Have a very thrifty Christmas

STAYING in will be the new going out this Christmas with computer games replacing partying.

This year’s annual Christmas retail survey from business advisory firm Deloitte signals a return to a “good old fashioned” festive season as the deepening economic gloom affects consumer pockets.

A predicted 30% decline in socialising spend to an average £103 makes Yorkshire and the North East the lowest spending region in the UK on going out this Christmas.

Overall spending per person for Yorkshire and the North East is anticipated to be £620 compared with £730 last year marking a 15% drop. This year’s number one wish list in the region will be computer games.

“The lavish partying has stopped,” said Nicola Frampton, retail director at Deloitte and based in Leeds.

“It’s all about in-tertainment this year, staying in is the new going out.”

More than 80% of Yorkshire shoppers are intending to use the supermarket for Christmas food shopping compared with 79% of the total population.

And only 20% agreed that they will buy more food and drink than they need compared with 29% of the total population.

People in the region are much less likely to use the internet for some of their gift purchases – 41% compared with the 50% national average.

Mrs Frampton said that price was very much back on the agenda.

“Discount and sales promotions will win customers this year according to findings that 58% of consumers in Yorkshire and the North East will take advantage of discount and sales this Christmas more than in the past,” she added.

“Supermarkets and local shops should be the winners this year as 47% of people in the region compared with 48% of the total population agree that due to high cost of fuel, they will be shopping more centrally this Christmas than in the past. However, consumer loyalty to localness has its limits.”

While 24% of UK consumers plan to spend less this year, one segment of the population is bucking the trend.

Some 36% of 16-24 year olds intend to spend more and 49% say they are going to have a good time at Christmas and worry about the cost later, compared with 23% of 25-55+ year olds. They are also the most optimistic about the economy.

“This age group have grown up in an affluent society with technology products and designer wear, are comfortable with debt and have never been in a recession,” said Mrs Frampton.

In spite of the current economic turmoil however, 57% of UK consumers said they intended to spend the same this Christmas as they did last year while 24% of respondents said they will spend less and 19% said they will spend more.

For many people in the UK, this year will be Christmas as usual. But the survey also found that both retailers and consumers think 2009 will be tough.

Around 83% of retailers and 64% of consumers believe economic conditions in the UK will deteriorate.

The finding are reflected in the latest KPMG/British Retail Consortium (BRC) study. The research showed that total sales in October were the lowest for the three years falling 2.2% on a like-for-like basis.

As in previous months, food and drink was the only sector to show sales significantly up on a year ago. Clothing and footwear remained poor and often discount-driven, despite colder and much wetter weather than last October. Furniture and homewares fell further below year-earlier levels, despite further discounts and promotions.

Discounts and promotions continued but often failed to tempt customers unless they perceived value or the purchases filled a need.

Non-food non-store sales in October were 16.6% higher than year ago. Online sales fell on the days after the banking crisis hit, as consumers were anxious about their financial outlook.

Stephen Robertson, director general of the BRC, said: “These are seriously poor numbers, especially in the run-up to Christmas.

“For the first time in three years total retail sales fell into negative territory – further evidence of how difficult trading conditions are for retailers.

“Like-for-like sales have now fallen in seven of the last eight months with every sector down on a year ago apart from food and footwear. Shoe sales were driven by extensive discounts.”

He added: “The negative sales figures reflect record low consumer confidence. These are tough times for families and retailers, who are hoping the Bank of England’s bold interest rate cuts will provide a much-needed boost.”