UK shoppers are feeling more optimistic about the festive season with the easing of financial pressures facing UK households, according to the latest consumer insight from Asda.
The supermarket’s latest income tracker revealed that the average household disposable income increased by 12% year-on-year in October, the fastest rate of growth in more than two years.
In tangible terms, the average UK household was £23.04 per week better off in October compared to a year earlier, Asda added.
This is also the first time in more than two years that all households had some disposable income left at the end of the month after paying bills and essentials.
The rise in household disposable income is a result of continued annual wage growth and a sharp decline in inflation, driven by notable falls in gas and electricity prices compared to the previous year.
Consumer Optimism
More than a quarter (27%) of consumers who took part in Asda’s latest consumer survey said they were excited about Christmas, compared to just 18% last year, indicating an increase in optimism.
However, many shoppers are wary of buying festive gifts because they believe better deals will be on offer closer to Christmas.
Last year, around 40% of shoppers had already started festive shopping at this time. This year, just 30% have begun looking for gifts.
Asda's income tracker is independently compiled by Cebr (Centre for Economics & Business Research).
It has become an established barometer of disposable income, indicating how much families have left in their pockets after all taxes and essential bills are paid.
‘The Score’ includes a weekly survey of 2,000 UK consumers, tracking customer attitudes and changes in behaviour in response to topical issues.
Christmas Offer
Asda has launched 275 new festive lines in the run-up to Christmas, including products that have scooped awards in the Good Housekeeping and BBC Good Food taste tests.
The supermarket also aims to make Christmas affordable for all customers and has launched a frozen Christmas dinner for six that costs £25.
This works out at £4.17 per head and all the products featured are cheaper than last year by an average of 8%, Asda added.
The retailer is also offering Asda Rewards app customers a cash bonus of up to £5 later this month for saving money in their Christmas Saver Cashpots.
Moreover, people aged 60 and over can enjoy soup, a roll and unlimited tea and coffee for just £1 in any of Asda’s 205 cafes until the end of February.
