Londoners are expected to spend an average of £352 on ingredients for Christmas lunch, festive snacks and nibbles, and all their drinks (both alcoholic and not) for the festive period, forecasts a new survey.
According to the survey of 2,000 Brits conducted by Very, Londoners are planning on spending more than £930 in preparation for Christmas this year, more than any other region in the country. The biggest spend Londoners will make is on food, expected to spend an average of £352 on ingredients for Christmas lunch, festive snacks and nibbles, and all their drinks (both alcoholic and not) for the festive period.
Those living in Greater London are also expected to spend around £306 on Christmas decorations for both inside and outside their homes, including a Christmas tree, door wreaths, and table decorations and centre pieces. Other expenses include board games (£72), Christmas crackers and party favours (£66) and tableware for serving guests (£72).
Following London in the big spender stakes are Northern Ireland and those in the North East. Christmas planning in Northern Ireland is expected to cost £800 on average, while in the North East, spend will average £768 across food, decorations and party supplies.
Those living in Yorkshire & the Humber are expected to spend the least on Christmas prep this year, an average of £562 in total. This includes an average spend of £157 on Christmas decorations, £261 on festive food and drinks, and £143 on things like craft supplies and tableware, reveals the survey.
Insights show that more than a third (39 per cent) of Brits plan to host some sort of Christmas event for friends and family, whether that be Christmas day lunch, a Christmas Eve cocktail party, or a Boxing Day buffet.
Those aged 25-34 are the most likely to host a Christmas event this year, with 56 per cent saying they are already planning for their event, followed by those aged 16-24 (47 per cent) and 35-44s (43 per cent), while over 55s are the least likely to host this year (30 per cent).
But while hosting might sound like a nice offer, it also seems to come with certain worries. Eight of the top 10 Christmas conundrums experienced by Brits centre around food – whether it’s balancing cooking times (28 per cent), cooking Christmas lunch (25 per cent), getting the perfect crisp on their roast potatoes (23 per cent), or simply not having enough food to feed everyone (23 per cent).
Retailers are demanding emergency intervention to prevent so-called price-gouging by UK banks and other big card providers after a recent report shows that card companies raised their fees again last year “without transparency and justification”.
The British Retail Consortium (BRC) today (5) published its BRC Payments Survey, showing a rise in the use of cash for the second year in a row to 19.9 per cent of transactions in 2023 (from 18.8 per cent in 2022).
Debit cards remained far and away the most common method of payment, increasing to 62 per cent of transactions (66.7 per cent by spending). Taken together with credit cards, card payments accounted for over 75 per cent of transactions and 85 per cent of spending.
Overall, customers visited shops more frequently but made smaller purchases, as the cost of living crisis continued to pinch in 2023. The total number of transactions rose from 19.6 billion to 21.0 billion while the average amount spent (per transaction) fell from £22.43 to £22.03.
Meanwhile, card fees paid by retailers continued to grow. The total amount paid by retailers to banks and card schemes rose by over 25 per cent in 2023, at an extra cost of £380 million. This brought the total card fees paid to £1.64 billion.
Card companies continue to raise these fees without transparency or justification and retailers hope that the Payment Systems Regulator (PSR) will now implement meaningful reforms to tackle the lack of competition and rising costs identified in their current market reviews.
Cash remains a vital form of payment for a sizeable minority of the population, particularly for its role in budgeting. This has made it important to many households during the recent cost of living squeeze.
All large retailers are committed to accepting cash in their stores, which has a lower processing cost than other forms of payment. However, the dominance of cards as the preferred payment method highlights the urgency for reform on costs, states BRC.
The consortium has revived calls for the payments regulator to implement “meaningful reforms to tackle the lack of competition and rising costs identified in their current market reviews.”
Chris Owen, Payments Policy Advisor, British Retail Consortium said, "Persistent inflation and the cost of living crisis continued to affect households across the country and many consumers used cash to budget more effectively.
"However, the dominance of card payments continues apace, accounting for over 85 per cent of spending. Card fees continue to rise at a substantial rate and the PSR must act upon the harms it has identified in its current market reviews.
"It must move swiftly to reform the market and implement remedies including price caps on fees and price rebalancing measures.”
New research from Budweiser Brewing Group UK&I (BBG) has revealed a significant shift in holiday drinking habits, with nearly half of Gen Z opting for a ‘Dry Christmas’.
