NEWS24 October 2022

Consumers set to cut Christmas spending this year

Cost of Living News Retail Trends UK

UK – Half of consumers will be spending less this Christmas due to the cost-of-living crisis, according to data from Kantar.

Oxford Street, London

Kantar’s data also showed that one in three of those shoppers said they would cut gift budgets for close friends and family by more than £25 per person.

The findings are based on an online study carried out in Great Britain via Kantar Research Express, using a nationally representative sample of 1,249 adults aged 16 and over.

Kantar said that 37% of consumers are struggling with their financial situation, which will mean brands and retailers will need to work harder to attract customers.

There was also a big rise in the proportion of people worried about Christmas, up 15 percentage points to 47% in 2022 compared with the previous year.

Only 18% of consumers said they were looking forward to Christmas advertisements this year, down five percentage points from 2021, with some respondents claiming the adverts set unrealistic expectations for festive spending.

Lynne Deason, head of creative excellence at Kantar, said: “It’s been another tough year for many people and brands need to be careful to get the right tone this Christmas.

“There’s been a clear shift in public sentiment around Christmas ads and brands will need to balance celebration and excess in their content in 2022. That doesn’t mean, however, that they should fall into the trap of gloomy, downbeat ‘sadvertising’.

“Christmas ads continue to play an important part in kicking off the festive season for many people and giving them a boost, but brands must ensure they deliver their messages in a way that doesn’t feel out of reach or out of touch this year.”