We spent less on Eid celebrations, three in 10 Brits will do the same in festive period
Business
Trend is a product of rising cost of living
LONDON/LAHORE (Reuters/Web Desk) – Almost three in 10 UK consumers plan to spend less in the festive period this year than last year, reflecting the impact of the ongoing cost-of-living crisis, according to survey data published by Deloitte on Tuesday, says Reuters in a report.
However, it said its data did show a seven percentage-point rise in the number of UK consumers – from 19 per cent in 2022 to 26pc in 2023 - who intend to spend more in the last three months of 2023, partly as a result of prioritising any savings they’ve made for their Christmas expenditure.
It is a stark reminder who things have gotten uglier for the low-income groups around the world, including Pakistan.
Earlier this year, many were not able to celebrate Eidul Azha in a traditional manner as they were not able to sacrifice animals due to the high prices amid the prevailing the rising cost of living amid an alarming inflation and stagnant, or even shrinking incomes.
Read more: Eidul Azha: Inflation hits people, many return empty handed from cattle markets
But the things are actually even worse for an overwhelming majority who were unable to buy new clothes or shoes for their family members – a trend being witnessed since 2019, which is more visible now with each passing day.
According to Reuters, Deloitte said many UK consumers are looking to spread their spending across the quarter, with 32pc saying they will buy most of their gifts in November, making the most of Black Friday and Cyber Monday promotions.
It said 50pc of respondents this year also said they plan to buy their presents in-store, up from 47pc in last year's survey.
"The Black Friday and Cyber Monday weekend promotions are critical for retailers, and we expect overall spending to increase again this year as consumers try to make the most of the available sales on offer," Oliver Vernon-Harcourt, head of retail at Deloitte, said.
Deloitte's findings on the number of UK consumers planning to spend less this Christmas are similar to an earlier survey from PwC.
So far this year, despite high inflation and other pressures on the cost of living, UK consumer demand has generally held up.
Industry data published earlier this month did show consumer spending lost pace in September, with warm weather hitting sales of autumnal clothing, knitwear and coats.
However, Tesco, Britain's biggest retailer, has said it is upbeat about Christmas prospects.
Also, in anticipation of robust trading, retailers including Sainsbury's and Marks & Spencer plan to hire more temporary workers for the festive season than last year.
