UK shoppers are looking to cut back on their spending this Christmas, with 32% planning to spend less on decorations, and 28% spending less on going out, according to new research from retail marketing agency Savvy.
A survey by the group revealed that 22% of consumers plan to buy fewer gifts this year, while 63% intend to shop around in order to save money on their groceries.
“Savvy’s latest research suggests that the slowing retail spending momentum we’ve seen in October and November is likely to continue throughout the Golden Quarter, as cautious shoppers watch their spending this Christmas," said Alastair Lockhart, insight director at Savvy.
"Reduced consumer confidence and uncertainty as we enter 2018 means shoppers say they plan to cut back on their Christmas spending in a number of areas."
Spending Trends
According to the survey, 58% of shoppers purchased Christmas gifts in the first couple of weeks of December, 24% purchased gifts throughout the year, and 21% on Black Friday.
Meanwhile, 25% will leave shopping until the week before Christmas, and 10% will be making last minute purchases.
UK retail sales rebounded last month, according to latest figures from the British Retail Consortium, fuelled by higher food spending. However, Lockhart says that many retailers are still feeling nervous in the run up to Christmas.
"Black Friday discounts were broad and deep at many retailers – more the feeling of the January Sales than a one-day spectacular," he added.
"A toxic combination of weak sales momentum and discounting could have worrying implications. Retailers will be hoping for a pre-Christmas sales surge in the final weeks.”
Christmas Groceries
Additionally, Savvy's research reveals that 30% of shoppers plan to do their main Christmas food shop at Tesco, with 76% overall shopping at the UK's 'Big Four' - Tesco, Sainsbury's, Asda and Morrisons.
Meanwhile, 12% of consumers plan to purchase at discounters Aldi and Lidl, and 6% will use a premium retailer.
The latest figures from Kantar Worldpanel, released yesterday, reveal that Aldi remains the UK’s fastest-growing supermarket ahead of the Christmas season, while Tesco is growing faster than the remainder of the ‘Big Four’.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
