Shoppers turn to Christmas deals as household budgets come under pressure

More than eight in ten (82 percent) UK shoppers expect to see supermarkets to offer more food and drink deals this Christmas, as over half expect to cut their festive spending, according to research from retail and shopper marketing agency Savvy.

Some 55 percent expect to cut back on gifts, while 53 percent anticipate reducing spending on food and drinks.

Shoppers are also looking to make their rewards work harder. More than two-thirds (68 percent) plan to spend retailer loyalty card points this Christmas.

Alastair Lockhart, Insight Director at Savvy, commented: “Rising energy prices are biting into shopper’s disposable incomes as we head into the crucial Christmas trading period. Consumers are determined to make the most of the festive season, but they’re becoming increasingly strategic about how and when they spend. From hunting out the best deals and cashing in loyalty points to carefully timing purchases, shoppers are pulling every lever they can to make their Christmas budgets stretch further.

AI is also becoming part of Christmas planning, particularly among shoppers aged under 45. For retailers and brands, this adds another dimension in how they help shoppers find gifts, explore ideas and make purchasing decisions.”

Earlier shopping and waiting for deals

Spreading the cost emerges as a priority, with nearly two-thirds (64 percent) of shoppers expecting to start buying Christmas presents earlier this year for that reason.

Promotions are also shaping shopping plans. Some 51 percent expect to do more of their Christmas shopping on Black Friday than last year, while 41 percent say they tend to delay buying presents until the final weeks because they expect sales to begin before Christmas.

AI and social media shape Christmas planning

More than a third of shoppers (36 percent) expect to use AI to help plan their Christmas shopping and celebrations, rising to 55 percent among those aged 18–44.

Social media is another important source of festive inspiration. 46 percent say it is the best place to get ideas for Christmas, increasing to 68 percent among shoppers aged 18–44.

The findings clearly highlight the growing importance of digital discovery among younger shoppers.

Image courtesy of Unsplash. Photo credit: Michele Purin.