According to a study by Virgin Money, Brits are paying more for luxury items and are hunting for flashy gifts to sprinkle some extra magic over Christmas.
Brits are on a mission to ramp up the festive cheer with an eye-watering extra £2.2 billion splurged on Christmas delights like grub, decorations, and games, as half are set on making Christmas more epic following a rather “miserable” 2024.
In a poll of 2,000 adults more than a third are plotting to splash out big on pressies, coughing up an average of £479 each.
According to the research, family day outs have seen Brits forking out an extra £14 a pop, while snack spending has popped up by £10 and an extra £6 is being used to pay for on posh nosh on the Christmas dinner spread.
The research was commissioned by Virgin Money, which has released its Autumn Customer Spend Trends report which revealed customer spending is up year-on-year, with more than £27 million going on lifestyle purchases from eating out to entertainment.
Andrew Carter, head of personal banking at Virgin Money, stated: “While desire and expenditure for physical gifts is on the increase, respondents also expressed a desire to give and receive more experiential presents too, such as theatre and concert tickets and spa days.”
He added: “Wherever people are spending their money, it seems as though a little extra here and there is being spent to elevate elements of the festivities this year.”
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The study also revealed a shift in how Brits are planning their festive spending, with around a third adopting a strategic approach by seeking out discounts and sales to make their money go further.
An equal proportion are sticking to strict budgets to avoid overspending, while others are focusing on thoughtful, personalised gifts to show loved ones they care.
Experiences are also gaining popularity, with many choosing to prioritize gifts such as theatre trips, sports tickets, or spa days over traditional presents. However, respondents were divided on what gifts felt more meaningful.
Despite financial pressures, Brits are embracing the festive season with optimism. Carter added: “Getting a lot more for spending a little extra seems to be the name of the game and after a challenging year for many, Christmas is clearly a natural fit for enjoying some of the finer things.”
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