It has been reported in the Guardian that Britain’s retailers are bracing themselves for a tough Christmas trading period as hard-pressed consumers react to a worsening cost of living crisis by cutting back on spending.
With the most profitable period of the year for shops and online outlets approaching, two surveys out on Tuesday underlined the extent of the squeeze on household budgets caused by the UK’s double-digit inflation rate.
The monthly snapshot of spending by Barclaycard, which accounts for half of debit and credit card transactions, found that 50% of consumers were planning to tighten their belts this Christmas, cutting back on presents, food and drink, and socialising.
Esme Harwood, a director at Barclaycard, said: “Rising petrol and supermarket costs continue to bite but Brits are spending less on energy bills as government support kicks in and people find ways to economise at home. Consumers continue to swap big nights out for cosy evenings in as they reduce their discretionary spending, while health and beauty, and home improvements enjoy a little boost.”
Two in three consumers (66%) were finding ways to save energy at home to reduce the cost of their gas and electricity bills, Barclaycard found. Many of those were wearing more layers at home (63%), while 56% were avoiding using central heating unless absolutely necessary.
One in five (20%) had bought an electric blanket or hot-water bottle, and almost a quarter (23%) were buying or already using an air fryer to help reduce the cost of cooking.
In October there were the first payments to consumers under the government’s energy bills support scheme but Harwood said these were unlikely to change the mood.
