UK Consumer Spending Set To Drop This Christmas
At this time of year, the focus of many within the clothing photography industry, fashion, retail and e-commerce sectors is firmly set on the Christmas period. This will come as no surprise to readers of this article and sadly what will likely also not be surprising is the headline that UK consumer spending is set to drop over the Christmas period of 2022.
With such challenging events happening in the world, causing inflation and a cost-of-living crisis then it shouldn’t come as much of a surprise that this is the case. However, let’s look at the research and delve deeper into this story.
What does the research tell us?
The headline figure from research by Deloitte is that 59% of consumers in the UK plan to reduce their spending this Christmas, as they will have less disposable income due to the cost-of-living crisis. This was a survey of more than 3,000 consumers in the United Kingdom, focusing on the most important period in a retailer’s year.
So how will this change in spending habits happen?
Researchers found that 38% of the people who responded intended to choose cheaper brands for gifts, compared to their normal options. Further to that, over 10% of respondents stated they plan to buy gifts via resale platforms and would be content with giving second-hand gifts. This has a clear link to the growing importance of sales like Black Friday, Cyber Monday and general discounts allocated by retailers.
Adding to the gloom for retailers and those working in clothing photography is the 8% of people who will not be buying gifts at all for Christmas. Even for those that do plan on buying gifts, the majority expect to spend more due to increased prices as a result of inflationary pressures.
Other spending statistics
Barclaycard has put together its own research on card spending habits, with some surprising headline numbers, as shown below:
- 21% of British consumers plan to set limits on gifts for family and friends this year
- 19% state they have started shopping for Christmas presents earlier to help spread the cost of items
- 10% of consumers plan to use resale and second-hand platforms to find gifts for loved ones this year
- Spending in the hospitality sector has struggled due to a combination of cost-of-living and rail strikes, reducing the expenditure of consumers on drinks and food.
- There has been a growth in subscriptions and takeaways according to Barclaycard, pointing to continued struggles for hospitality outlets this Christmas.
What have the experts said?
Deloitte’s Oliver Vernon-Harcourt reinforced the belief that people will be adapting spending plans either by reducing who they buy for or by focusing on savings. The market for second-hand items and resale platforms has shown significant growth in recent years and this will present many consumers with an opportunity for cheaper alternative gifts this Christmas.
Another expert from Deloitte added that the promotional ranges and sales by retailers will take on increased importance this year.