New research has revealed that the average person in Britain will spend £603 on Christmas this year, contributing to a national total of over £30 billion. The survey, conducted by PayPal, highlights how shoppers are adopting more strategic approaches to manage their festive spending amid rising living costs.
Regional Differences in Shopping Savvy
The study found that the savviest shoppers are based in London, followed by Sheffield and Cardiff. In contrast, residents of Newcastle, Leeds and Liverpool were identified as the least strategic when seeking out deals.
Shoppers employ a variety of methods to maximise their money, including bargain-hunting, collecting loyalty points, using rewards programmes and taking advantage of special offers.
Rise of the 'Points Pro'
Around 31% of Britons use a wider mix of payment methods to manage costs, with many adopting a 'points pro' mindset. Approximately one in five (18%) save loyalty points for festive purchases, while 16% set aside gift vouchers to help cover the cost of Christmas shopping.
These 'points pros' expect to redeem an average of £57.20 worth of rewards. The average Brit estimates they will save £88.70 through a combination of deals, cashback offers, loyalty points and shopping early.
The strategic approach appears to reduce stress, with 58% of respondents saying they feel more in control of their holiday spending when they have a clear payment plan.
Buy Now, Pay Later Usage
Dave Jones, head of UK consumer at PayPal, said: "After the Budget, every pound has to work harder - and this Christmas we're seeing a new kind of shopper emerge. The 'points pro' isn't cutting back on Christmas; they're outsmarting the cost of it: stacking loyalty points, vouchers, cashback and flexible payments to get the same festive season for less."
Jones added: "The Brits feeling calmest this December aren't the ones spending least - they're the ones who've planned how they'll pay."
One in seven people - around 7.7 million - plan to use Buy Now, Pay Later services, such as PayPal's Pay in 3 or Pay in 30, to spread the cost of Christmas. Reasons for doing so include spreading the spend across paydays (55%), keeping money in their account for other festive costs (35%), helping with budgeting (34%), avoiding paying interest (33%) and avoiding using a credit card (26%).
