Christmas is coming: What Britons will and won’t be spending on this year
According to the Bank of England, a typical household in the UK spends over £2,500 each month. But in the run-up to Christmas, our spending habits change dramatically. Over the Christmas period, we buy A LOT more! Typically, the average household spends over £800 extra in December alone.
The money spent on a lot more Christmas celebrations/going out or buying gifts for family and friends. In December, compared to a typical month: there is a 16% increase in food spending, a 39% increase in alcohol spend, and a 43% increase in clothing spend, but let us see how the global pandemic has changed that for us.
Emotional Logic has conducted new research among 2000 adults within the UK, 51% of consumers will still be shopping for Christmas presents for close family and friends as they did in 2019 even better, 10% are looking to increase their spend on immediate family and friends.
Older consumers will spend more on presents.
Despite COVID-19 affecting Christmas this year, it is not a reason to stop spending. Completely banning gift exchange with loved ones can prevent you from missing out on a connection with family and friends. Psychologists have found that giving a gift is quite a complex and part of human interaction – it helps to define relationships and strengthen bonds with family and friends. In light of that:
65% of those over 65 are planning on spending the same as they did in 2019 – compared to 52% of 45-54-year-olds and 40% of 25-34-year-olds.
When shopping for Christmas presents for close family and friends: males are going to be spending 4% more than females.
Clothing spends likely to be 1/3 lower than in previous years.
During the festive season, there are a lot of events and festivities, which results in us buying plenty of outfits for the occasion. Having mentioned earlier, around the Christmas period: there is a 43% increase in clothing spend, but this year there is only going to be an 11% increase. 22% of respondents say they aren’t going to be purchasing clothing for themselves at all because of the current restrictions.
Restaurants might suffer over Christmas as Brits are not eating out as much.
Although going out for food and drinks is usually at the top of everyone’s priority list at Christmas – this year we, are expecting a change with 34% of Brits planning on going out significantly less/fewer than in 2019 and 29% not planning to go out at all.
The younger generation, the more they will be going out for meals and celebrations – 15% of 18-24-year-olds will be going out for more meals than what they did in 2019, compared to only 3% of 45-54-year-olds.
Almost half of the consumers are still buying new decorations.
Brits are keen to deck their halls, with 46% of respondents still planning on buying new Christmas decorations and spending the same as they did in 2019.
Food consumption at home is still going to be a Christmas success.
When you ask someone what their favourite moment about the Christmas period is – 75% of Brits will reply, food. Spend on food for consumption at home will not be decreasing, with 53% of people consuming the same as in 2019 – young people (18 – 34-year-olds) are going to be spending more (33%) on food, compared to 10% of those aged 65 and above.
14% of the younger generation are not planning on drinking alcohol at all
With food comes drink. On average, consumers will be spending the same as on alcoholic (48%) and non-alcoholic (58%) beverages as they did in 2019. However, 42% of 18 – 24-year-olds are going to be buying significantly less/fewer alcoholic beverages over this Christmas period, with 14% planning on not buying at all.
Overall spending habits – Christmas data 2020
Whether you need insight to adjust your strategies to the new normal or are thinking about launching new services, we can help you get it right. Emotional Logic is a specialist behavioural insight agency, and we offer a range of cost-effective research solutions to ensure your strategy connects with the constantly shifting needs of the consumer. Please get in touch for a free consultation.