• Northern Ireland is home to the most Christmas savers;
• The Welsh are most likely to pay for Christmas by credit card;
• Young women and older men save for the festive season

Half of UK consumers save for Christmas, according to research by business advisory firm Deloitte.  50% of British people surveyed said they have saved money for year-end purchases, with young women and the Northern Irish leading the way. 

Nearly seven out of 10 (69%) people in Northern Ireland save for Christmas, followed by 62% in Scotland, the North West and the East Midlands. People in the South East and West Midlands are least likely to put money aside, but even here 41% of people did so.

While women are less inclined to save for Christmas as they get older, the opposite is true for men. Two thirds (66%) of 16-24 year old women and 58% of 25-34 year olds put money to one side, compared to just 41% of over 55s. However, only 34% of 16-24 year old men save for the festive season, compared to 59% of those aged 55 and above.

When it comes to paying for Christmas, 80% of UK consumers plan to pay for the majority of their Christmas gift and food shopping using cash or debit card. Only 16% say they intend to put the bulk of their shopping on credit card.

Wales has the highest percentage of credit card users with 28% of respondents expecting to pay for most of their shopping on credit. People in the South East (23%) and Greater London (17%) are among those most likely to use credit cards to pay for the majority of their Christmas shopping.  The North East is the region least likely to pay for Christmas by credit card with only 5% of people planning to do this.

Nick Sandall, head of retail banking at Deloitte, commented: “Our findings show that one in two people in the UK actually save for Christmas. This is good news, given that UK consumers already owe billions of pounds in credit card debt. It would clearly be a concern if people were putting most of their Christmas expenditure on credit as well. 

“People in London and the South East typically spend below the national average on gifts, food and drink and socialising at Christmas.  But the fact that the general cost of living in this part of the UK is so high means that they are still likely to have to rely on credit for Christmas.”

Sandall added: “Consumers will need to keep an eye on their Christmas spending this year. Credit won’t be as easy to come by in 2008 and, if they do slip into the red, they may well find that borrowing is more costly as credit card, overdraft and loan rates creep up.

“Financially, there is a chill in the air and for the UK consumer, the Christmas message is clear – overspend now, repent at leisure. That may not sound a very seasonal greeting, but it could be a valuable guide to ensuring a Happy New Year.”

For information on supporting tables, download our press release Deloitte research shows half of UK consumers save for Christmas. (PDF, 195 KB)

Ends

About the research
The survey findings were based on consumer data obtained by market research undertaken by TNS on behalf of Deloitte. Over 1000 adults aged 16+ were interviewed on 31 August 2007 - 2 September 2007. The respondents were selected according to a quota sample designed to be representative of all UK adults. Replies were also received from questionnaires sent out to over 350 of the United Kingdom’s retailers.  The retailers were from a cross-section of the industry.

Survey questions relating to how much consumer will spend and confidence in the economy were repeated between 2-4 November.

Read more on the The Retail Review: Christmas Retail Survey 2007

Find out more information on the author of The Retail Review, Tarlok Teji

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country's leading professional services firms.  Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu ("DTT"), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other's acts or omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.