PwC’s latest ‘Festive Predictions’ research suggests scaled back Christmas spending for 2023. The annual research deep dives into how consumers will behave this season - from spending on gifts to their festive feast.
In Northern Ireland (NI), people are intending to spend less and earlier this year to combat cost of living pressures.
The PwC research shows that one in six (16%) in NI plan to spend less than last year on Christmas presents and celebrations, with only 6% saying they plan to spend more than last year. More than a fifth (22%) of people in NI are planning to do most of their Christmas present shopping earlier than in previous years - with 5% planning to shop in the week before Christmas, 41% planning to shop in early to mid-December and 55% shopping before or around Black Friday.
PwC estimates that overall spending on presents and festivities will fall from £23bn to £20bn - down by 13% from 2022. The £20bn figure amounts to roughly £400 per UK consumer - a drop of £40 per person spending from 2022. In addition, more people say they do not intend to spend anything at all this year.
Financial pressures account for the top three reasons amongst those expecting to spend less, with 48% saying they have less money to spend, 43% saying their personal finances have been hit by the cost of living, and 30% saying they are less confident of their personal finances in the coming year.
Aine O’Hare, Tax partner at PwC Northern Ireland, comments:
“While consumers say they expect to spend less this festive season, there is a good chance that people will spend more than they think as last year people on average ended up spending around 15% more (£3bn) than anticipated. So December trading will be critical for NI retailers.
"Last minute shoppers in the week before Christmas mean that the tills will be ringing right up to Christmas Eve, particularly as our research shows men are twice as likely to leave their shopping until that week.”
Jason Calvert, director and economist at PwC Northern Ireland, comments:
“Inflation may have eased, but people here are still feeling the pressure of rising costs, so it makes sense that many are planning their festive spending carefully. However, the combined impact of lower inflation and higher real wages could provide a boost for local retailers as consumers who plan to shop later in December might have more disposable income to play with than originally expected.
“In terms of what people are spending their money on, we are seeing people prioritising spending on their Christmas dinner and on food and drink more broadly. This is especially true for NI consumers as 70% of people intend to spend Christmas at home with family, so will need to stock up on festive treats.”
Read the full Festive Predictions 2023 here: