UK households plan to rein in festive spending, survey finds

Accenture’s 2020 UK Festive Shopping Survey shows an increase in consumers planning to spend less on festive purchases this year (36%), more than doubling from 13% who planned to spend less in 2019. Only 13% of people plan to spend more, down from 31% last year, the research reveals.

In addition, many plan to shop more responsibly: 63% said they would shop more consciously to limit food waste this festive season, while a similar proportion (64%) said they would be open to receiving homemade gifts this year, with 51% open to giving them.

The research also shows that 48% of respondents said they would be inspired to shop with a retailer who has supported their staff and customers through the Covid-19 crisis and 51% would buy more locally sourced products.

Food and drink is set to be the most popular gift option, according to the survey, with 65% of respondents saying they would be buying the same or more than last year. Health and beauty will also be popular, with 63% saying they would be buying the same or more than last year.

Andrew Carlisle, Accenture Retail consulting lead for UK and Ireland, said: “This is a make or break Christmas for retailers – getting it right has become all the more crucial as the second lockdown starts to bite and modes of shopping become more constrained. While shoppers are clearly feeling the Covid pinch and are scaling back festive buying, the desire to spend and celebrate has not gone away as they become more discerning on where to spend their hard-earned cash.

“Despite the challenges of the pandemic, consumers are giving retailers little room for error when it comes to fulfilment delays or long queues to maintain in-store safety.

“There are, however, glimmers of hope for those retailers who are experimenting with new ways to overcome the pandemic once the immediate lockdown passes, through appointment-based shopping or harnessing technology for seamless in-store experiences.”