For the first time since 2021, retail is forecast to enjoy a bumper golden quarter as consumers show renewed confidence in the UK economy.

Packages in front of a Christmas tree

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Brits are expected spend more than last year this golden quarter

This year, 67% of Brits plan to spend the same or more than last year during the golden quarter, compared with just 45% in 2022, new research by Havas Media Network has revealed.

Around 8 million adults in the UK are expected to increase their spending this Christmas, while 3.7 million fewer adults expressed concerns about being able to afford Christmas compared with 2022.

The categories that will see the most notable boosts are food and drink, clothing and health and beauty with 29%, 24% and 20% of people expected to spend more on them respectively.

A quarter of Brits expect to begin Christmas shopping as early as October this year, extending the festive shopping period to Black Friday and Cyber Monday.

Two in five people surveyed said they rely on online searches to find gifts, while one in five said they turn to social media for Christmas shopping ideas.

In a boost to the high street, more than half of consumers (53%) are eager to return to in-store shopping this Christmas.

Jackie Lyons, chief planning officer at Havas Media Network, said: “Although inflation continues to rise, it’s at a slower rate and households are adapting by becoming increasingly financially savvy.

“To cut through the Christmas clutter and appeal to these discerning shoppers, brands need to focus on two key strategies.

”Firstly, they must be more relevant than ever by addressing genuine consumer needs and adapting to evolving behaviours. Secondly, finding innovative ways to stay salient by maintaining emotional connections with customers will be crucial.

“Leveraging digital channels, data and AI to create personalised and engaging campaigns will help to achieve this. Brands that authentically align their festive strategies with these insights will lead the way this holiday season.”