New survey data from Deloitte reveals that nearly 30% of UK consumers are gearing up to tighten their purse strings during this year’s festive season, reflecting the ongoing challenges posed by the cost-of-living crisis.
On a brighter note, the data indicates a 7-percentage-point increase in the number of UK consumers looking to increase their expenditure during the final quarter of 2023. This upswing is partly attributed to individuals prioritizing their savings for the holiday season.
Deloitte’s survey also highlights a growing trend of consumers spreading their spending over the entire quarter. Approximately 32% of respondents express their intent to make the majority of gift purchases in November, taking full advantage of Black Friday and Cyber Monday promotions.
Additionally, 50% of survey participants plan to do their gift shopping in physical stores this year, marking an increase from the 47% reported in the previous year’s survey.
According to Oliver Vernon-Harcourt, the head of retail at Deloitte, the Black Friday and Cyber Monday weekend promotions play a pivotal role for retailers. He expects an overall surge in spending as consumers capitalize on the available sales offers.
These findings from Deloitte mirror those of a similar survey conducted by PwC, underscoring the shared concern among UK consumers regarding potential spending constraints during the holiday season.
Despite challenges such as high inflation and rising living costs, UK consumer demand has remained remarkably resilient this year. While consumer spending experienced a minor setback in September, retailers like Tesco maintain a positive outlook for the Christmas season. Furthermore, retailers such as Sainsbury’s and Marks & Spencer plan to hire additional temporary staff for the holiday season, indicating their anticipation of robust trading.
