- Cost of living crisis forces shoppers to make tough choices this Christmas
- More than a third plan to cut festive spending compared to last year
- Spending on children’s presents and Christmas lunch prioritised
- Average household disposable income falls to a four-year low
Children across the country can breathe a sigh of relief this Christmas, as families plan to prioritise spending on their presents, while cutting back in other areas, according to new research from Asda.
The supermarket’s latest Mindset survey found that 92% of shoppers plan to spend the same or more on their children this year despite having smaller budgets due to the cost of living crisis. Families are also prioritising the traditional Christmas Day lunch, with 90% saying they intended to maintain or increase spending.
However, families are planning to make cuts elsewhere to make their festive budgets stretch further with over half (54%) planning to spend less on Christmas decorations. Other saving opportunities include spending less on presents for extended family members and friends compared to previous years.
The drive to prioritise Christmas spending reflects the difficult financial position facing many families. The latest Asda Income Tracker, which monitors household disposable income, shows the average UK household was £142 worse off compared to last October. The fall in disposable income is primarily due to a steep rise in energy costs which have risen by almost 90% year-on-year.
After paying tax and essential bills in October, the average household had £203 per week left – the lowest amount since August 2018.
Asda is doing all it can to help families enjoy the festivities and has increased the size of its Christmas range to more than 700 products at all price points to suit different customer budgets.
The supermarket has also boosted its online delivery capacity this year and will have more than one million home delivery and click & collect slots available the week before Christmas, including deliveries on Christmas Eve for the first time.
It also began its Winter Warmers incentive in its cafes on November 1st, offering those aged 60 and over the chance to enjoy soup, a roll and unlimited tea and coffees for just £1 in any of its 205 cafes all day and every day until the of the year. This is running alongside its incredibly popular Kids eat for £1 offer, with more than 770,000 meals served since the launch in late June.
* The Asda Income Tracker is a measure of ‘disposable income’, reflecting the amount remaining after the average UK household has had taxes subtracted from their income and bought essential items such as: groceries, electricity, gas, transport costs and mortgage interest payments or rent. The Income Tracker measures the amount left over to spend on discretionary purchases such as leisure and recreation goods and services.