Nearly half of UK households (47%) do not expect cost of living pressures to affect their Christmas spending this year, signalling a thawing of the post-Covid economic freeze even though a third (32%) expect they will spend less, buying fewer presents and finding cheaper food alternatives.
New research conducted by global data and insights company Pureprofile reveals that Brits plan to spend an average of £362 on gifts – up 10% from last year – and £317 on festive food and drink, up nearly 60%, in part reflecting higher costs.
Now in its sixth year, Pureprofile’s 2024 Christmas Report is based on the insights of its 4,300-strong consumer panel across the UK, US, Australia, New Zealand and Singapore.
While over half (53%) of Brits feel emotionally positive towards the festive season, two thirds (69%) say they are negatively impacted by various factors at Christmas.
This is a rising trend (66% in 2023, 67% in 2022 and 63% in 2021) and the UK also has the highest proportion of people who view the festive period with outright negativity (13%). Demands on finances (33%), ‘pressure to be happy’ (23%) and family estrangement issues (14%) are the top reasons.
Out of all nations surveyed, UK shoppers emerge as the quickest to embrace the festive spirit with two in five (40%) starting Christmas shopping in September or October. Yet over a quarter (27%) leave their shopping until December, and 29% feel annoyed when they see Christmas decorations appearing in the shops.
Pureprofile UK, EU and US managing director Tim Potter said: “Each year our Christmas Report sheds light on the way societal shifts and economic realities are influencing how we live, spend, and celebrate.
“In the UK, we are seeing a loosening of the purse strings with the average household planning to boost their spending and half feeling unaffected by cost of living pressures this Christmas.
“But digging deeper into the figures, the British display highly polarised attitudes towards spending and gifting, family gatherings and Christmas preparations. More than one in ten feel negatively towards the festive period, would be perfectly happy receiving no gifts and spending ‘me time’ on the big day. Whether they all get their wish is another matter!
“Out of all markets surveyed, UK consumers embrace online Christmas shopping with the greatest fervour, with 60% preferring online to in-store. Retailers seeking to attract shoppers back to the high street should bear in mind that displays of festive glitz in autumn are more likely to irritate than excite a third of the population.”
Globally, money and gift cards dominated the list of gifts that people wished for the most. In the UK, clothes or shoes came out on top (39%), narrowly beating food and drinks (37%), gift cards (35%) and money (35%). Skincare (31%) and books (28%) remain popular gift items.
The most underrated gifts appear to be money (35% hoping to receive versus 29% intending to gift), followed by homemade gifts (17% versus 11%). Some 14% of people don’t want to receive any gifts at all.
Debit card remains the clearly preferred payment method in the UK (62%) for Christmas gifts. Cash (44%) and credit cards (37%) are also popular Buy-Now-Pay-Later remains an unpopular option with only 6% of people considering this option.
Most respondents claim to be influenced more by price than quality when buying gifts, although the UK is more equal across both measures (price 75%, quality 72%).
Discounts (38%) and convenience (37%) have significantly less impact on purchasing decisions. This may explain why offering a promotion with a percentage reduction has significantly more appeal for British consumers (cited by 41%) than free shipping (20%) or buy one, get one free (16%).
The majority (60%) prefer to shop online rather than in-store (40%). Interestingly, despite the growing usage of AI, less than one in ten (8%) are expecting to use it to help with holiday planning this year, preferring traditional approaches with a human touch.
The Pureprofile research indicates that around half of the nation (48%) would most like to spend Christmas enjoying a meal with their family. For those who would like to get away, 17% would choose a wilderness cabin in the snow, and 15% a hot day on the beach. Some 12% would prefer to spend some quality ‘me time’ alone on Christmas day. For 9%, the best option is Christmas lunch in a fancy restaurant.
Less than half (43%) of UK households intend to travel this Christmas; just 6% are planning an international holiday, with most travellers visiting a local destination.
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