Despite inflation easing in recent months and stores such as Fortnum & Mason launching their Christmas displays, consumers will watch their festive pennies.
But after years of Covid Christmas disruption many will push the boat out for those closest, notably the young.
Two-fifths (44%) say they are buying fewer and cheaper presents and mainly for immediate family, reducing gifts for extended family, friends and colleagues, says VoucherCodes.co.uk.
Festive sales are likely to fall by 3% to £11.25billon, predicted the website’s annual Shopping for Christmas Report.
Anita Naik, savings expert at VoucherCodes, told the Express: “This year has been tough for Brits with price rises and mortgage and rent increases, so it’s no surprise that many people are having to cut back on the amount they buy this Christmas.
“This Christmas, toys will be the most popular gift as families focus on making Christmas special for the youngest generation.
“Lego is expected to be particularly popular, with one-fifth planning on buying some this year, and unsurprisingly given the popularity of the Barbie movie, one-tenth are planning on buying a Barbie item this Christmas.”
And baubles and tinsel will feel the pinch. Ms Naik added: “With sales predicted to fall a whopping 19.6% this year, Brits are expected to cut back on Christmas decorations, instead making do with what is stashed at home.”
Reuseable artificial Christmas trees are expected to be more popular than single-use real ones.
Kevin Mountford, of savings platform Raisin UK, said we typically plan to spend £403 on festivities, with just over one in 10 earning between £25,000 and £35,000 using their last pay cheque before the big day to buy essentials.
He said: “It highlights just how difficult the financial situation is for many across the country.”
