Britons are saving, not spending, for Christmas 2021
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Nov 19, 2021
Britons are saving, not spending, for Christmas 2021

The Institute for Fiscal Studies finds that Britons are unlikely to spend big over Christmas 2021, despite accumulating high levels of savings. With this shopper mindset, companies would do well to cater to more mindful experiences that express a more modest image of the holiday season.

The study asked Britons how they would spend an extra £500 if it was given to them. On average, people reported that they’d only spend £55 between March to June 2021, notwithstanding how Britons have amassed a total of £150 billion worth of national savings due to the lack of spending during the pandemic. Breaking down the survey even further, richer households were found to be saving for a better economic outlook and poorer households were looking to pay off mounting debts. Fuel shortages, supply chain uncertainty, and Brexit are all fueling a spending hesitancy among high-income households, whereas the budgets of low-income households are being stretched by increasing inflation and shouldering the costs of spending more on food, bills, and homeschooling because of multiple lockdowns.