Half of consumers expect to cut back on festive shopping [Video]

Families are set to cut their festive shopping as the cost-of-living crisis puts a squeeze on disposable income.

More than a third of people (36%) have said they expect to cut down on spending this festive season compared to last year.

Almost three-quarters (72%) expect Christmas shopping to be significantly more expensive this year, up from 70% last year, according to the latest KPMG Next Gen Retail Survey – while more than half (52%) said they will cut back on their festive shopping spend.

And there’s more bad news for the under-pressure hospitality sector, with 56% of respondents planning to cut back on eating out this year.

Recent price rises mean more than half of people (54%) expect to give smaller gifts this year due to cost-of-living pressures.

Although inflation is currently below 1%, after hitting a peak of peak of almost 10% two years ago, shoppers are still feeling the pinch of the cost-of-living crisis.

KPMG’s …