One in five shoppers to spend less at Christmas due to political uncertainty

In a survey of 2,021 UK adults, 20% of respondents said they will spend less money on Christmas gifts and food this year, due to the impending election and ongoing uncertainty around Westminster and the impact Brexit could have on the economy, according to research compiled by Walnut Unlimited.

In terms of gender splits, the data found females were more likely to spend less because of Brexit than males – 23% to 18%.

This number jumped up significantly in the 18-34 age group. When it comes to the general election, 28% of 18-to-24-year-olds and 33% of 25-to-34-year olds said they would spend less as a result. With Brexit, this jumped up to 29% of 18-to-24-year-olds and remained at 33% of 25-to-34-year olds.

This level of uncertainty is perhaps to be expected, as this will be the first time a general election has been held in the UK in December since 1923.

Commenting on the findings, Walnut Unlimited retail research director Amy Nichols said: “We know that humans have an in-built need for certainty. We are more likely to make a decision if specific information is available. The uncertainty of Brexit and a general election is causing consumers to not take action and avoid making rash decisions when thinking about their spending this Christmas.

“We’ve seen that younger people are more likely to spend less as a result of Brexit and a general election. Those likely to be at the start of their careers with less disposable income will be more affected by the current uncertainty surrounding UK politics.”

Half of shoppers to look online

The data also found that half of respondents were planning to conduct the bulk of their Christmas shopping this year online.

Walnut Unlimited found 50% of respondents across all age demographics would do most of their Christmas shopping across all categories online this year, followed by 31% on the high street, 8% with local retailers, 4% with independents and 7% ‘other’.

However, it found that 18-24-year-olds are less likely than the generation before them to buy online, which Walnut Unlimited hypothesised might mean there is a “new generation coming through who value the in-store experience”.

More than half of respondents said they would prioritise their Christmas spending on food this year (56%), followed by toys (13%), health and beauty (12%), electricals (10%) and fashion (8%).

Nichols said: “During periods of uncertainty shoppers will prioritise necessary purchases and defer big decisions on high-value items”.