Reports indicate a tough road ahead for festive sales in the UK, as mounting living expenses continue to impact consumer spending. According to a survey by Park Christmas Savings, Christmas 2023 is projected to cost UK families over £730. However, due to the increased cost of living, Britons are planning to cut back on their festive season spending.
The survey, conducted among 2,000 UK adults, reveals that Christmas is the most stressful time of the year, with finances ranking as the leading cause of stress. A significant 71% of consumers struggle to budget for Christmas, and over half (55%) admit to delaying their Christmas financial planning, with October being the period when most begin to consider their festive expenditures.
The planned spending figure of £730 represents a noticeable decrease from the £900 spent in 2022. Given the impact of inflation over the past year, this decline is even more substantial than it appears on the surface. The survey highlights that 23% of respondents are more concerned about affording Christmas this year due to the ongoing cost-of-living crisis.
This trend aligns with previous reports suggesting that UK consumers will exercise caution with their spending during this festive season. The situation is further exacerbated by the fact that last year’s spending was driven by pent-up demand after years of limited social activities due to the pandemic.
For the fashion sector, these challenges are particularly concerning. Discretionary items like party wear are among the first expenses to be cut by budget-conscious shoppers. With expectations of reduced socializing this year, the demand for new party attire, including clothes and shoes, is likely to decrease.
