Over half of West Midlands consumers have already started Christmas shopping - claim

The PwC seasonal sentiment survey report found that 57 per cent of West Midlands consumers have already started shopping for Christmas this year, with more consumers looking to spread the cost in the lead up to the festive period. 

The survey results were released this week, with the results holding firm from the previous edition in the summer.

This has led to 18 per cent of West Midlands shoppers increasing their Christmas budgets this year to treat family and friends, while 26 per cent said they plan to spend less than previous years. 

Overall the -13 sentiment reading remains the highest point for 18 months and an improvement of over 30 points since the low of -44 in Autumn 2022, which was the worst score recorded since the Global Financial Crisis in 2008. 

Despite sentiment holding firm, the widest gap on record (52 ppts) now exists between the most and least affluent socioeconomic groups since the survey began. Sentiment is still improving amongst over 55s and the most affluent, but it is falling in every other demographic group, particularly sharply among under 25s and the least affluent. 

Now 45–54-year-olds expect to be the worst off across all age groups, with under 25s also dropping below 25-34 year olds. The trend for under 25s is unusually low for this time of year - autumn has historically seen a more positive trend as young people head into the world of work or education.

However, those under 35 do remain in net positive territory - as they have done historically - driven by more younger people living at home, being more likely to have benefitted from wage rises, less likely to have been affected by mortgage rate rises, and having more disposable income as a result. 

Overall, just under a third of adults report that their household finances are ‘healthy’, a slight improvement on this time last year. At the other end of the scale, fewer than one in ten say they are either struggling to make ends meet or have missed bills or loan repayments. This number rises to 15 per cent of 45-54 year olds, and to just under a quarter of the least affluent socioeconomic group.

With financial considerations in mind, consumers are shopping earlier than in previous years, and many are expecting to spend less on Christmas. Already one in five had started their Christmas shopping by mid-September, with more than one in three saying that they either have started their shopping or are planning to shop earlier this year.

Sarah Phillips, PwC partner and consumer markets leader for the Midlands, said: “Every year it seems that Christmas starts earlier and West Midlands shoppers are taking advantage by getting ahead in order to spread the cost over the second half of the year. 

“This provides a steady stream of sales for the high street and has led to some shoppers feeling they are able to spend more this Christmas.

“That said, we can see the cost-of-living has led to some consumers tightening their festive budgets as inflation impacts household spending. 

“With Birmingham’s famous Christmas German Market starting even earlier this year, we should see footfall in the city centre increase as people start to get into the Christmas spirit.”