Last-minute Christmas spending approaches £6.7 billion

With only a week to go until Christmas Day, new research from Sainsbury's Credit Cards indicates that the nation intends to spend some £6.7 billion during the last week before Christmas. While the bank's survey of the nation's festive spending habits reveals that adults expect to spend on average £170.25, some 1.9 million shoppers intend to spend over £500 and 135,000 adults reckon they will splash out over £2,000.

Defying the downturn and snowy weather, a whopping £560 million is expected to be spent on new electrical items, including TVs and white goods and a further £2.1 billion on food and drink bought from retailers.   While going out is set to account for nearly £1 billion of the UK's spend, consumers intend to splash out £2.4 billion on presents and £189 million on decorations.

The bank's research also indicates that around 29% of this last-minute spending - some £1.9 billion - will be placed on credit cards with around 11 million people intending to put half or more of their last-minute Christmas shopping on their credit cards. One in five (8.4 million people) shoppers intends to place more than 80% on credit cards.

Yet new research from Sainsbury's Credit Cards reveals that many shoppers will miss out on reaping any rewards on their spending with only a third (32%) of credit cards currently offering rewards on purchases.  The research also shows that there are a handful of credit cards on the market that impose a limit to the value or amount of rewards you can accumulate over a certain period of time.

Up to 58% of the total spend looks set to be spent in supermarkets across the country in the next week. Sainsbury's Nectar Credit Card rewards customers with double Nectar points on their shopping, in store, online and in petrol filling stations for two years.  The extra Nectar points are equivalent to an additional 1% off their Sainsbury's shopping bill. These points can be further boosted when held in conjunction with other selected Sainsbury's Finance products. The maximum reward available is equivalent to 6% cash back, based on the customer holding five selected financial products plus a Nectar Card with Sainsbury's Finance.

Stuart McKeggie, Head of Sainsbury's Credit Cards said: "Once again there looks set to be a stampede of shoppers this week as people leave their shopping to the last week before Christmas. In these prudent times, people are also looking to stretch their budgets and are turning to supermarkets where they might once have shopped in department stores, largely because of variety, convenience and the rewards offered, such as with Sainsbury's Nectar Credit Card.

"Many shoppers intend to use credit cards for their Christmas shopping, which can be a safe and convenient way to shop and can provide great rewards for using them if you choose the right one. It is important to ensure that you have the right card for you though in terms of the rate, the introductory deal and the rewards on offer."

Those living in the South East are set to spend the most collectively in the week running up to Christmas £980 million, followed by Londoners at £878 million. The North East is likely to see the lowest spend with £277 million earmarked by locals for last minute shopping.