The latest research from product intelligence platform Vypr has identified consumer concern over costs in the year’s run-up to Christmas. In a nationally representative study, around 9 in 10 people are concerned about Christmas costs, with 56% saying they are very concerned and 33% feeling moderately concerned.
Vypr asked a sample of its 65,000-strong community how they planned to spend over the festive period in terms of shopping, eating out and overall celebrations. With inflation in the UK rising beyond expectations (10.1%- according to ONS), 53% of respondents plan to spend less overall this festive season. 35% plan to spend less on their Christmas shopping.
With concern over rising costs, consumers are looking at all aspects of their spending to make cutbacks with less eating out and drinking than in previous years. For example, 45% of respondents are cutting back on festive meals, while 42% anticipate reducing their spending on gifts.
Commenting on the research, Ben Davies, Consumer Intelligence Expert and Founder at Vypr, said:
“We’re in the midst of a 2nd ‘once-in-a-generation’ crisis in the space of 3 years, and it’s clear that consumers are feeling worn down, whilst being highly anxious about household budgets as we approach Christmas.
“The only prediction we can make is that this Christmas will be very different & subdued to pre-pandemic festive periods in terms of allocation of in-home and out-of-home household spending. The discounters are likely to win big in food & drink, whilst e-commerce players offering strong value propositions will be the ones that win in non-food.”
Vypr has produced a free guide based on the research, which details the impacts across each demographic. Please find the eBook here https://vyprclients.com/christmas-shopping-behaviours-a-trend-analysis-site/ [Gated]
To understand shifts in consumer behaviour and purchasing intent weekly, Vypr’s consumer spending tracker can be accessed here.