Consumers are planning to spend 7% less this Christmas compared to last year, according to a survey by Deloitte. The consultancy warns that retailers are facing one of the “toughest” festive periods for years.
The report, published today (November 12), shows that just 19% of UK consumers expect to spend more than last Christmas, while 24% are planning to spend less. Yet more than half of the respondents said they planned to spend the same amount.
Deloitte estimates that the total average spend per adult in the UK will be £655 on presents, food and drink and going out over the period. Socialising will see the biggest cutback with people planning to spend 12% less on going out.
Meanwhile, consumers are looking for more bargains when shopping for gifts and plans to buy more at supermarkets, where prices are usually lower than on the high street.
The report also found younger consumers do not seem concerned by the credit crunch yet with 36% of 16 to 24 year olds planning to spend more, with nearly half of those planning to enjoy Christmas and deal with the cost later.