Shoppers expect to spend £7.89 billion

There is some speculation that British consumers will be tightening their belts in the face of economic uncertainty but despite this, new research from Sainsbury's Credit Cards indicates that this summer, people are planning to spend an estimated £7.89 billion in the sales. However, the findings suggest that this will be less than the amount spent last year.

The research, which asked people about their intentions, found that 25.78 million people anticipate spending on average £305.90 on summer sale purchases. These may include everything from electrical goods to clothes and home-wares. A very small set, some 3% of adults (1.39 million people), anticipate spending over £800.

However, the rising cost of living means that many people may be feeling the pinch as the research indicates that when compared to how much they spent on the 2007 summer sales, around 20% anticipate spending less this year, some 63% intend to spend around the same and only 8% plan on spending more. One in 10 people is not sure whether they will spend more or less.

The Sainsbury's Finance figures suggest that around 42% of summer sale spending - some £3.29 billion - will be placed on credit cards. An estimated 11% of people spending money in this year's summer sales intends to put half or more on their credit cards.

Donald MacLeod, Head of Cards, Sainsbury's Finance said: "A growing number of credit cards now offer some sort of reward every time you use them but some of these have catches. For example, some put a limit on the financial value of their reward schemes and others can make it difficult to redeem your rewards or points. This helps explain why only around 36% of people who have collected rewards linked to their cards over the past 12 months have so far bothered to claim them.

"If you are going to use a credit card in the summer sales, it pays to use one that gives you attractive rewards that are not only easy to collect but also redeem so that you really are earning whilst you spend and getting a little back."

As well as offering 0% interest on introductory purchases and balance transfers, the Sainsbury's Credit Card rewards customers every time they shop, for example, giving Nectar points worth up to 2% cashback on purchases in Sainsbury's including clothing, electrical appliances and groceries and also online at Sainsbury's To You and in Sainsbury's petrol filling stations.. Points can also be earned on out of store spend and can be easily redeemed against a wide number of options in conjunction with Nectar.

Sainsbury's Finance's research shows that the main items bought in the sales will be clothes (33.5% of summer sale spending), followed by home furnishings (18.2% of total spending) and electricals (15.5% of summer spending).

Around Britain, people in the South East expect to spend the most in the summer sales and those in the East Midlands and Anglia the least.

As well as offering attractive features and benefits, which could for example see someone who spends the equivalent of £100 a week on Sainsbury's purchases receiving Nectar points worth £104 at the end of the year for these purchases alone, Sainsbury's credit cardholders can also manage their accounts online with their convenient 24/7 online payment service.

To find out more about the Sainsbury's credit card, visit sainsburys.co.uk.