‘Over third consumers expect to spend less on Christmas’

Over a third (37 percent) of UK consumers expect to be spending less at Christmas this year, a recent report has warned.

According to a new research conducted by Opinium to explore how consumers’ spending habits have changed due to rising inflation and the cost-of-living crisis, it emerged that more than half (58 percent) say they have reduced their spending on non-essential items.

This is followed by reducing spending on travel (37 percent), essentials (32 percent) and utilities (28 percent). When asked, less than a quarter of adults (24 percent) said they had not done anything to reduce their spending in the past six months.

The report advices retailers to accommodate to current consumer challenges to maintain customer loyalty, highlighting that when asked what would be most helpful for retailers to offer to help with the cost of living, 48 percent of respondents said free or reduced delivery fees, 38 percent said more vouchers and options, while 31 percent said ways to compare prices with other retailers.

Despite less overall spending, online shopping is likely to help people browse for the best deals ahead of Christmas this year, with one in three UK adults (33 percent) saying they have shopped online more frequently in the six months prior. Of these people, half (50 percent) said this is because it’s more convenient, while 30 percent said it’s because of items being cheaper online and another 30 percent said to avoid travel costs.

“It is clear that UK consumers will be making cutbacks this Christmas and brands may struggle if they don’t respond to this strategically,” says Ted Rogers, chief revenue officer at Digital River.

“It is not all doom and gloom, as the research shows that shoppers are still keen to spend online and are more likely to do so if offered more support from brands, including a frictionless digital experience. Retailers should offer reasonable delivery prices and extra perks such as vouchers to entice customers.”