Shoppers are predicted to spend £4.4 billion less this Christmas as the cost-of-living crisis looms large.
Retail Gazette rounds up the ways that retailers including Sainsbury’s, John Lewis, Tesco, M&S and Boots are helping cash-strapped consumers deliver Christmas on a budget.
Cheap Christmas dinners
Sainsbury’s today revealed it is selling “an inflation-busting” Christmas roast dinner at less than £4 a head so that customers on a budget can still enjoy a festive feast.
The Christmas roast dinner is cheaper than last year’s, according to the retailer, as it invests a further £50 million in its value plan.
Poundland is offering its first ever Christmas dinner as customers continue to seek value during the festive period.
The main turkey course comes in at £5.00 per head for a family of five, while a full four-course meal is priced at £6.85.
Early Sales
Many shoppers started their Christmas present buying early this year in order to spread the cost and retailers are doing their bit to give them early deals.
Amazon kicked off its two-day Prime Early Access Sale in early October, designed to help customers “spread out their seasonal spending”.
The Sale, which happened six weeks ahead of its Black Friday event, ran across 15 countries, including the UK, US and China and included fashion, electronics, toys and everyday essentials.
Amazon is not alone. Both Tesco and Morrisons launched mega toy Sales, offering up to 50% off must-have goods, as early as October.
Tesco boss Ken Murphy said that the early Sales would help “smooth the spending patterns for our customers so they can afford to give their families a great Christmas, and manage that spend over a longer period”.
Price freezes
While some retailers are running Sales, others are trying to give shoppers the security of knowing that, despite rampant inflation, prices are going to remain the same in the run up to the big day.
M&S, which was one of the first grocers to unveil its full Christmas food range, vowed that there will be no change to prices between ordering and pick up.
To help shoppers spread the cost, they can make an order with just a £40 deposit and pay the remaining balance when they pick up in store.
Free fulfilment
Many shoppers will be scrutinising every penny when it comes to buying the products they want this Christmas and fulfilment costs are set to come under the microscope.
Expect shoppers to gravitate towards those offering free or cheap delivery options.
Department store John Lewis removed its £2 click-and-collect charge for orders under £30 until 19 October.
The move was designed for the many shoppers that started their Christmas present buying early this year.
The retailer has also changed its returns policy, allowing customers to buy now and still exchange or return unwanted gifts until 28 January.
John Lewis customer director Claire Pointon said: “We want to be here for all life’s moments and, despite all the cost of living pressures, we’ve seen that our customers are still determined to celebrate Christmas and are buying earlier to help spread out the cost.”
“We want to give our customers the piece of mind that items purchased in the run up to Christmas can still be exchanged or returned after the big day.”
John Lewis was not the only retailer focusing on scrapping fulfilment fees. Toys R Us is offering free deliveries on all orders over £20 ahead and next-day delivery on all orders placed before 6pm with its big UK website relaunch.
More low-price gift options
Boots has reassured its customers that this Christmas will be its “most affordable ever” after finding out that two thirds of shoppers are looking to cut costs on Christmas presents this year.
More than 50% of its 700-product-strong gifting range is priced at £10 or under, and more than 70% is priced at £15 or under.
M&S Food has also unveiled its biggest ever range of £5 and under gifts this Christmas.
Expect other retailers to adopt this approach to give easy gift options for those on a tight budget.
