New research shows that more than half of UK shoppers intend to cut back on Christmas spending this year. A survey of 1,000 consumers revealed that 53% will spend less on festive groceries, while 55% plan to reduce gift purchases. These adjustments come as rising energy costs tighten household budgets ahead of the holiday season.
Consumers are adopting practical measures to manage expenses. Nearly 68% will use retailer loyalty points during December, and 82% expect supermarkets to offer more food and drink promotions. Two-thirds (64%) will begin buying presents earlier to spread costs, while 51% intend to shop more on Black Friday than in previous years. Meanwhile, 41% continue to delay purchases until late December, hoping for pre-Christmas discounts.
Supermarkets are adjusting their strategies in response. Tesco remains the top choice for main Christmas food shopping, selected by 31% of respondents. Sainsbury’s follows with 18%, while Asda accounts for 12%, Aldi 10%, and Lidl 8%. Mid-range chains like M&S (7%) and Morrisons (6%) also attract significant customer share.
Dining out may see reduced activity this Christmas. Half of shoppers (51%) said they would eat out less than last year, compared to 41% who expect to dine out more. The data indicates a continued preference for home-based celebrations, driven by cost-saving habits that emerged earlier in 2023.
