Yahoo Finance Brits to cough up an £100 extra on festive treats this Christmas
Cash-conscious Brits are loosening their purse strings in the run-up to Christmas as they prepare to spend an extra £100 on festive food and activities.
A consumer spending report carried out by Barclays found that 56 per cent of respondents are confident in their ability to spend on non-essential items — the highest level since April.
Promotional sales events such as Black Friday and Cyber Monday appeared to get customers in the buying mood, with spending on non-essential items growing 2.7 per cent in November up from the prior month’s reading of 2.0 per cent.
Spending in clothing stores grew 2.8 per cent up from -3 per cent in October and department stores got a five per cent increase from 0.4 per cent, as Brits made the most of promotional sales and updated their winter wardrobes.
But according to a separate reading from the British Retail Consortium (BRC) total retail sales increased 2.7 per cent in November, against a growth of 4.2 per cent in November 2022.
Helen Dickinson, chief of the BRC said: “Black Friday began earlier this year as many retailers tried to give sales a much-needed boost in November. While this had the desired effect initially, the momentum failed to hold throughout the month.”
UK consumer price inflation rose by 4.6 per cent in the 12 months to October, down from 6.7 per cent in September — which is still above the country’s average rate of 2.82 per cent but down marginally from last October’s record of 11 per cent.
In the wake of rising costs, shoppers expect to fork out an average of £105.43 more on Christmas this year than in 2022.
Festive food and drink is expected to be the largest contributor to this increase, rising by an average of £25.87, followed by gifts which are expected to rise by £18.62 and activities by £11.86.
Esme Harwood, director at Barclays, said: “Shoppers got into the festive spirit early this year, flocking to the high street to take advantage of month-long Black Friday sales, and unlocking long-awaited retail growth.
“Consumers were also keen to socialise, but prioritised more economical — and warmer — ways to catch up with friends and family, choosing cosy nights in with takeaways or enjoying drinks at the pub instead of dining out at restaurants.”
She added: “November also marked a turning point for consumer sentiment — confidence in personal finances improved, with Brits starting to feel less concerned about some of 2023’s defining issues, such as inflation, interest rates, and food prices — so there are reasons to be cautiously optimistic as we look ahead to Christmas and the New Year.”
