More than half of UK shoppers are planning to reduce their Christmas spending this year, with rising household costs driving greater demand for supermarket promotions, loyalty rewards and discounted gifts, according to new research from Savvy.
The retail and shopper marketing agency found that 55 per cent of consumers expect to spend less on Christmas presents, while 53 per cent anticipate cutting their festive food and drink budgets.
The findings also revealed that 82 per cent of shoppers want supermarkets to offer more food and drink promotions over Christmas, highlighting the importance of value as retailers prepare for the crucial festive trading period.
Consumers are increasingly looking to loyalty schemes to help manage costs, with 68 per cent planning to redeem retailer loyalty points during the festive season.
Alastair Lockhart, insight director at Savvy, commented: “Rising energy prices are biting into shopper’s disposable incomes as we head into this crucial trading period. Consumers are determined to make the most of the festive season, but they’re becoming increasingly strategic about how and when they spend. From hunting out the best deals and cashing in loyalty points to carefully timing purchases, shoppers are pulling every lever they can to make their budgets stretch further.”
The research also suggests that shoppers are adjusting when they make purchases to spread costs and take advantage of promotional events.
Almost two-thirds (64 per cent) expect to begin buying Christmas presents earlier this year, while 51 per cent plan to do more of their festive shopping during Black Friday than in 2025.
However, 41 per cent said they typically delay buying presents until the final weeks before Christmas in anticipation of retailers introducing further discounts.
Digital platforms are also becoming more influential in festive purchasing decisions.
More than a third (36 per cent) of shoppers expect to use artificial intelligence to help plan their Christmas shopping and celebrations, increasing to 55 per cent among consumers aged 18 to 44.
Meanwhile, 46 per cent believe social media is the best source of Christmas shopping inspiration, rising to 68 per cent among the same younger age group.
Lockhart added: “AI is also becoming part of Christmas planning, particularly among shoppers aged under 45. For retailers and brands, this adds another dimension in how they help shoppers find gifts, explore ideas and make purchasing decisions.”
The research also examined where consumers intend to carry out their main Christmas grocery shop, with Tesco emerging as the most popular choice. Almost a third (31 per cent) identified Tesco as their preferred retailer, followed by Sainsbury’s at 18 per cent and Asda at 12 per cent.
Aldi accounted for 10 per cent of shoppers’ preferences, followed by Lidl at 8 per cent, Marks & Spencer at seven per cent, and Morrisons at six per cent.