QuMind research reveals that over half of Brits will struggle to heat their homes and will not be able to buy as many presents this Christmas
The majority of Brits (80%) are concerned about spending this Christmas, according to new research from customer insights platform, QuMind. 60% of Brits expect to spend less on Christmas this year, with one in 10 (11%) reporting they will reduce Christmas spending by 50% or more compared to last year.
The research, conducted to understand the impact of the difficult financial climate on consumers this Christmas, found that 84% predict their spending this Christmas will be impacted by the cost-of-living crisis, 82% by rising inflation and 72% by rising fuel costs.
More than half believe they will struggle to keep their homes warm over the period (52%) and that they will not be able to buy as many presents (56%) as last year. One third (31%) expect that they won’t be able to have a real Christmas tree. And 43% fear they will not be able to enjoy Christmas as much this year as they will be too concerned over costs.
Commenting on the findings, Mark Ursell, CEO of QuMind, said: “These sobering consumer insights highlight just how much pressure families across the country are under and the impact that the difficult financial situation will have on those that celebrate Christmas this year.”
Changing purchasing behaviour
60% of Brits expect to spend less on Christmas this year, with this group expecting to reduce spending by 30% on last year. 11% of all Brits expect to reduce their Christmas spending by 50% or more compared to last year.
At least half expect to spend less this year on consumer technology (55%), fashion (54%), jewellery (54%) and beauty products (50%). 46% also expect to spend less on toys.
Food and drink purchases will also be impacted. 51% of Brits expect to spend less on alcohol and 39% expect to spend less on food than last Christmas. Supermarkets will have the upper hand in this market; one-third (33%) of Brits will buy supermarket brands over branded goods and 24% will opt for supermarkets over smaller local stores .
In order to manage costs, 36% will do more shopping online to compare prices, 32% will shop in cheaper stores or discount outlets, and 27% will make their purchasing decisions based on price over whether a product is sustainably sourced. Over one quarter (26%) also reported that they will start shopping for Christmas from September to give themselves more time to find bargains, which indicates that retailers may not see the typical growth in sales later in the year.
QuMind CEO, Mark Ursell continued, “Retailers and brands need to sit up and listen to what consumers want and need from them in the run up to the Christmas period. Armed with this understanding, retailers and brands can make the right decisions for their customers and their businesses during what will be a make-or-break period for many. The holiday period should be a time of celebration and it is not too late for retailers and brands to help make that happen just yet.”
When asked what Brits want to see from retailers:
- 49% would like to see price freezes on non-branded products
- 46% would like more loyalty rewards to make items more affordable
- 42% would like to be notified ahead of any sales of discounts
- 41% would like free delivery or collection services