1st December 2016
The majority (64%) of UK adults are budgeting to spend an extra £96.22 per week on food during the Christmas and New Year period, research from short-term loan provider Sunny shows.
UK shoppers believe they will need to increase their spend by 115% to cover the whole Christmas and New Year period. They usually spend an average of £84 a week on groceries, but plan to more than double their spend across the festive season, bringing the total spend to £463 per UK adult.
The top three reasons that people believe they will need to spend more than usual on groceries during this time are:
They say that Christmas Day food will cost more than they would usually spend on a meal (45%)
They will be entertaining more friends and family than normal (39%)
They plan to buy larger amounts of food to stock up for the whole festive period (38%)
Supermarket Price Wars
However, despite shoppers planning to spend more, and with 11% starting to save for the Christmas grocery shop even before August, shoppers may be in for a money saving treat and could end up actually spending less than planned this Christmas.
Whilst food prices are expected to rise in 2017, inflation has dropped to 0.9% ahead of Christmas, and shop prices are currently 1.7% lower than this time last year. Supermarkets have also started a ferocious Christmas food war to lure shoppers in with discounts and special offers. This means most of the items families will want to stock up on for the Christmas period could end up costing them less than planned, and even less than last year.
Scott Greever, managing director of Sunny says: “Shoppers are clearly being very sensible and thinking about the extra costs that come with the Christmas food shop.
“However, with food price hikes not looking to come into effect until the start of next year and supermarkets battling to get shoppers through the door, savvy shoppers could be in for a nice surprise and end up spending a lot less than they budgeted for. They could be spending even less than last Christmas, saving vital pounds over the festive season so they can start 2017 with more cash in their pockets. Now is the time for shoppers to get the most out of their hard earned money with the best festive deals; there is no need to pay over the odds.”
1. Research conducted by Opinium Research between 11 – 14 November 2016 amongst 2002 nationally representative UK adults
2. Christmas period is taken to be between 17th December and 3rd January
3. UK inflation figure released on 15 November 2016
4. Data taken from BRC / Nielson Shop Price Index on 2 November 2016