UK festive spending set to rise to £24.6bn, PwC survey finds

UK shoppers are anticipated to spend £24.6bn on presents and celebrations this Christmas, a 3.5% enhance on final yr, in accordance with new analysis by PwC.

PwC’s Festive Predictions Survey forecasts common spending of £461 per grownup over the interval, up from £449 in 2024, regardless of continued strain on family funds and a extra cautious outlook amongst some age teams.

The survey discovered that 15% of consumers plan to extend their festive spending in contrast with final yr, whereas 14% anticipate to spend much less. That represents a extra subdued image than in 2024, when one in 5 shoppers mentioned they’d spend extra.

Youthful adults are forecast to be the largest spenders. Nearly a 3rd of these aged 18 to 24 mentioned they’d enhance their spending this yr, with common outlay within the group anticipated to succeed in £541 per head. These aged 25 to 34 are projected to spend £476 on common, with 21% planning to spend greater than final Christmas.

In contrast, older shoppers usually tend to rein in spending. PwC discovered that 18% of 35 to 44-year-olds and 14% of 45 to 54-year-olds anticipate to chop again, with the latter group forecast to spend the least per head at £436.

Girls are anticipated to spend greater than males general, with common festive spending forecast at £471 per head, in contrast with £452 for males.

Amongst shoppers planning to spend much less, the price of dwelling was probably the most generally cited purpose. Greater than a 3rd mentioned that they had much less cash obtainable, whereas the same proportion reported that their private funds had worsened over the previous yr. Fewer pointed to issues about authorities coverage or the Price range as a purpose for reducing again.

Foods and drinks is once more anticipated to be the most important space of festive spending, with 27% of shoppers planning to spend greater than final yr. Well being and sweetness merchandise are forecast to be the third-highest precedence, overtaking clothes and know-how, notably amongst youthful consumers.

PwC discovered that customers proceed to favour early Christmas procuring, with 46% saying that they had completed shopping for presents earlier than the beginning of December. Greater than half of consumers anticipate to finish most of their spending in early to mid-December, whereas 8% plan to go away it till the ultimate week earlier than Christmas.

On-line procuring is ready to dominate, with 64% of festive purchases anticipated to be made on-line, together with click-and-collect orders. That’s the highest proportion because the finish of the pandemic, leaving simply over a 3rd of spending going down in bodily shops.

Jacqueline Windsor, head of retail at PwC UK, mentioned: “The problem is to steadiness competing shopper priorities by providing sensible and joyful merchandise at completely different value factors.

“Regardless of a sluggish begin to the festive interval, the vast majority of Christmas procuring is finished in December, and shoppers are inclined to spend greater than they anticipate. It’s nonetheless all to play for the retail and hospitality sectors within the closing weeks earlier than Christmas.”