Retailers beware: it’s going to be another tricky Christmas trading period. Price will continue to be a significant factor in spending decisions this festive season, with 62% of Britons “maintaining or reducing their budget compared to last year”, according to new Accenture research.

With cost of living constraints affecting gift-buying again this Christmas, shoppers are tightening their purse strings, planning to spend on average 11% less than last year. 

To manage festive spending, 41% are setting strict budgets, 36% are searching for promotions, and 45% plan to delay their shopping until later in the season.

As shoppers seek more economical ways to gift, the research shows that 20% of UK adults plan to buy presents second-hand from resale platforms, such as Vinted or Depop, or from charity shops. This trend is even more pronounced among Gen Z, with 25% incorporating thrifting into their festive shopping plans.

Meanwhile, with UK festive shoppers “overwhelmed” by the amount of information they need to sift through when buying a gift (76%) and 77% overwhelmed by the number of options, weary shoppers are turning to gift cards to solve their ‘buyers’ block’ – with over half of Britons receiving one last year.

While gift cards are chosen for their convenience (71% of consumers cite ease as the main reason for buying them), 39% of receivers felt disappointed that the giver did not spend enough time to plan a personalised gift. 

To compound this, the research found that recipients aren’t making the most of their gift cards, with fewer than half using the total balance, and a notable 27% forgetting about it entirely. As a result, an average of £109 per person was left unspent on gift cards in the UK last year. 

Stuart Chalmers, retail lead for Accenture in the UK, said: “Not only will [retailers] need to navigate consumers who continue to be cautious with their spending, but they must account for a developing shift in shopping behaviour, especially amongst Gen Z and Gen Alpha. 

“These younger generations are embracing ‘lifestyle commerce’, which offers seamless shopping experiences and dynamic, consumer-driven marketplaces often found on social media platforms.”

Chalmers said to meet sales targets, “retailers must understand that shoppers are increasingly moving towards digital channels, and resale platforms, not solely for financial reasons, but because they prefer the experience. More than ever, it’s crucial for retailers to understand the underlying motivations behind these behavioural shifts and adjust their strategies to accommodate the changing landscape.”