26 Nov 2010

Shoppers Cautious over Christmas Spending ((tag:Horticulture Ireland, News, consumers, retail, trends, weather, jobs, events, tenders, landscapers, garden centre, nurseries, Fresh Produce, forestry, Growers, arboriculture, Sourcebook, Horticulture In

For new businesses hoping to make a killing over Christmas, uncertainty still abounds with just over half (51pc) of consumers planning to reduce their spend this year, according to AXA Financial.

Just 1pc plan to increase spending over the festive season. One in ten is waiting to see what the December Budget holds.

The survey of 1,000 adult consumers was conducted within the last few weeks for AXA Financial by independent market research company, iReach. Those aged 35-44 are most likely to reduce their Christmas spending with 55pc confirming this.

“It looks like being another difficult Christmas for retailers with the added uncertainty of a particularly tough Budget and the arrival of the IMF which could delay the start of spending by many,” commented David Walls, director, AXA Financial.

“However, the good news is that a significant proportion of the population (39pc) is determined to celebrate Christmas and maintain spend despite or even because of all the doom and gloom.”

Looking longer term

The Budget becomes even more of a factor for those who are looking longer term. Almost a quarter (23pc) say that their discretionary spending (on holidays, entertainment, home improvement, electrical goods etc) over the next 12 months will depend on the Budget. Some 42pc expect their discretionary spending to decrease while 30pc see no change. Only 5pc expect to increase discretionary spend.

Photo: David Walls, director, AXA Financial