Not such a happy Christmas for retailers

Inflation, high interest rates and uncertainty about income have led many Spaniards to cut expenses during the year, which experts believe will extend to Christmas, and the majority of consumers will reduce purchases during these holidays. Despite this, the average expenditure in this Christmas campaign will exceed 500 euro, a budget somewhat lower than in previous years. Price will be a deciding factor in most purchases customers make in businesses.

Accenture’s Annual Christmas Shopping Survey of more than 5,533 consumers globally – 502 of them in Spain – revealed that, when thinking about their finances ahead of the Christmas holidays, six out of ten consumers around the world already have cut – or plan to cut – their gifts to family and friends due to budget constraints, a percentage that stands at 69% in the case of less close family and friends.

At the same time, just over half (52%) of consumers have already agreed not to exchange gifts with other adults. Spain’s figures are aligned with these global conclusions, with consumers planning to cut their spending on gifts rising to 71%.

As explained by Jill Standish, global head of the Retail area at Accenture, “the current economic situation is affecting consumer confidence, which is giving rise to the emergence of much more thoughtful buyers, who could be described as ‘creative pragmatists’, who “while they are aware of the need to cut costs in some areas, they also find innovative ways to make their holiday money go further, for example by purchasing materials to make homemade gifts.”

Therefore, the company’s head said, businesses “must be willing to rethink past strategies and focus on obtaining more specific, data-based knowledge of each individual consumer, and then use that information to help reduce complexity” of the shopping experience, build trust and improve brand loyalty.

According to the Accenture survey, Spanish consumers plan to spend €515 this Christmas, compared to the $573 that, for example, the average American population plans to spend. In our country, those who plan to spend the most are millennials between 32 and 39 years old, who expect to spend €614, followed by those over 70 years old, who expect to spend €544.

Furthermore, the survey also shows that, in Spain, price (76%) and value for money (71%) top the list of most important deciding factors when deciding how they will shop and what they will spend money on this season. Quality continues to be key for almost half of Spaniards (48%), data that follows the global trend of the survey.

According to Accenture, many consumers around the world are exploring creative and practical ways to stretch their budget. For example, some consumers indicate that they are willing to give up convenience: more than half in Spain and globally (53%) opt for in-store pickup over home delivery if it saves money.

Additionally, more than a third (39%) of consumers worldwide intend to consciously purchase items they can enjoy year-round, such as board games. This figure increases to 47% among young people between 25 and 31 years old and 45% among the population between 32 and 39 years old, in line with data from Spain.

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