Lower Christmas spending could leave more savings

Wednesday, November 23, 2005

Britons will spend less of their savings and hard-earned money on Christmas this year according to the latest research from accountancy firm Deloitte.

The consumer festive spending information gathered by the firm shows that the reduction in spending this year reverses an 11-year trend that saw year-on-year Christmas spending rise.

A decrease in the amount of savings spent and spending through credit card transactions will leave Christmas £400 million cheaper.

"In a Christmas market where pundits have predicted 'retail armageddon', the savvy shopper may well delay shopping in the hope that retailers will cut prices to stimulate demand," said Sharon Fraser, partner in the consumer business practice at Deloitte.

Ms Fraser also said that an investment in gift vouchers could attract a lot of consumers as they leave the recipient with the option of taking advantage of any high street price-cuts.

Yorkshire is the region that has tightened the belt most on credit card use and spending for Christmas, with an average gift spend reduction of £96.

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