A study has shown that a third of adults will spend less on Christmas compared to last year – equating to a £562 million shrink in Christmas gifts spending.
The research, conducted by Novuna Personal Finance, shows that average Christmas gift budgets have dropped by over 10 per cent this year, from £101 in 2022, to £90 per family member with shoppers in Glasgow (41 per cent), Newcastle (38 per cent) and Bristol (37 per cent) making the most pronounced cutbacks on presents.
Theresa Lindsay, Group Marketing Director at Novuna Personal Finance, commented: “Our research shows a clear shift in spending habits, with people budgeting less on Christmas gifts than last year. Heading into the festive season, we can see consumers readily making cutbacks in their plans for gifting.
“At a time when finances are being stretched, it’s good to see that many people have identified ways to save money this year, even though for some it means delaying Christmas and snapping up early Boxing Day bargains on the big day itself.”
A quarter of those surveyed say they’ll borrow money to help cover the cost of Christmas this year, especially those in Glasgow (31 per cent), Sheffield, (29 per cent) and London (26 per cent).
The study finds that nearly one in three younger adults (16–34-year-olds) will shun Christmas Day festivities to pursue early Boxing Day bargains online, whilst people are also considering how to avoid unwanted gifts and trim their shopping lists.
Black Friday hope
The finance company explained that bargains and discounts play a key role in the run up to Christmas, with one in three (30 per cent) saying they plan to shop on Black Friday this year and two in five (38 per cent) doing so to save money.
The data revealed that 16–24-year-olds are twice as likely to grab a bargain (55 per cent) as 45–54-year-olds (24 per cent). And this younger group say they actively plan their financial outgoings and budget specifically around Black Friday.
The research shows that Black Friday is much more popular among those in their mid-thirties and younger. Half of adults under 34 (50 per cent) say they plan on shopping during the event compared to just 15 per cent of those aged 55+.
