One in five (20%) say they are spending more because their financial situation has improved.
Overall, just one in five (18%) UK consumers plan to spend less this Christmas compared with last year. Of those consumers planning to spend less, around half (48%) blame the cost of living, while a third (37%) say it is because their financial situation has worsened.
When asked about what they will cut back on if their budget becomes too constrained, the top things consumers stated were experiences, such as restaurants or attending events, and clothing. Fewer are likely to cut back on gift vouchers, hosting at home, or home décor and seasonal items.
A third of UK consumers find Christmas shopping (33%) stressful. Similarly, a third (29%) find the general Christmas period stressful, particularly amongst consumers aged 35-54 (38%).
When it comes to alleviating shopping stress, one in five (20%) plan to use GenAI to help with their Christmas shopping decisions, rising to almost two in five (42%) among consumers aged between 18-34, and only 4% among those aged over 55. Meanwhile, more than a third (38%) of 18-34 year-olds will turn to influencers to help with their festive shopping decisions, while only 2% among over 55’s.
Cande Cooper, retail partner at Deloitte UK, said: “While there is a strong desire among many UK consumers to create and spread joy this Christmas, shoppers are demonstrating a pragmatic approach, carefully balancing their budgets with their festive aspirations. High costs continue to squeeze many consumers’ spend, and so retailers will look to target consumers with promotions, whilst also catering to those looking for quality products and shopping experiences. Retailers should also take note of evolving consumer behaviours, particularly the increasing influence and adoption of GenAI in the shopping process.”
