A survey of more than 3,000 UK consumers about their gift buying intentions in 2023 found that a third plan to spend less on gifts in 2023 and two-thirds of consumers are reducing their discretionary spend.
The survey also found that while 36 per cent of consumers said they would continue buying gifts at 2022 levels, only 9 per cent of people said they will spend more on gifts this year when compared to last.
Nearly half (48 per cent) of all consumers buying gifts in 2023 plan to buy more practical gifts to help the recipient such as homeware or clothing.
A third of consumers (33 per cent) plan to treat the recipient to an experience such as a meal out or theatre tickets.
A quarter plan to gift cash this year.
One in 10 consumers said they will be using their savings more to buy gifts this year while a further one in 10 (13 per cent) said they will be using credit more in order to buy gifts.
Linda Ellett, UK head of consumer markets, retail and leisure, KPMG, said while the cost-of-living crisis is forcing a scaling back of spending on gifts in 2023 for a third of consumers, it is also shaping the types of presents that people plan to buy.
“As consumers search for quality gifts that bring practical help to the recipient or give them a treat experience that brings a break from the stresses of day to day life, retailers and brands need to understand these purchasing priorities — bringing home via their marketing and customer service how their product or service brings benefit or relief within this climate,” she said.
KPMG’s December consumer research found that 61 per cent of consumers plan to reduce their non-essential spending in 2023. Essential costs (food, energy, fuel, mortgage, or rent) already being too high and a concern about how high they still may yet go were the two most common deterrents to being able to spend more on non-essential goods and services.
One in 10 consumers highlighted concern about energy bills after April while consumers also cited fixed-term mortgage deals coming to an end and variable mortgage rates rising as their barriers to spending. Of all the consumers with savings, 43 per cent said they are using them to help meet their essential costs.
