Many consumers want to save on Christmas presents
High inflation and a correspondingly tight wallet: according to a survey, a majority of people in Germany want to spend less on Christmas presents this year. Two thirds of respondents want to reduce their spending, more than one in four even significantly, according to a representative survey conducted by the consulting firm Ernst & Young (EY). More than 1,000 adults in Germany were surveyed by a market research institute at the end of October and beginning of November.
According to the survey, consumers intend to spend an average of 250 euros on Christmas gifts this year, slightly less than last year (252 euros). By comparison, the figure for 2021 was still EUR 273. At Christmas before the start of the coronavirus pandemic, i.e. in 2019, it was EUR 281.
Retailers could counteract with discounts
"The rapid price increases have made life more expensive and restricted financial leeway - and gift budgets are suffering as a result," said EY retail expert Michael Renz according to the press release. The situation is becoming increasingly difficult for retailers. "Because if you also take inflation into account, we have to report a massive slump in gift budgets over the past three years and significant real sales losses."
According to Renz, the success of the Christmas business also depends on the weather, as always. "What is certain is that retailers will have to make a huge effort to encourage people to spend money," said Renz. The retail expert assumed that the sector would try to counteract this with price cuts and discount campaigns. Ultimately, however, this is not a sustainable model for success.
According to the survey, gift vouchers and cash are likely to be the most common gifts under the Christmas tree again this year. This is followed by toys, food and confectionery, clothing and books.
Given the context, here are two sentences containing the given words:
The drop in consumer spending on Christmas presents could significantly impact the retail trade, especially with many retailers relying on holiday sales to fix their annual profits. Despite the economic challenges, fixed discounts and trade promotions might help attract consumers looking to save during the festive season.
Source: www.dpa.com
