Christmas shopping has started early says report

A new report compiled by PwC has found that almost two-thirds of people in the region have started their Christmas shopping early.

The firm’s latest seasonal sentiment survey found that 64% of East Midlands consumers have started shopping for gifts as they look to spread the cost in the lead up to the festive period.

This has led to 16% of shoppers increasing their Christmas budgets this year to treat family and friends, while a third said they plan to spend less than previous years.

Sarah Phillips, PwC partner and consumer markets leader for the Midlands, said: “Every year it seems that Christmas starts earlier, and East Midlands shoppers are taking advantage by getting ahead in order to spread the cost over the second half of the year.

“This provides a steady stream of sales for the high street and has led to some shoppers feeling they are able to spend more this Christmas.

“That said, we can see the cost-of-living has led to some consumers tightening their festive budgets as inflation impacts household spending.

“Elsewhere, the report found that 32% of UK adults felt it was important to keep Christmas special, which will be encouraging for hospitality as well as the high street, as consumers will be more inclined to spend on Christmas celebrations with family and friends.

“With the East Midlands being home to various shopping and dining destinations, we should hopefully see a boost to the high street this festive season.”

According to PwC, consumer sentiment is holding firm – although the widest gap on record now exists between the most and least affluent socioeconomic groups since the survey began.

Lisa Hooker, leader of industry for consumer markets at PwC, said: “Looking forward to the key Christmas trading period and with shoppers wanting to protect spending on family and special occasions, they are starting preparations early and being cautious, with over a third of consumers planning to shop before the peak festive trading times, and many also saying that they will spend less.

“However, last year shoppers did spend more than expected, so with falling headline inflation, there may yet be a last-minute spending uptick. Retailers will certainly be on tenterhooks.”