7 in 10 consumers plan to spend as much or more than last Christmas

London, UK - 15 November 2022

Despite the ongoing cost-of-living crisis and impending impact of the recession, 7 in 10 UK consumers (70%) plan to spend as much or more than they did last year this Christmas, according to new research from Intuit Quickbooks.

The average UK consumer shopping budget this Christmas period is £671 – 109% of the median weekly income. It comes as little surprise, then, that 77% have made necessary cutbacks already to maintain their Christmas shopping budget.

Moreover, a third (35%) expect to use debt for their spending – and the vast majority (88%) admit that they will cut their holiday spending if the economy gets worse. 7 in 10 (73%) are considering buying fewer gifts due to inflation, while 8 in 10 (79%) say online sales will be more important this Christmas than last year. 

Savvy shopping small

Unsurprisingly, inflation is affecting consumer buying habits. 78% of UK consumers say that inflation is pushing them to shop online more, where they can better assess deals and offers, and monitor restocks – especially important as more than 7 in 10 (73%) are worried about possible product shortages.

This will see the average consumer do more than half (62%) of their Christmas shopping online – with 38% saying they will spend more online this year than in 2021.

However, in an encouraging sign for the UK’s vast small business sector, consumers also want to support the local economy by shopping small. UK shoppers plan to spend more than a third (37%) of their total budget at small businesses this year – an average of £248. If this amount was spent shopping small by each UK household[1], we’d see an injection of £6.9 billion into our small business sector this Christmas. 

Half of consumers (47%) believe they get the best service shopping small, so we can expect consumers to spend even more money at small businesses this Christmas if they’re able to benefit from some of the perks usually reserved for shopping online. 

For example, 42% would spend more money in small businesses when they offer special holiday promotions and discounts. Also, 38% are likely to spend more money online if there is a quick and easy check-out process. 

Nick Williams, UK Product Director at Intuit QuickBooks, said: “As inflation continues to rise, it comes as no great surprise that money will be tight for many consumers this Christmas – or that this will have a knock-on effect on the nation’s small businesses. What’s encouraging is that so many UK shoppers are still keen to shop small and support local businesses, which will keep the country’s vital small business sector strong this Christmas. 

“To capitalise on this opportunity and offer the best shopping experience to potential customers, small businesses should look for a digital helping hand where they can – be that an online shopping platform to streamline purchases and shipping, or taking advantage of online advertising of special Christmas deals and promotions. Whatever small things small businesses can do to win more customers over this Christmas, the better for their bottom lines – and for the UK economy.”

Sources

[1] "In 2019, the number of households in the UK was 27.8 million" https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/articles/overviewoftheukpopulation/january2021

Methodology 

Intuit QuickBooks commissioned online surveys, completed in September 2022, of 12,700 respondents in the US, Canada, and UK, comprising 9,700 consumers (adults aged 18+) and 3,000 small businesses (up to 100 employees). In the US, there were 7,000 respondents: 5,500 adults and 1,500 small businesses. In Canada, there were 2,400 respondents: 1,700 adults and 700 small businesses. In the UK, there were 3,300 respondents: 2,500 adults and 800 small businesses. 

Census data weightings were used to ensure the responses are as representative as possible. The small business sample excludes businesses that do not consider the holiday season to be important to their overall annual performance. The majority of the small businesses are product-based (76% in the US, 60% in Canada, 79% in the UK). Their average annual revenues are $732,00 in the US, C$912,00 in Canada, and £709,637 in the UK. The average number of employees per business is 26 in the US, 27 in Canada, and 27 in the UK. Percentages have been rounded to the nearest decimal place, so values shown in the charts and graphics may not add up to 100%. Responses were collected in online surveys using Pollfish audience pools and partner networks with double opt-ins, random device engagement sampling, and post-stratification to ensure accurate targeting and results. Respondents received remuneration.

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