UK shoppers to spend less this Christmas as cost of living bites
As this year’s festivities draw closer, three quarters (76%) of UK shoppers agree that the cost of living crisis is impacting their ability to spend this Christmas season, with 60% planning to spend less than last year, according to a poll of Airtime Rewards members.
For those shoppers who are planning to spend less over the holidays, 63% say it’s because they have less disposable income than last year. Similarly, half (52%) are worried about the rising cost of items, and more than two fifths (44%) are worried about the state of their personal finances.
When asked how they are going to be cutting down their spending spending less this year, 63% said they are spending less on gifts and 57% are buying fewer presents. Others are planning on:
- Eating and drinking out less – 42%
- Spending less on groceries – 34%
- Shopping at less expensive retailers – 34%
Josh Graham, chief marketing officer at Airtime Rewards, commented: “The festive season is a time of generosity – and most of us like to spoil our loved ones with gifts and festive indulgence. However, shoppers are feeling the squeeze as the cost of living continues to squeeze their spending ability this year, leaving many having to make the decision to cut back.
“While cost is clearly an important consideration for retailers, they should also be mindful of the consumer mood, and focus on delivering exceptional experiences to build emotional connections with customers and encourage brand loyalty. They should also consider loyalty schemes to give their budgeting conscious customers an opportunity to accrue rewards on their Christmas spending, get more from their money, and step into the holidays with financial peace of mind.”
