More UK consumers are planning to increase their Christmas spending this year compared with last year in positive news for retailers, a survey suggests.
Deloitte’s Consumer Tracker poll of more than 3,100 shoppers about their spending intentions in the final quarter revealed 26% intend to spend more this festive season, up from 19% last year.
However, 29% still say they will spend less, although this is down from 39% last year.
The Black Friday and Cyber Monday weekend promotions are critical for retailers, and we expect overall spending to increase again this year as consumers try to make the most of the available sales on offer— Oliver Vernon-Harcourt, head of retail at Deloitte
One in three consumers (32%) say they will buy the majority of their gifts in November, making the most of promotional events such as Black Friday and Cyber Monday, according to the survey.
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “The long-term impact of the cost-of-living crisis has suppressed consumer spending power, but it appears as if consumers are still willing to spend more at Christmas by prioritising it over other spending.
“The Black Friday and Cyber Monday weekend promotions are critical for retailers, and we expect overall spending to increase again this year as consumers try to make the most of the available sales on offer.”
The research also found that UK consumer confidence improved for a fourth consecutive quarter, increasing by two percentage points to its highest level since the last quarter of 2021.
Four consecutive quarters of growth in consumer confidence provide further evidence of the UK consumer’s ability to adapt to challenging economic circumstances— Celine Fenech, consumer insight lead at Deloitte
Celine Fenech, consumer insight lead at Deloitte, said: “Four consecutive quarters of growth in consumer confidence provide further evidence of the UK consumer’s ability to adapt to challenging economic circumstances.
“Wages have been growing faster than prices for several months, helping to bolster household finances from the impact of higher interest rates.
“Consumers have also shown a degree of resilience throughout the cost-of-living crisis, adopting recessionary behaviours, such as buying supermarket own-brand goods, to maintain their standard of living and cope with unexpected price rises in the cost of energy, housing and food.”
YouGov surveyed 3,189 UK adults between September 15-21.
