January bargain hunters plan £5.5 billion spending spree

Brits are set to see in the New Year with a £5.5 billion shopping spree in the January sales.

New research from Direct Line Home insurance reveals that sales shoppers plan to splash out £1.8 billion more than they did in January 2006. The bulk of their spending will be on electronic equipment, with nearly one in three (30 per cent) hoping to pick up digital TVs, laptops, and MP3 players.

Household goods will also be popular, with upholstery (13 per cent) and decorating goods (17 per cent) topping sales shoppers' wish lists. Many will also be looking for fashion bargains, with four in ten (42 per cent) planning to make New Year savings on clothes and footwear.

For many this seasonal spree comes in the wake of a quiet Christmas, with nearly half (45 per cent) of Brits saying they tightened their belts this year with a view to picking up bargains in the sales.

In preparation for this shopping binge, 2.7 million Brits requested vouchers instead of Christmas presents from their friends and family, meaning £73 million in cash is currently stashed in British homes waiting to be spent.

Londoners are this year's biggest bargain hunters, spending an average of £171 on discount goods. Consumers in Wales are likely to be the most restrained, with an average spend of just £73 this year.

Carmel McCarthy, Direct Line's Home spokesperson, said: "Shoppers may be picking up many bargains this January, but with all the extra possessions in the home this Christmas, it's important that homeowners make sure all of their home contents are fully covered.

"Direct Line offers a 10 per cent increase in cover over the Christmas period to give its customers the chance to assess whether their policy is adequate and up to date."