'Tis the season...to spend lots of cash

Related tags Christmas

Christmas in the UK is a time of tradition - turkey, mince pies,
carol singing... and huge amounts of over-spending. The latest
report from market analysts Mintel reveals that Britons are
likely to continue this last tradition this year, with consumer
spending set to rise by 7 per cent.

Father Christmas may be particularly jolly this year as analysts anticipate an increase in UK consumer spending, up 7 per cent from last year.

Research from market analysts Mintel​ found that out of 1,024 adults questioned, some 35 per cent of consumers were likely to spend more this year - with young families and the youngest age groups being the prime spenders. In addition, only 25 per cent of shoppers are concerned enough about the state of the economy to think that it may have an affect on their Christmas spending.

According to the report, the average adult is expected to spend a generous £318 (€499) on pressies for close family and friends this Christmas - but there are wide variations on this figure, with men (£324) likely to spend a fraction more than women (£312). Age also looks likely to play a role on spending with some of the largest differences occurring by age group. Mintel suggests that the potential amounts to be spent range from £220 among 16-24 year olds up to £450 among the 35-44 age group.

Online shopping appears to be gaining in favour with some 22 per cent of adults likely to shop via the Internet, rising to a healthy four in ten individuals among 16-19 year olds. Food shopping in out-of-town locations is looking good with the Mintel report anticipating that 53 per cent of adults plan to Christmas shop in a grocery superstore and 51 per cent in out-of-town shopping centres.

Although over half of adults usually spend more than they plan to, relatively small numbers (15 per cent) are prepared to go into debt in terms of increasing an overdraft, spending more on a credit card or taking out a loan. Given the pressures on consumers, particularly families, to spend at Christmas this is surprisingly low, remarks Mintel, but, the company counters, perhaps some are reluctant to admit going into debt.

And the January sales? According to the report there has been a dramatic decline to 27 per cent in the number of consumers planning to keep some money back to spend in January sales, compared to last year's 40 per cent.

"It seems the popularity of the January sales has been waning over recent years and this is largely a reflection of a retail market where there is more focus on price generally and more frequent sales throughout the year. There has also been a trend towards retailers starting their sales in December, as a result January sales have become less influential. For shoppers, missing the January sales is no longer a big loss as they know they won't have to wait long for the next sale period and many retailers they shop at are offering value prices on a permanent basis,"​ commented Richard Caines, retail analyst at Mintel.

So, Christmas in 2002 looks set to be full of cheer, mince pies, and satisfied tills - particularly as most consumers admit to going "over-budget" when scouring the shops.

Related topics Market Trends

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