Last Updated: Monday 23rd April, 2012
This year Santa got more to worry about than just making sure his reindeer are well fed and his elves are working hard. Why? Because of the global economy, of course! Those of us who supplement Father Christmas's toys and gifts, buying our own and putting them under the tree, were not able to afford as much this year according to a research group at Mintel.
The company's studies show that UK retail sales, which usually grow annually by 5%, will froze this year at 0% growth. Their research has also shown that 50% of us will spend less this Christmas than we did last year. This is almost twice the number of people who professed to cut back in 2007.
- Pressure and Stress
Christmas is a time of giving and I'm sure Santa would agree, it's a time of warmth and relaxation, merriment and glee. It's not a time for worrying about debt or our inability to afford things. However, Richard Perks the Director of Retail and Financial Research for Mintel has said: "There is always a lot of emotional pressure to spend money and spoil everyone over the festive season, and during the years of unprecedented boom time, many Brits enjoyed lavish Christmases. But this year, as budgets tighten, Christmas will become a much less indulgent affair."
- Youth Market Still Afloat
Of course, many older generations remember getting coal and a satsuma in their stocking, but these days children seem to want more. Much more, and it makes us sad if we can't meet their high Nintendo Wii shaped expectations. As children grow and leave home, especially as students, they learn to reign in their desire to buy expensive things and usually they learn how to budget. Interestingly, this year it's the youth sector (20 - 24) which is most buoyant in the retail world.
It's not children or their parents, but young adults who are still spending. Those aged between 20 and 24 years old are spending cash on the high street in stores such as H & M, Topshop and Primark and keeping the industry going. Only 30% of people aged 20 to 24 (typically the age of many students) are saying they'll spend any less this Christmas than last. Whereas 41% of people in the nation as a whole are saying they'll need to cut back this festive season.
According to Perks: "Shops that target the under 25s, such as young fashion, games, and those that sell small electricals, should do relatively well this Christmas in comparison to other markets."
- Happy Christmas Advice
Santa wants everyone to remember that Christmas is about spending time with the people you love. There's no need to stress out too much about Christmas and you'll likely find that spending quality time with your loved ones is far more important than expensive gifts or luxury food.
Many finance experts predict people spending as much money as usual on the Christmas dinner, but cutting back a little before and after, in order to save on the cash and the calories. This Christmas could be the healthiest and most financially responsible we've had for years. Let's enjoy it!
