Most UK households would like to celebrate Christmas like they have always done – without cutting spending – according to new research from NielsenIQ.
The NielsenIQ Consumer Insights study ‘Unwrapping Europeans’ Holiday Outlook’ shows that 54% of consumers in the UK are Christmas enthusiasts for whom emotional aspects such as enjoying the holidays with their family and celebrating with friends are very important. Cautious Christmas shoppers, which represent 39% of consumers, are strongly affected by the increase in gas and energy prices and are likely to reduce spending or advance purchases in expectation of even higher prices.
The expected expenditure this Christmas is equal or less than last year, according to the data. It shows that 63% of UK households stated their budget on food and beverages (at home or dining out), gifts and travel will be the same with 2021’s budget, while 27% would like to spend less money on these categories this year, and 10% of the shoppers indicate they will increase their budget for Christmas.
Alwyn Venter, Senior Commercial Business Partner at NielsenIQ, said: “In our Christmas study, we’ve seen how much emotional value the holiday has for consumers in the UK. The majority do not want to give up the usual traditions and spoil themselves and their loved ones with gifts and good food. At the same time, the budget for the festive season has remained the same or even decreased for most people. Consumers are aware of how important it is, therefore, to make the most of their budget, for example by shopping early and taking advantage of special offers.”
The research shows that particularly when it comes to food (34%) and gifts (31%), UK shoppers are likely to take advantage of Black Friday and Cyber Monday to buy gifts for themselves, their homes or other people in advance. Supermarkets are the most popular shopping channel for food, beverages hygiene & beauty as well as gifts. In addition, the data shows that 59% of the consumer spending on beverages will be made in a physical store and 51% of the food shopping will take place in a supermarket.
Cheese (68%), bread (66%) and chocolate (60%) are the top three food categories which UK consumers plan to buy this Christmas. In the beverage category, beers (52%), soft drinks (49%) and wine (37%) will also feature in shopping baskets. Despite looking for more promotions, UK shoppers would not give up premium purchases during Christmas, with 37% of the respondents stating they will purchase premium cheese, fresh meat and chocolate tables; 35% favour premium beer and 36% will choose premium wines.
Among the Christmas gifts UK shoppers will be giving out this year, clothing (43%), fragrances (37%), gift cards (35%) and gourmet products such as chocolates, sweets and wines (35%) are the most popular categories.
