With just over a month until Christmas, a significant shift is underway in how British households are approaching their festive food shopping. Traditionally a time for indulgent spending, this year's preparations are being reshaped by economic concerns surrounding the upcoming Autumn Budget.
Budget Anxiety Drives Change in Festive Spending
Experts are warning that consumer habits are changing in the lead-up to the festive season. Rachel Reeves, the Chancellor, is set to outline the government's planned spending and revenue on November 26, and many Brits are waiting in anticipation for what the announcement will reveal about the nation's financial future.
This apprehension is directly impacting shopping baskets. According to Karen Betts, chief executive of the Food & Drink Federation (FDF), shoppers are now planning to restrict their spending on food this Christmas. While seasonal products continue to sell, there is one clear and notable change in behaviour.
"Instead Of, Not As Well As": The New Shopping Mantra
The key difference from previous years lies in how these festive items are being purchased. Shoppers are now deciding to pick up Christmas items instead of, rather than as well as, their usual shopping. This marks a stark contrast to the past, where households would typically expand their budgets to accommodate the extra expense of the holiday season.
"I think what we're seeing... is that where people are buying those items now, they tend to be within their same basket spend, so not as an add-on to a basket that they would otherwise have bought," Ms Betts told The i.
Tight Trading Window for Supermarkets
Major retailers including Tesco, Sainsbury's, Asda, Morrisons, and M&S have already begun rolling out their Christmas ranges. However, it remains to be seen how sales will be ultimately affected by this new consumer caution.
Ms Betts highlighted a further challenge for the industry. She explained that even if the Budget reveals a more positive forecast, the window for recovery is narrow. "Even if then the mood of gloom lifts and people do decide to spend into Christmas, you've only got two or three weeks of proper Christmas trading left," she said. This creates a potentially difficult situation for food and drink companies as they navigate the changing habits of their customers during the most crucial trading period of the year.