The survey of 2,000 adults who celebrate Christmas and drink alcohol revealed that 34 per cent of Generation Z feel more pressure to drink alcohol during this period compared to previous years. However, the younger generation appears to be resisting the pressure, with a significant 78 per cent of those born after 1996 planning to start Dry January early, as soon as they finish work for the festive season.
This trend among younger drinkers is largely driven by a desire for balanced lifestyles, financial mindfulness, and the empowerment of making personal choices. In comparison, only 17 per cent of Baby Boomers have ever considered not having a drink over Christmas in the past, with just six per cent planning to do so this year.
Despite the generational differences, the study found that 65 per cent of all drinkers cutting back this Christmas believe they can enjoy the festivities just as much without alcohol. Additionally, a quarter of respondents expressed a preference for moderating their drinking with no-and-low alcohol options at work Christmas parties, a figure that rises to 35 per cent among the youngest workers.
“Moderation is no longer limited to awareness months and days; it is now part of our everyday lives,” Brian Perkins, president of Budweiser Brewing Group UK&I, commented.
“Efforts to moderate in January have been brought forward into the festive period and throughout the rest of the year, as we see more people choosing no-and-low alcohol alternatives as their drink of choice. While pressure to drink alcohol may still exist, it is promising to see people resisting this, and celebrating moderation. What’s even more positive is that moderation isn’t impacting people’s enjoyment; in fact, these results reaffirm that we can and do still enjoy ourselves just as much."
The study also highlighted that four in 10 respondents believe the ‘Dry Christmas’ trend will gain popularity in the coming years. Although this is driven by 60 per cent of Gen Z compared to only 43 per cent of Gen X.
Nearly a third (30%) have noticed more people in their social circles opting to moderate or remove alcohol from their Christmas plans. Furthermore, 56 per cent believe that festive parties now offer more low-and-no-alcohol drinks than five years ago, and 55 per cent feel that the quality of these options has improved.
In fact, the research also found that 64 per cent of adults are keen to moderate their alcohol intake longer term, not just at Christmas.
Perkins added: “Christmas is a time for celebration, and enjoying a drink can be a part of that festive spirit. However, a strong proportion of people are now choosing to embrace the holidays and special occasions all year round with a focus on balance and moderation. To help people moderate, it is important they have options available to do so – that’s why we pride ourselves on having a strong no alcohol portfolio which is growing from strength to strength, including favourites such as Budweiser Zero, Corona Cero and Stella Artois Alcohol Free Lager.”
A good majority of young shoppers prefer shopping at independent retailers, with many even willing to pay extra, states a recent report.
According to a survey of 2,000 adults, commissioned by global online wholesale marketplace and Bira partner Faire, a majority of people aged 18-27 prefer the "personal touch" of an independent store, with 40 per cent of the Gen Z age group also most inclined to avoid chain stores for indie retailers.
74 per cent of Gen Z shoppers prefer shopping at independent retailers, with 62 per cent willing to pay more at indie shops. Among the items most likely to be purchased from independent shops by Gen Z, according to the survey, were clothing (29 per cent), gifts (23 per cent), and home décor or homewares (17 per cent).
The survey also found that a large majority (82 per cent) of adults think their high street needs reviving, with 40 per cent believing more independent shops are key to bringing it back to life.
The survey, carried out through OnePoll, reports that over half of all adults surveyed (56 per cent) cite the cost of living as the main factor driving them to bigger chain stores, while over a quarter (27 per cent) state that they shop at independent retailers more frequently than they did two years ago.
Charlotte Broadbent, UK general manager at Faire, said, “The independent retailers we work with at Faire tell us that it’s often their youngest shoppers who most value the uniqueness and personal touch that independent stores offer over larger retailers.
"The fact they’re also prepared to pay extra for products sold by independent stores shows just how strongly they feel and how optimistic we should be for the growth of the independent retail sector in years to come.”
Charlotte added, “The number of people who want to see local high streets thriving again is huge, and we believe that supporting independent businesses is key to making this happen because they offer so many unique products and experiences that bigger retailers can’t.”
Food sales edged up in the three months to November as more shoppers plan to increase spending this Christmas, shows industry data released today (3).
According to the British Retail Consortium (BRC), the industry lobby group, and KPMG, the consultancy, retail sales slid by 3.3 per cent last month, down from growth of 0.6 per cent in October.
Food sales increased 2.4 per cent year on year over the three months to November, against a growth of 7.6 per cent in November 2023. This is below the 12-month average growth of 3.7 per cent. For the month of November, Food was in growth year-on-year.
