54% of consumers plan to stick to spending this Christmas, study finds

Some 54% of UK consumers are Christmas “enthusiasts” and will not change their Christmas plans despite economic challenges, according to Nielsen’s Unwrapping Europeans’ Holiday Outlook’ report. The survey of more than 1,000 people in the UK found that while increased food and energy prices as well as possible supply bottlenecks have an impact on consumer preferences, the majority of UK households would like to celebrate Christmas “like they have always done” - without cutting spending. With 54% set to be unchanged in their spending decisions, it found that cautious Christmas shoppers represent 35% of consumers. This group revealed they are “strongly affected” by the increase in gas and energy prices and are likely to reduce spending or advance purchases in expectation of even higher prices. In addition, some 63% of UK households stated their budget on food and beverages (at home or dining out), gifts and travel will be the same with 2021’s budget. 27% would like to spend less money on these categories this year and 10% of the shoppers indicate they will increase their budget for Christmas. Cheese (68%), bread (66%) and chocolate (60%) are the top three food categories which UK consumers plan to buy this Christmas. In the beverage category, beers (52%), soft drinks (49%) and wine (37%) will also feature in shopping baskets. Despite looking for more promotions, UK shoppers would not give up premium purchases during Christmas. Some 37% of the respondents stated they will purchase premium cheese, fresh meat and chocolate tablets; 35% favour premium beer and 36% will choose premium wines. Among the Christmas gifts UK shoppers will be giving out this year, clothing (43%), fragrances (37%), gift cards (35%) and gourmet products such as chocolates, sweets and wines (35%) are the most popular categories. 51% of the consumers say they will get inspiration from the Internet while 49% will visit physical stores. Alwyn Venter, Senior Commercial Business partner at NielsenIQ, said: "In our Christmas study, we’ve seen how much emotional value the holiday has for consumers in the UK. The majority do not want to give up the usual traditions and spoil themselves and their loved ones with gifts and good food. “At the same time, the budget for the festive season has remained the same or even decreased for most people. Consumers are aware of how important it is, therefore, to make the most of their budget, for example by shopping early and taking advantage of special offers.”