Brit are expected to spend over £24bn on food and presents over Christmas despite a slow start to the festive trading period, a new survey from PwC predicts.
This would be a 3.5% increase on last year with average spending per adult rising from £449 to £461.
Food and drink will be the top spending priority again with 27% of consumers planning to spend more compared to last year, said PwC. This is driven by inflation, more family gatherings, and opting to trade up to more luxurious products.
Around 18% will spend more on health and beauty products, overtaking adult and children’s clothing, and electricals and technology as a priority category.
The highest proportion of consumers since the pandemic (67%) have said they will be hosting or visiting extended family, while the fewest (21%) will be staying at home with immediate family.
“Retailers, and particularly supermarkets, will be encouraged to see consumer net spending intentions for food and drink in positive territory,” said Jacqueline Windsor, head of retail at PwC UK.
“Post-budget, we should see clarity on personal finances easing some of the caution we have seen this autumn, which has contributed to a slow start to the critical Golden Quarter for some retailers.”
It remains a more pessimistic outlook for retailers than 2024, however, with 15% of Brits saying they will increase their spending compared to 20% last year.
Brits kept close control on their wallets in November leading to disappointing Black Friday sales, according to a report out Tuesday.
Barclays said spending on its credit and debit cards fell by 1.1% in November, the biggest drop since February 2021.
While PwC’s survey was taken three weeks before the budget, only 15% said concerns over Rachel Reeves’ announcements as a reason to spend less.
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