Three-quarters of shoppers are planning to spend more or the same on their Christmas meal this festive period compared to last year, according to the latest IGD ShopperTrack.

Over a third (36%) will spend less on Christmas presents, and 38% will not spend as much going out to restaurants, pubs and bars over the same period.

Joanne Denney-Finch, chief executive, IGD, said: “In this era of austerity we’re all watching the pennies.

“While shoppers are planning to spend less on presents and going out, their Christmas meal is regarded as the priority over the festive season and they don’t want the belt-tightening to spoil it.

“To respond to shoppers’ general thriftiness, food and grocery retailers and manufacturers need to demonstrate even more value to encourage shoppers to loosen the purse strings.

“They could also target their marketing at a younger customer base, as 18-24 year olds are the most likely to spend more this Christmas.”