Britons are planning to party at home and save on trips out this Christmas as the cost of living crisis continues to put a dampener on celebrations.
A third of 25- to 34-year-olds are planning to host parties in their living rooms this festive season, a 10% increase on last year, as 38% of all Britons say they are planning to go out less in the next few months, according to a nationwide report by the supermarket group Tesco.
The number of people visiting hospitality venues, including pubs and restaurants, is expected to fall by 4.5%, according to a separate report for the discount site VoucherCodes, piling further pain on businesses already suffering from increased costs and lacklustre consumer spending.
Despite the concerns about their budget, more people plan to make a meat dish their Christmas centrepiece – 79% compared with 74% last year. Turkey remains the favourite meat, followed by chicken – which is preferred by 11% of households – and roast beef, according to Tesco.
However, 14% are planning to serve vegetarian dishes and 6% vegan meals – the same proportion as a year ago – suggesting meat-free remains firmly on the table despite the flagging fortunes of meat-alternative brands such as Quorn and Beyond Meat.
Traditional favourites including Christmas pudding and sprouts are also hanging on – although more than two-thirds of households say they will now skip the dessert and almost two-fifths of gen Zs – those born between the mid-1990s and early 2010s – hate the tiny green brassicas.
Overall, Britons are expected to buy fewer and cheaper items this Christmas – especially online – as the rising cost of essentials, including groceries and household bills, eats away at their spare cash.
While total spending will rise by 3.4% to almost £110bn in the final three months of 2023, according to retail analysts at GlobalData that is all down to inflation, which remains high at 9.3%, with the volume of goods sold expected to be down.
More than two-fifths of the population say they feel worse off this Christmas than last year and as a result many will cut back where possible, according to research for VoucherCodes.
Sales of gifts and decorations will be the worst hit by consumer cuts, with gift spend falling 3% and decorations by almost a fifth. However, households are expected to prioritise travel – with spending up 15% on last year – as they recover from several years of pandemic-related restrictions and transport difficulties.
Spending held up better than expected last winter despite hefty inflation – as households turned to savings built up during the coronavirus pandemic to fund their festivities while government support and mild weather offset higher energy bills.
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However, this year there is evidence that British consumers are already cutting back on spending.
Figures from the Office for National Statistics showed retail sales volumes in Great Britain fell by 0.9% in September compared with a month earlier, as mild weather limited sales of colder-weather gear and consumers cut back on non-essential spending.
The figures fuelled growing fears the retail industry has plunged into a recession before the key festive shopping season.
