# Christmas shopping begins early as Britons face cash crunch
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-09
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: British Consumers Spreading Christmas Costs Amid Rising Inflation
Meta Description: Discover how British consumers are proactively managing their finances by buying gifts early and spreading Christmas costs to avoid a financial squeeze in
URL: https://financedigest.com/christmas-shopping-begins-early-as-britons-face-cash-crunchhtml

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By James Davey and Sarah Young

LONDON (Reuters) -British consumers are trying to navigate the hit to their finances by spreading out the cost of Christmas, buying gifts early so they do not face a squeeze in December, clothing and food retailer Marks & Spencer said on Wednesday.

Other retailers, including supermarket group Sainsbury’s and fashion chain Primark, have highlighted how Britons, desperate to still enjoy the festive season, have begun buying supplies and gifts early, aware that soaring inflation is eating into their monthly disposable income.

[“Customers are telling us that they do want to protect Christmas](https://www.financedigest.com/christmas-debt-hangovers-how-banks-can-help-customers.html "CHRISTMAS DEBT HANGOVERS: HOW BANKS CAN HELP CUSTOMERS"), they are looking to trade into more value categories,” M&S Chief Executive Stuart Machin told reporters, after it reported half-year results.

Britons have been hit this year by rising energy bills, higher mortgages and rents, plus [record food inflation](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc-2.html "UK shop price inflation hits record 8% in January: BRC"), leaving many with little or no cash left at the end of each month.

Machin also noted a trend of more eating at home as consumers look to [save money](https://www.financedigest.com/how-to-save-money-for-a-car.html "How to save money for a car") by cutting down on restaurant visits. “That is good news for our food business,” he said.

Katie Bickerstaffe, joint CEO, [told reporters that its customers](https://www.financedigest.com/uk-banks-and-insurers-told-to-step-up-help-for-struggling-customers.html "UK banks and insurers told to step up help for struggling customers") had already bought about 30% of their clothing and homewares Christmas gifts.

People are planning forward a little bit now,” she said, highlighting very high [demand for Christmas](https://www.financedigest.com/apples-australian-workers-go-on-christmas-strike-demanding-better-wages-work-terms.html "Apple’s Australian workers go on Christmas strike demanding better wages, work terms") pyjamas.

She said the clothing and home division was increasingly focusing on improving its value, with 70% of its gifts [retailing for less than 20 pounds](https://www.financedigest.com/incentive-qas-expands-retail-portfolio-with-million-pound-shopping-centre-contract.html "Incentive QAS Expands Retail Portfolio With Million Pound Shopping Centre Contract") ($22.87).

M&S’s comments chimed with Primark’s on Tuesday.

People are spreading their [Christmas purchases across three or four pay days](https://www.financedigest.com/man-charged-under-britains-treason-act-over-christmas-day-incident-at-queens-home.html "Man charged under Britain’s Treason Act over Christmas Day incident at queen’s home"), rather than relying on cash that they have in hand in December,” George Weston, the CEO of Primark-owner Associated British Foods, told Reuters.

Similarly, Sainsbury’s said last week [consumers were buying](https://www.financedigest.com/from-burgers-to-bleach-stressed-consumers-buy-cheap.html "From burgers to bleach, stressed consumers buy cheap") cakes, mince pies and chocolates in advance of Christmas.

M&S said on Wednesday that although it was currently trading well, conditions for both it and consumers were deteriorating.

I don’t think we’re unique in saying that next year (2023-24) looks tough,” [finance chief](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") Eoin Tonge said.

The [cost of doing business is going to get higher because of energy, it looks like the consumer’s going to be struggling with (the) continued cost of living crisis](https://www.financedigest.com/estonias-pro-kyiv-government-faces-election-test-amid-cost-of-living-crisis.html "Estonia’s pro-Kyiv government faces election test amid cost of living crisis") and also higher interest rates.

($1 = 0.8747 pounds)

(Reporting by James Davey and Sarah Young; Editing by Kate Holton and Alexander Smith)


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