Savvy shoppers to splash out this Christmas

Despite a tough year of recession and cutbacks, Brits aren't planning to be frugal over the festive season, according to research by home insurer LV=. The nation is set to spend a total of £13.5 billion on Christmas presents this year, with each present-buying adult splashing out £294 on gifts.

People in their 40s are the most extravagant spenders, averaging £327 on their festive offerings, while the 18-20s keep their shopping reined in to just £204. The Welsh are the most generous nation with an average spend of £342 each.

But the hard times of the last year haven't been completely forgotten, and this year many Brits are taking measures to cut corners and save some money in the process. Almost one in three people (27%) admit that this Christmas will be a struggle financially, and 14% have consciously tightened their belts. As a result, half  of UK adults (49%) say they will only buy gifts for close friends and family.

Four in 10 people say they are now more interested in value for money than where something comes from, and as a result are looking beyond the high street for their presents this year. Over half (54%) plan to buy presents on online retail sites, marginally up on the 51% last year. Online auction sites have also seen a boost, with a quarter of shoppers (25%) turning to bidding for gifts this year, compared with 22% last year. Cost is clearly a deciding factor for many, with 8.7 million people across the nation (19%) stating that all their Christmas presents will be purchased from shops offering discounts in early sales.

To offer extra protection for the valuable presents left in people's homes at this time of year, LV= home insurance is continuing its annual offer of a free 10% increase in home contents cover limits over the Christmas period.

John O'Roarke, managing director of LV= home insurance, said: "It's been a tough year financially for many families but clearly people feel that Christmas isn't the time to completely cut back. Instead, shoppers are opting for alternative ways of saving some money, by buying for fewer people or looking in outlets where they wouldn't normally shop. The 8.7 million people who intend to buy presents purely in pre-Christmas sales clearly feel that there will be some bargains to be had - so there will still be plenty of presents under the Christmas tree this year."

For more information, log on to lv.com.