Christmas spending set to hit three-year high but fashion will struggle – survey

Uplifting news on UK Christmas-related family spending. People are set to splash out this year with expected outlay hitting a three-year high as the cost-of-living pressure eases, according to RSM UK’s Consumer Outlook.

However, one of the areas due for cutbacks in spending is… adult fashion.

Underpinned by credit card/buy-now-pay-later arrangements for a third of shoppers, families expect to spend an average of £760 on Christmas this year. That’s up £158, or 26%, on £602 spend last year, and £694 in 2022. 

Last year, consumers spent on average around a third more than expected, “so 2024 average spend could break the £1,000 mark if the same overspend happens again this year”, the report noted.   

To control budgets, 50% of all families plan on bringing forward their Christmas spending to spread the cost of purchases and take advantage of discounts such as Black Friday and Cyber Monday.

The survey of 2,000 18+ UK consumers between 25 September and 2 October showed the top three categories that families plan on spending more on include Christmas presents (33%), Christmas dinner (33%) and food and drink at home (32%).

Whereas the biggest cutbacks will be homewares (42%), eating and drinking out (40%) and adult fashion (37%).

Jacqui Baker, partner and head of retail at RSM UK, said: “Consumer confidence improved for the first time in three months in November, but it remains fragile and any further dips in confidence could derail expected spending.

“Many retailers will be hoping that Black Friday deals can kickstart sales throughout the Golden Quarter to ensure they are in the best possible financial position going into 2025 to help offset the looming uplift in costs post-Budget.”