Commenting on the figures, Helen Dickinson, Chief Executive at the British Retail Consortium, said, “While it was undoubtedly a bad start to the festive season, the poor spending figures were primarily down to the movement of Black Friday into the December figures this year.
"Even so, low consumer confidence and rising energy bills have clearly dented non-food spending. Spending on fashion was particularly weak as households delayed purchases of new winter clothing, while health spending was boosted by the season’s arrival of coughs and colds.
“Retailers will be hoping that seasonal spending is delayed not diminished and that customers get spending in the remaining weeks running up to Christmas. If not, retailers will be feeling the squeeze from both sides as reduced revenues are met with huge additional costs next year.
"The Budget, as well as the introduction of new packaging levies, will cost retailers over £7 billion extra next year. How effectively the government works the industry to mitigate these costs will determine the extent of price rises and job losses in the future.”
Commenting on food and drink sector, Sarah Bradbury, CEO, IGD, said, “Post-October Budget, shoppers have likely noticed the media reaction from businesses, but this hasn’t significantly shifted their behaviour.
"November’s grocery market performance shows year-on-year growth in both value and volume. IGD’s latest research highlights signs of festive cheer, with 5 per cent more shoppers than last year (41 per cent vs 36 per cent in 2023) planning to spend what they want this Christmas.
"However, despite this uplift, it's unlikely to be a bumper Christmas for all, as many remain focused on budgeting. The festive optimism is there, but the underlying caution means spending will still be influenced by economic pressures, especially on out-of-home activities.”
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said, “Along with the cold snap at the end of the month, retail sales also went into minus numbers for November.
“An upturn in health product buying also signalled that the winter months had arrived and, along with food and drink, was one of very few categories to see in-store or online sales growth.
“While the majority of November’s data tells a disappointing tale for the retail sector, this reporting didn’t include Black Friday week, so the hope for retailers is that consumers were being savvy shoppers and that the promotional push in the last days of the month saw held-back consumer spend materialise and mitigate what is otherwise a disappointing month. If not, then we may see some retailers launching Christmas sales early.”
Footfall took a "disappointing tumble" in November, shows recent industry data, as retailers remain hopeful that the Black Friday and Christmas sales will help to turn things around for good.
According to BRC-Sensormatic data, total UK footfall decreased by 4.5 per cent in November (YoY), down from -1.1per cent in October. High Street footfall decreased by 3.7 per cent in November (YoY), down from -3.6 per cent in October.
Retail Park footfall decreased by 1.1 per cent in November (YoY), down from +4.8 per cent in October. Shopping Centre footfall decreased by 6.1 per cent in November (YoY), down from -1.6 per cent in October.
Footfall decreased year-on-year for all four nations, with Northern Ireland falling by 2.8 per cent, England by 4.2 per cent, Scotland by 6.8 per cent, while Wales experienced the biggest decline at 7.1 per cent.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, "Footfall took a disappointing tumble in November, as a later-than-usual Black Friday and low consumer confidence meant customers were hesitant to hit the shops. Some northern cities also suffered particularly badly due to Storm Bert, which caused travel disruption towards the end of the month.
"Retailers remain hopeful that the Black Friday and Christmas sales will help to turn around the declining footfall seen through most of 2024, crucial as we enter the “golden quarter”.
"Retail not only contributes to the economy of local areas but is essential to everyday life in communities across the country. New costs bearing down on retailers in 2025, including from rises in Employer National Insurance, National Living Wage, and packaging taxes, means investment in jobs, stores, and high streets will likely be curtailed.
"If the Government wishes to bolster footfall and the growth and investment that would come with it, it must help retailers mitigate the impact of the £7 billion additional costs they face from next year.”
Andy Sumpter, Retail Consultant EMEA for Sensormatic, commented, "Retail store visits dipped in November as consumer confidence remains volatile, perhaps not helped by post-Budget spending jitters and shoppers withholding festive purchases, opting instead to shop around for the best prices or hold out for further discounting.
"This lacklustre footfall performance will have come as a blow for many retailers, who would have been counting on getting early Christmas trading results under their belts before the start of advent.
"However, it’s worth noting that these figures do not include Black Friday and the Saturday of the Black Friday weekend - tipped as one of the top busiest days for store shopping during peak trading - which will hopefully jump start seasonal shopping. Now, all eyes turn to December, where retailers hope to make up for lost ground and turn around their festive fortunes.
"This will rely not only on effective merchandising and shored up inventory availability, but on building the compelling and immersive experiences that bring the seasonal magic to life in-store.”