Savvy shoppers spread the cost of the festive season

Shoppers are reacting to the credit crunch by spreading the cost of Christmas and taking advantage of early high street sales, according to research from Sainsbury's Finance.

By the end of the third week of November, 72% of the UK adult population have admitted to already spending an estimated £7.21 billion preparing in advance for the festive season, up from £6.29 billion at the same stage last year.

The findings are backed up by Office of National Statistics data claiming that the value of retail sales in October 2008 is 3.2% higher than in October 2007.

The average amount already spent on Christmas by mid-November is £150.78 per UK adult, up 14% from £132.42 at the same stage last year. However 6% of us (an estimated 3.00 million) have already spent over £500.

Donald MacLeod, Head of Sainsbury's Credit Cards said: "Christmas is one of the most expensive times of the year so it's encouraging to see that a large number of shoppers are spreading the cost over a longer period of time, maybe utilising a couple of pay packets rather than just their December one, which seems particularly prudent this year given the current economic climate."

On a location basis, the North East and Scotland have the highest percentage of people who have already spent money preparing for Christmas (80%), closely followed by the West Midlands (78%) and Yorkshire/Humberside (77%).

To find out about the Sainsbury's credit card which offers Nectar points equivalent to 2% cash-back on Sainsbury's purchases, visit sainsburys.co.uk