Half of shoppers plan to spend less this Christmas as cost of living crisis bites, says Kantar

The data from Kantar concluded that 37 per cent of consumers are struggling with their finances which means retailers and brands will need to work harder to attract customers this year.

In a statement, Kantar said: “The next few weeks will be especially critical for consumer businesses, with competition on the high street likely to be fierce even right up to the big day.

"While 5 per cent of people said they have already bought all their presents, the number of those leaving their shopping to the last minute has nearly doubled from 4 per cent in 2020 to 7 per cent this year.

“There has been a dramatic increase in the number of people worried about Christmas, with the figure hitting 47 per cent in 2022; a rise of 15 percentage points since 2021.

"With the inflationary backdrop, brands will need to ensure their Christmas advertising campaigns strike the appropriate note with the public.”

“Only 18 per cent of consumers strongly agree that they are looking forward to festive ads this year, down 5 percentage points since 2021. Some people also say they feel these ads set unrealistic expectations for spending.”

One in three of those who are planning to cut back plan to do so by at least £25, according to the survey's findings.

Lynne Deason, head of creative excellence at Kantar, commented: “It’s been another tough year for many people and brands need to be careful to get the right tone this Christmas.

"We’ve seen a significant jump in the number of consumers who are worried about money and the emphasis for many will likely be on getting back to the true meaning of the festive season, focusing on togetherness, kindness and generosity.

“Brands must be sensitive to this emotional context and the reality of people’s financial positions, particularly in their advertising campaigns. She added: “There’s been a clear shift in public sentiment around Christmas ads and brands will need to balance celebration and excess in their content in 2022.

"That doesn’t mean, however, that they should fall into the trap of gloomy, downbeat ‘sadvertising’.

"People still want to be uplifted, in fact even more so when times are tough. Brands who also take active steps to make a genuine difference to those in need this Christmas will be appreciated and remembered. Tesco’s donation to the Trussell Trust and FareShare is a good example.

“Christmas ads continue to play an important part in kicking off the festive season for many people and giving them a boost, but brands must ensure they deliver their messages in a way that doesn’t feel out of reach or out of touch this year.”

The study was conducted online via Kantar Research Express. A sample of 1,249 adults aged 16 and over was interviewed from October 18 to 20. It was weighted to provide a representative sample of the UK’s adult population.

Kantar also recently revealed that shoppers are now paying an average of £643 more on groceries than last year, after inflation hit 13.9 per cent during September.

Earlier this month, Fraser McKevitt, head of retail and consumer insight at Kantar, said: “The cost-of-living crisis is still hitting people hard at the checkouts and this latest data will make tough reading for many.”