UK consumers are set to spend £24.6bn on presents, food and festivities over the Christmas period this year, according to PwC’s latest festive predictions survey.
This is up 3.5% on the £23.7bn spent in 2024, with the average spend per adult set to rise from £449 to £461.
This Christmas, 15% of shoppers said they will up their spending compared with last year, and 14% said they will spend less.
Spend also differs by age group, as 32% of 18-to-24-year-olds said they will spend more this year, with an estimated average spend of £541 per head.
Shoppers aged 25-34 are forecast to spend £476 per head, with 21% saying they will increase Christmas spend this year.
Of those aged 35-44, 18% said they will keep a closer eye on money, alongside 14% of those aged 45-54.
The cost of living was identified as the main reason for wanting to spend less – 36% said they have less money to spend, 34% said personal finances have been negatively affected this year, and 24% said they are less confident about finances.
The categories expected to win big over Christmas are food and drink, as 27% of consumers said they plan to spend more on this than last year.
A further 18% said they will spend more on health and beauty products, and 17% plan to spend more on fashion.
In terms of when to do Christmas shopping, 46% said they have finished before the start of December, while 47% said they will do their shopping in early-to-mid December. Just 8% leave shopping until the week before Christmas.
The majority of consumers (55%) plan to shop online for home delivery, and 9% said they will shop through click and collect, leaving 36% to shop in physical stores. This is the highest proportion bought online since the end of the pandemic.
PwC UK head of retail Jacqueline Windsor said: “Retailers, and particularly supermarkets, will be encouraged to see consumer net spending intentions for food and drink in positive territory.
“Post-Budget, we should see clarity on personal finances easing some of the caution we have seen this autumn, which has contributed to a slow start to the critical golden quarter for some retailers.
“For retailers, the challenge is to balance competing consumer priorities. Those who succeed will need to offer a mix of practical and joyful products at different price points to meet the needs of shoppers managing their wallets and celebrating special occasions.
“With almost two-thirds of festive shopping expected to take place online this year, retailers will also need to bridge digital and offline channels across the customer journey.
“The good news is that despite the slow start to the festive shopping period, we know that the majority of Christmas shopping is done in December, and that consumers always spend more than they expect on festive presents and celebrations. So, it’s still all to play for the retail and hospitality sectors as we come into the final weeks before Christmas.”
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