Christmas as usual?

UK consumers plan to spend less on food and drink this festive season, according to a Christmas Retail survey published by the business advisory firm Deloitte.

It is socialising where the biggest cutbacks are planned, with an average of £126 expected to be spent on socialising this year, a 12% decrease from last year.

 

But it's not all bad news for pubs and restaurants. Whilst total spend in all categories is expected to decline, 57% of UK consumers say they intend to spend the same this Christmas as they did last year. For many people in the UK it will be Christmas as usual.

 

The survey also found significant differences in spend around the UK. People living in London plan on spending the most this year at £158, followed by those living in Northern Ireland who plan to spend £155. People living in the North East are expected to spend the least – just £90 each.

 

Those aged 35-44 are the biggest spenders on socialising with an average spend of £161.  Older age groups are expected to spend the least with those over 65 planning to spend just £74. 

 

Glyn Bunting, partner in the hospitality & leisure team at Deloitte said: "Despite significant concerns in the pubs and restaurant sector, operators with a strong food offering are cautiously optimistic about Christmas, although rather nervous about a possible New Year hangover persisting well into 2009.

 

"The sector has proved remarkably resilient and a number of major operators have produced positive like-for-like sales growth. The poor summer weather helped the casual dining sector greatly as consumers shied away from beer gardens and barbeques in favour of cinemas and restaurants."

 

"Accordingly, the pubs and restaurants sector has a renewed focus on value for money and quality of food offering. Wet-led pubs are suffering at the moment, following the poor weather over the summer with the absence of a food offering over the festive period."

 

Bunting added: "It has been predicted that staying in this Christmas will be the new going out, since non–essential, discretionary spend is cut as consumers feel the pinch. Supermarkets are likely to benefit from people celebrating the festive period indoors and could take some business from restaurants and bars. While eating turkey with all the trimmings is more or less essential over the festive period, eating and drinking out in bars and restaurants might be less so."

Words: Maria Bracken

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