But that doesn’t mean consumers will spend any money this holiday season, says Milo Hartendorf, a partner at PwC and an expert on retail and consumer markets. “It all remains to be seen,” he says. ‘Our recent research shows that consumers have changed their purchasing behavior due to declining purchasing power. And if you look at Christmas, we see a mixed picture emerging.’
According to Hartendorf, a distinction can be made between people who clearly intend to spend less money at Christmas, or even not spend at all. “It’s mostly about buying Christmas presents, or eating out, Christmas decorations, and Christmas dinner at home,” she says. ‘This is less good news for many retailers.’
Striking result
A striking result of the study, however, Hartendorf points out, is the fact that the group of young people up to the age of 30 want to spend more. “We have not specifically investigated the reason, but we can imagine that Christmas has been celebrated in a limited way over the past two years due to corona. And that this group feels a great need to recover. That recovery expense is good for retailers.’
That, that is not
According to Hartendorf, there’s also a trend where stores are doing better than others. “There’s a difference between the type of expense and the type of retailer,” she continues. ‘As consumers have become more aware of buying behavior, major purchases such as furniture and electronics are being deferred. Groceries, on the other hand, are essential expenses, so people are more likely to seek deals there. This reduces loyalty to certain retailers, just like specialty stores.’
Hartendorf refers to the butcher, greengrocer or baker on the corner. “They became popular during the corona virus, but now they are having a hard time.” However, there is a “little bright spot,” she thinks. “Consumers indicate they will make an exception for Christmas, to a limited extent.”