Brits dreaming of a cheap Christmas
Tuesday, 22 November 2005 12:00
UK residents are planning to spend less on Christmas this year, as warnings about the spend now pay later culture appear to be hitting home.
A new study by accountancy giants Deloitte calculates that Britons are set to spend £400 million less on gifts and goodies this winter than last.
Additionally, more people will be paying with cash and debit cards - with credit card spending reduced.
This is the first time in 11 years that there has not been a large increase in Christmas spending, with the average Brit predicted to spend £310 each on presents this year, compared with £319 in 2004.
Additionally, four people in five are set to pay for the most of their Christmas shopping using cash or debit cards, hinting credit card use is in decline.
"Consumers are better informed and choosier than ever before," said Sharon Fraser, partner in the consumer business practice at Deloitte.
"In a Christmas market where pundits have predicted 'retail armageddon,' the savvy shopper may well delay shopping in the hope that retailers will cut prices to stimulate demand.
"For this reason gift vouchers are likely to be a popular gift this year for those who want to make the most of the after Christmas sales."
But while Britons economise on gifts and cut Christmas credit card spending, there is a small growth in the amount of money people are planning to spend on food and drink (up £2 on last year) and socialising (up £8).
Regionally, the Welsh are set to spend the most on gifts at £359 a person, with residents of East Anglia set to spend the least at £266 each.
Yorkshire residents are those tightening their belts the most compared with last year - with the average gift spend down £96 this Christmas.
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