UK households are set to be £3bn worse off this Christmas compared with last year as the cost-of-living crisis continues to hang over households.
The research, conducted by Retail Economics and Auctane, showed that to cope with the high inflation, savvy shoppers will start Christmas shopping earlier, using online marketplaces to stretch their budgets and cut back their overall spending.
40% of UK consumers surveyed plan to start their Christmas shopping before October while 15% of those expecting to shop earlier said they already started shopping in August.
UK consumers are set to spend £17.9bn on online marketplaces this Black Friday and Christmas as they search for the most competitive prices.
Across the eight markets surveyed (UK, US, Germany, France, Spain, Italy, Canada and Australia), the Peak Season Report 2023 predicts that online marketplaces will account for almost £202bn worth of sales over the peak season.
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Meanwhile, 79% of UK consumers surveyed plan to cut back on non-food spending related to Black Friday and Christmas – up 9% on last year.
Specifically, 34% of UK consumers cited inflation and 22% highlighted a lack of savings as their biggest concerns heading into peak season this year.
Retail Economics chief executive Richard Lim said: “The squeeze on incomes has become a war of attrition for many households who have dwindled down their savings as the cost of living crisis drags on.
“Savvy consumers are using all means necessary to manage their budgets by shifting more of their spending to marketplaces to search for bargains, searching for pre-loved products and starting their festive shopping earlier to spread the cost.“Retailers will have to work harder than ever this year to keep prices competitive while catering for more demanding customers who want to shop on and off-line in a manner that suits their needs.”
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