Half of shoppers plan to spend less this Christmas as cost of living crisis bites, says Kantar

Around half of British consumers plan to spend less on Christmas this year as the cost of living crisis bites, according to a major survey.

The data from Kantar concluded that 37 per cent of consumers are struggling with their finances which means retailers and brands will need to work harder to attract customers this year.

In a statement, Kantar said: “The next few weeks will be especially critical for consumer businesses, with competition on the high street likely to be fierce even right up to the big day.

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"While 5 per cent of people said they have already bought all their presents, the number of those leaving their shopping to the last minute has nearly doubled from 4 per cent in 2020 to 7 per cent this year.

“There has been a dramatic increase in the number of people worried about Christmas, with the figure hitting 47 per cent in 2022; a rise of 15 percentage points since 2021.

"With the inflationary backdrop, brands will need to ensure their Christmas advertising campaigns strike the appropriate note with the public.”

“Only 18 per cent of consumers strongly agree that they are looking forward to festive ads this year, down 5 percentage points since 2021. Some people also say they feel these ads set unrealistic expectations for spending.”

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One in three of those who are planning to cut back plan to do so by at least £25, according to the survey's findings.

New data from Kantar reveals that 50 per cent of consumers plan to spend less on Christmas this year as the cost of living crisis bites.New data from Kantar reveals that 50 per cent of consumers plan to spend less on Christmas this year as the cost of living crisis bites.
New data from Kantar reveals that 50 per cent of consumers plan to spend less on Christmas this year as the cost of living crisis bites.

Lynne Deason, head of creative excellence at Kantar, commented: “It’s been another tough year for many people and brands need to be careful to get the right tone this Christmas.

"We’ve seen a significant jump in the number of consumers who are worried about money and the emphasis for many will likely be on getting back to the true meaning of the festive season, focusing on togetherness, kindness and generosity.

“Brands must be sensitive to this emotional context and the reality of people’s financial positions, particularly in their advertising campaigns. She added: “There’s been a clear shift in public sentiment around Christmas ads and brands will need to balance celebration and excess in their content in 2022.

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"That doesn’t mean, however, that they should fall into the trap of gloomy, downbeat ‘sadvertising’.