If you are perhaps one of the few who is celebrating Christmas late and find yourself in a position where you still need to buy gifts, today is not your lucky day. As the cost-of-living continued to increase across the nation, this year’s Christmas was felt particularly hard by many people across the world. With the holiday season already being a time of increased expenses, the higher-than-usual prices added additional stress to this year’s holiday period.
This year’s Christmas gifts one of the most expensive on record
According to a consumer report by respondents to the latest KPMG Next Gen Retail Survey in Ireland, this year’s Christmas gift prices were some of the most expensive on record. 72% of respondents reported that they found this year’s Christmas to be significantly more expensive than usual with 36% of respondents stating that they expected to spend less on Christmas this year than what they did last year.
“Price is still the primary factor influencing consumers when choosing where to shop, with 52% ranking it as a crucial consideration,” said Keith Watt, Head of Retail at KPMG. “Our findings suggest that this Christmas will be marked by careful budgeting and a stronger emphasis on value, presenting retailers with challenges and opportunities to meet the needs of Irish shoppers,” he continued.
Budget and spending habits changed this year
As a response to the growing prices of Christmas gifts, participants of the survey responded in ways which reflected that consumer spending habits have also changed this holiday season as budgets become tighter. More than half of participants in the survey planned to reduce their Christmas shopping budgets and 56% of respondents revealed that they intended to cut back on dining out to save money. The survey also revealed that the youth in particular are struggling, with a large proportion of 18-34s (30%) indicating that they planned to fund their Christmas gifts using credit facilities.
“Irish shoppers may be tightening their belts this Christmas, but retailers should remain cautiously optimistic,” Mr Watt said. “Recent CSO data shows retail sales (excluding car sales) the monthly volume of retail sales was up by 0.7% in September. With easing inflation, a strong labour market, and rising real incomes, there’s positive momentum for retail as the busiest time of the year approaches.”
The survey highlighted how half of consumers have reduced their spending and bought fewer items, while 46% have taken advantage of promotions or discounts, used loyalty programs, and opted for more store-brand products. Notably, 40% of individuals under 45 have canceled subscriptions in the past year. Meanwhile, 55% of individuals over 55 have utilized retailer loyalty programs to secure lower prices, underscoring the diverse ways different generations approach cost-cutting.
Tips for keeping remaining Christmas gift expenses low
If you are still needing to do your Christmas shopping, take advantage of the post-Christmas sales in order to maximize your savings. This time can also be useful for shoppers to start getting ahead for next year’s Christmas provided you have the budget left to start thinking about Christmas 2025. In addition, if you are still scrambling for Christmas gifts, try not to fixate on specific items as chances are they may not be in stock anymore.
Christmas and the holiday period can be a very stressful and expensive time for families. With families often using this period to see each other, the pressure to impress as hosts and provide gifts can be very overwhelming. It is important to adhere to strict spending budgets this time of year so as not to give into the pressure of over-consumption or to compare your spending plans to others. Families with young children may feel especially affected by this as they take on the role of Santa and compare their Christmas spending of gifts for children to other parents.
