Each year, in a blink of an eye, Santa Claus comes to town again. From decorations and lights going up as early as November 1st to the last-minute shopping rush on December 24th, Christmas is undefinably an exciting season many people look forward to celebrating.
According to some research, 1 in 10 brits begin their Christmas shopping as early as July. But what will people’s spending habits be like this holiday season?
What changes are happening to Brits spending budget?
Although we spend more money, on average 29% more, on fun and festivities during the Christmas months, 2021 may be slightly different from previous years.
This year will see a 6% drop in the number of people buying gifts from 97% to 86%. This percentage comes from over two-thirds of the UK deciding to cut down on how much they spend on gifts this year by setting a limit or taking advantage of sales (like Black Friday). Some have even decided to be crafty and save money by reusing gift packaging or making their own presents.
Considering that COVID may have caused financial troubles for many families, it is understandable that this year would see many people keeping an eye on their spending. However, business owners will be happy to know that the average spending costs for British adults this year will be around £548, increasing last year’s budget.
How will spending differ between genders?
Statistics will always find different patterns in gender behaviours, and during the festive period, we can see how people plan to spend their money.
On average, 91% of women are looking to spend money on gifts during Christmas, while around 87% of men are spending. The number of people planning to buy gifts from both genders has seen an almost 10% drop since last year. In comparison to some research, men will buy about 11 gifts for their other half compared to women who buy 15.
Although women might buy more gifts, men will spend more on the items, making their budget slightly more expensive. When looking at the statistics, men will pay 35% more than women this year, following the same pattern from the consecutive two years.
Most of the budget comes down to the type of presents each gender buys, with 73% of women wanting to cut costs compared to 65% of men. Many people are considering buying second-hand or re-gifting items this year.
How else will Brits be spending their money?
Christmas is more than just gift-giving and receiving; it is a time to spend with family and friends. A lot of people’s money this season will be spent on other expenses like travel, events and hospitality. After gift buying, hotel stays will be the second-largest expense, with an average of £197 being spent compared to £87 in 2020. This will cause lower COVID restrictions than the previous year, making people want to venture out more than before. This reason can be the same cause for increased travel (£153) and event (£130) expenses.
What does all this spending mean?
All this consumer spending means a big spike in revenue for business owners. Even though there will be some reductions in areas since some people are sending less, on just Christmas gifts and preparations alone, the UK is set to receive a staggering £6.5 million.
Whilst there will still be an increase in spending, the inflation of certain prices (like fuel) means that customers are taking more care of their spending, so they don’t go over the danger threshold in their bank.
While all these Christmas predictions may look daunting for merchants, don’t forget to take notes to understand the spending habits within your consumers. Understanding their needs and worries will improve your customer service and their experience with your business. We would like to offer our advice and help you find out more ways on how to boost your income this festive season. 8 Easy Ways to Boost Your Income Over This Holiday Season (trustpayments.com)
