Consumers set to spend less on food this Christmas

Over 29 million consumers will be cutting back on the amount of money they spend on food and almost 7 million will be shopping at a cheaper supermarket than usual this Christmas, according to the latest uSwitch.com Consumer Opinion Panel. The cutbacks are not just about saving a few pennies either - people are set to spend over £1.7 billion less on food this credit crunch Christmas, spelling further gloom for Britain's struggling retailers.

The research suggests that recent shopping trends will become even more noticeable in the run up to Christmas. Almost half of consumers (48%) have already switched to a cheaper supermarket this year and over a third (39%) are no longer buying luxuries or treats as part of their weekly shop. This careful living carries on into the festive season with almost a third (32%) of people saying they will be cutting back on the amount of alcohol they will be buying. One in ten (12%) say that they won't be buying any spirits at all to try to save some cash, while 15% will be buying cheaper bottles or cases of wine to combat the problem of pricey plonk.

But savvy shopping alone may not be enough to rescue Christmas 2008. The majority of people are taking advantage of ‘Buy one get one free' offers (92%) and money off vouchers (80%), while almost a third of consumers (32%) are purchasing damaged goods at a reduced price. Despite these cutbacks, stockings will still not be overflowing. Over half (53%) of Brits - 24 million - will be spending less on presents this year, while a further 43% - 19.8 million - will be cutting down on the number of presents they will be buying.

It will be lonely this Christmas.....

Tummies may be rumbling this Christmas, but this is not the only emptiness consumers can expect to feel. The research shows that almost 12 million people (26%) are likely to be staying at home to save money this year, rather than travelling to see family in the UK or abroad. In addition, 15% will be cutting back on the number of people they will have at the Christmas dinner table to immediate family only.

No festive cheer...

With recession and redundancies looming, many firms have already pulled the plug on office Christmas parties. But it looks like goodwill will generally be in short supply with over a third (36%) of people planning on going to less Christmas parties this year and over half (54%) spending New Year at home to save the pennies.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Our research shows that consumers have little or no appetite to play the fiddle while Rome burns. The frugality that people started to adopt earlier this year now looks set to pick up pace and continue through Christmas and into the New Year. Households are preserving cash as very often this is their only protection against market volatility, recession and redundancy. Whether the Government's VAT cuts will restore consumer confidence enough to see shoppers picking up their shopping baskets in earnest again remains to be seen.

"Consumers who are seriously concerned about affordability this Christmas should not just look at cutting back on shopping. They could save up to £1,500 by reviewing their household bills and moving to cheaper suppliers. Simple steps such as switching to an interest free credit card or lower rate loan, moving to a cheaper insurer or to a value for money utility supplier, can cut your bills and put money back in your pocket. This will also set you up well for the tough times ahead."