Further to this, 36% of consumers are “being more careful” with spending. The findings in Retail Week’s annual How They’ll Spend It report, published today in partnership with SheerID and Vypr, show just 8% are increasing spending.  

Over-65s are the least worried about the high cost of living – with 25% of this cohort not that worried or concerned at all about the economic landscape. On the other hand, 39% of 55- to 64-year-olds and the same percentage of 25- to 34-year-olds are “very worried” about the current state of affairs. 

The research, conducted by Vypr, revealed 39% of families with children report being very worried, but that figure drops to 25% in households earning over £65,000, compared to 44% in households in lower income brackets.  

Little surprise when 34% said their household spending, which includes rent, mortgage and bills, has “increased significantly” in the past 12 months, while a further 44% said they have “increased slightly”.  

What does it mean for Christmas?

This report’s research was conducted during the last week of October 2024, and 65% of survey respondents said they had started to plan their spending and budget for the festive season. Nearly half (47%) said they intend to spend the same on Christmas as last year, while 28% said they are likely to spend less – only 17% said they are looking like spending more than 12 months ago.  

When shopping for gifts this Christmas, consumers are prioritising online-only retailers and marketplaces, with 20% saying this is where they will head as a first port of call.

This Black Friday, Amazon was once again the most popular website in the UK, pulling in 14.7 million visits. This was down 5% on 2023 but still double that of its nearest competitor, eBay, which drew 6.5 million visits, according to SimilarWeb data.  

What they’ll spend on this Christmas

Some 16% said supermarkets were the priority, while 14% listed value variety retailers such as The Range and B&M, underlining the pressure on personal finances and drive to seek out discounts. 

Despite the rising popularity of preloved goods, only 6% said they will prioritise re-commerce this Christmas, which suggests the circular economy movement has some way to go before it is a key consideration for gifting. But those who are planning to prioritise it talked up the sustainability and cost benefits, with many keen to make purchases that help stop items going to landfill sites.

Proving the growing awareness of retail and its impact on the environment, one survey respondent said they were prioritising re-commerce because it “means that I am doing my bit to cut down on virgin material use in retail”.

Petcare and electricals retailers look like they have got their work cut out this Christmas, with only 2% and 4% of shoppers, respectively, prioritising these sectors in the peak period. It may be why Currys, for example, went early on its festive-related advertising; it recruited celebrity chef Marco Pierre White to promote a white-goods Christmas via the marketing of its white Ninja Double Stack XL air fryer as a potential game-changer for preparing dinner on the big day. 

Those prioritising online-only retailers this Christmas said these are quicker and “easier” than facing the shops, and they cut out the “hassle” of crowded streets and town centres. Others cited the benefits of being able to get presents delivered rather than carrying them around shopping centres. 

In a stark warning to retailers and highlighting what they are up against as consumers seek ultra-convenience, one shopper said they would prioritise online-only shopping this Christmas “because I can get pretty much everything on Amazon”.