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7 percent fall expected in Christmas spending overall

December 15, 2008 by admin  
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According to recently released figures an overall fall of around 7 percent is expected in Christmas spending for this year, as consumers continue to try and cut back on their expenditure. The cutbacks will be made in a range of areas, such as gifts, food, clothes, entertainment, and socialising. The survey was carried out by research group Deloitte, and showed the different areas in which people were planning to cut back on their Christmas spending.

One worrying aspect of the results of the survey was that a large number of people aged between sixteen and twenty four years said that they planned to have a good time over Christmas and worry about the cost once the festive period was over.

One official said: “This age group has grown up in an affluent society with technology products and designer wear, are comfortable with debt, and have never been in a recession. Their high propensity to spend represents an opportunity for those retailers targeting younger customers.”

Richard Hyman, strategic advisor to the retail practice at Deloitte, said: “I think the main headline is this is worst Christmas for a generation. But as a nation we’ll be spending £36bn so it’s not a total disaster. Broadly speaking, we believe sales will be flat this Christmas, with a slight fall possible.”

The average spend per adults over Christmas is likely to be around £655 according to the report, and of those polled around 19% planned to spend more on Christmas this year compared to last, despite the difficult financial situation. 24% of consumers plan to spend less this Christmas, but around 57% plan to spend the same as they did last year.

Tags: holidays, research, Business Finance, Verdict Research, Deloitte, Opinions, financial situation, consumers

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