While the build-up to the golden quarter has been glacial, new predictive data from PwC shows that consumers are set to spend big this Christmas.
PwC’s latest Festive Predictions Survey shows that UK consumers are expected to spend £22.7bn on festive gifts and celebrations this year – a 5% increase year on year.
Average spending per consumer is expected to jump from £416 to £433 – surpassing the levels seen over the past two years and comparable with the first post-pandemic festive season back in 2021.
The survey found that younger customers will be leading the charge on spending more this Christmas, with 29% of 18-24 year-olds planning to spend more than last year, followed by 25% of 35-44 year-olds. However, it’s the 45-54 age group that are expected to spend the most, with an estimated £463 on presents per person this year.
Despite what PwC calls a “modest increase in planned outlay over the festive period,” it said that consumers’ net spending intentions are more positive this Christmas than in 2023 and 2022 across all major categories.
Food and drink is the top spending priority for most and particularly those aged 45 and above. Fashion is the third biggest spending priority amongst adults and the most important category for those under 25. Meanwhile, electricals and technology has jumped from customers’ ninth most important category to the fifth in 2024 and is set to be the top spending category for 35-44 year-olds.
PwC found that spending will be evenly split between physical stores and online this Christmas, with 55% of survey respondents planning on home delivery and 10% on click and collect, with the rest (36%) being bought in-store.
Lead of industry for consumer markets at PwC Lisa Hooker said: “After volume declines for most non-food categories in 2024, it is good to see a relatively strong end to the year with increased spending over Black Friday, which is expected to continue over the festive period. Despite better economic indicators and growing disposable income, consumers have been showing a level of caution across autumn. With the Budget behind us, more certainty on taxes and a desire to make time together more special, we are cautiously optimistic about the outlook.
“As usual the winning category is food and drink with growth in the premium ranges exceeding value ranges as customers want to selectively treat themselves and their families. It is encouraging to see clothing and electricals increase in importance as we dress for disruption-free Christmas celebrations and embrace the latest technology trends.”
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