British households are dramatically scaling back their Christmas spending plans following the recent Budget announcement, with six in ten consumers pledging to be more price-conscious this festive season.
Immediate Budget Impact on Consumer Confidence
A snap poll conducted within 24 hours of Chancellor Rachel Reeves' Budget statement revealed an immediate drop in consumer confidence, forcing shoppers to reassess their festive budgets. The research by electronics retailer Currys found that 60% of Britons now intend to watch their spending more carefully during the upcoming Christmas period.
The survey highlights how the Budget has directly influenced shopping behaviour, with 42% of respondents saying the financial announcement has made them more likely to actively hunt for good deals. Nearly half of those surveyed - 48% - plan to use Black Friday sales specifically to help manage their festive spending.
Growing Scepticism Towards Traditional Sales Events
Despite increased reliance on Black Friday, the research uncovered significant consumer scepticism about the annual sales event. A separate study conducted before the Chancellor's announcement found that 66% of Brits consider Black Friday a con, while 59% don't believe most discounts are genuine.
This contradiction highlights the difficult position consumers find themselves in - feeling pressured to participate in sales events they distrust, while simultaneously needing to make their money stretch further during the cost-of-living crisis.
Tech-Savvy Shopping Strategies Emerge
Shoppers are becoming increasingly analytical in their approach to Christmas shopping, turning to technology to maximise their budgets. The survey revealed that nearly a quarter (24%) of consumers now use AI tools like ChatGPT, Google Gemini or browser extensions to find and compare deals, track prices or plan their festive spending.
Even more strikingly, 82% of shoppers will use AI tools to help generate gift ideas, demonstrating how technology is reshaping traditional Christmas shopping habits.
The shift towards practical and value-focused purchasing is evident in Currys' sales data, which shows a 94% surge in portable heater sales and a 61% increase in electric blanket purchases. Consumers are prioritising gifts that offer both functionality and energy efficiency during the winter months.
Other practical presents seeing significant sales growth include smartwatches (up 55%), beauty tools like stylers and straighteners (rising 35%), and STEM toys experiencing a remarkable 101% increase in popularity.
Ed Connolly, chief commercial officer at Currys, commented: "As customers digest the impact of the Budget, we're seeing people think even more carefully about how to stretch their money - and that means hunting out genuine value."
He added: "That's exactly why our 'Our Lowest Ever Price' Black Friday event matters so much this year. It's industry-leading - shoppers can trust that our prices are lower than they have ever been before."
The research paints a clear picture of a nation adjusting its Christmas expectations in response to economic pressures, with technology playing an increasingly important role in helping consumers navigate the challenging retail landscape.
