// Half of shoppers plan to spend less this Christmas, according to Kantar data
// One in three of those shoppers will cut their gift budget by £25 per person
Half of UK shoppers plan to spend less on Christmas this year as the cost-of-living crisis bites, according to new data from Kantar.
The research found that one in three of those planning to spend less would cut gift budgets for family and close friends by more than £25 per person.
More than a third (37%) of those surveyed said they were struggling with their financial situations, which means that retailers will need to work harder to attract customers this Christmas.
Almost half (47%) of consumers said they were worried about Christmas, which was up a dramatic 15 percentage points since last year.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Retailers will need to ensure their Christmas advertising campaigns strike the right note given the level of concern in the market.
Kantar found that only 18% of consumers strongly agree that they are looking forward to festive ads this year, down 5 percentage points since 2021. Some people also say they feel these ads set unrealistic expectations for spending.
Kantar head of creative excellence Lynne Deason said: “It’s been another tough year for many people and brands need to be careful to get the right tone this Christmas.
“We’ve seen a significant jump in the number of consumers who are worried about money and the emphasis for many will likely be on getting back to the true meaning of the festive season, focusing on togetherness, kindness and generosity.
“Brands must be sensitive to this emotional context and the reality of people’s financial positions, particularly in their advertising campaigns. There’s been a clear shift in public sentiment around Christmas ads and brands will need to balance celebration and excess in their content in 2022.”
However, Deason said this doesn’t mean that brands should fall into the trap of opting for ‘sadvertising’ – gloomy, downbeat ads.
“People still want to be uplifted, in fact even more so when times are tough, she said. “Brands who also take active steps to make a genuine difference to those in need this Christmas will be appreciated and remembered. Tesco’s donation to the Trussell Trust and FareShare is a good example.
“Christmas ads continue to play an important part in kicking off the festive season for many people and giving them a boost, but brands must ensure they deliver their messages in a way that doesn’t feel out of reach or out of touch this year.”
Despite some retailers reporting that consumers had started their Christmas shopping early – Superdrug today revealed that sales of its Christmas gifts were up 219% year on year – Kantar found that the number of shoppers planning to leave their gift buying to the last-minute had nearly doubled from 4% in 2020 to 7% this year.
Click here to sign up to Retail Gazette‘s free daily email newsletter
