Welcome to Hudson Sandler’s Q423 Consumer Snapshot, our quarterly research of more than 1,000 nationally representative people to test the temperature of UK consumer sentiment.
During 2023’s ‘Golden Quarter’ for retailers and brands, we asked consumers about their intentions for spending this Christmas, what macro issues top their current concerns, and their attitudes towards sustainable consumerism against the backdrop of the cost-of-living crisis.
Christmas spending is under pressure
More than half of consumers said they plan to spend less than last year in the lead-up to Christmas, with nearly 1 in 4 planning to spend significantly less than they did last year. Underpinning this, 39% of consumers said they plan to spend less on presents for friends and family this year than last year, while 39% plan to spend less on eating out and takeaways on in the leadup to Christmas.
The squeezed middle
Our survey indicates that the 25–34-year-old cohort of consumers is likely to be the most active purchasers in the lead-up to Christmas. They are the least likely to cut back on spending, and most likely to eat out, socialise with friends, go to entertainment venues and travel. They are also the most likely to cancel subscriptions such as Netflix, in favour of in-person experiences. At the same time, those 65+ told us they were most likely to retain the same level of spending on Christmas presents as last year and the least likely to cut back significantly. They were also the age group least worried by rising interest rates and energy prices. This contrasts with millennials and Gen-X consumers, who are most concerned about rising interest rates and the most likely to cut back significantly on their Christmas spending this year.
Sustainability is not a luxury for Gen-Z
Despite the cost-of-living pressures facing younger consumers, more than half of 18–24-yearolds continue to prioritise purchases that support their own environmentally friendly lifestyles. This contrasts with the 45–55-yearolds, who are most worried about cost of living pressures, with 27% of this cohort saying that the sustainability of the products they purchase is less important to them than it used to be.
1. When considering your Christmas spending this year, do you plan to reduce your spend in any of the following areas?
39% plan to spend less on presents for friends and family this year, a figure that rises to 44% of women.
39% plan to spend less on eating out and takeaways in the lead up to Christmas.
The Grey £ holds up: Those 65+ are most likely to retain the same level of spending on Christmas presents and the least likely to cut back on their overall spending.
25 - 34 year olds will be the most active purchasers in the lead up to Christmas. They are the least likely to cut back on spending, and most likely to eat out, socialise/drink out with friends, go to entertainment venues and travel.
2. When it comes to Christmas spending this year, do you plan to...
£250 - £400 is the most likely amount to be spent on Christmas presents by consumers.
31% of 45-54 year olds plan to spend significantly less this Christmas than last year.
3. Approximately how much do you anticipate spending in total on Christmas presents this year?
21% of those surveyed in the East of England are likely to spend £600 or more on Christmas presents – making it the highest spending region in the UK.
4. Which issue concerns you the most right now?
30.3% of consumers are most concerned by rising energy prices, which remains top of the list, but down nearly 18ppts on the prior year.
-6ppts the YoY change in consumers most worried about the war in Ukraine, at 7.9%. However, this increases to 14.3% of 65+ year olds and reduces to just 3.3% of 25-43 year olds.
0% of 18-24 year olds are most worried about new Covid variants, rising to 11.2% of 65+ year olds.
25% rising interest rates are of greatest concern to 1 in 4 25- 34 year olds, vs only 3.3% of 65+ year olds.
9.2% of 45-54 year olds are most worried about job security, vs an overall average of 5.2%.
28% of 18-24 year olds are most concerned about climate change – the highest concern amongst any cohort.
5. In the context of the cost-of-living crisis, how important is it that the products you buy are environmentally friendly / sustainable?
1 in 5 say that it’s never been important to them that the products they buy are sustainable, which rises to nearly 1 in 4 of 65+ year olds.
21% say sustainability of products is less important to them than it used to be, rising to 27% of 45- 54 year olds.
54% of 18-24 year olds remain concerned about purchases supporting their own environmentally friendly lifestyle.
6. How important is it for brands and retailers to support customers through the cost of living crisis?
