Shoppers more likely to spend like Scrooge this Christmas

This article is brought to you by Retail Technology Review: Shoppers more likely to spend like Scrooge this Christmas.

Eighty per cent of Britain will spend less on Christmas than they did last year, according to the latest research by the Institute of Customer Service (ICS).

Women will be guarding their purse strings more tightly than men, but all age groups, regions, incomes and professions in the survey have shown their concern over the economic downturn.

However 20 per cent said they would spend more during the festive season than a year ago, in the new Christmas spending poll of almost 12,000 people.

The trend of cutting back this Christmas has been confirmed by the ICS ahead of Chancellor Alistair Darlings pre-budget report, due out next Monday. (November 24).

The ICS believes that in an economic downturn, customer service is the battleground for consumer loyalty.

The research revealed 82.8 per cent of women were more likely to spend less than last year on Christmas, compared to 76.3 per cent for men.

The youngest age group in the survey were the most optimistic about spending, with 25.2 per cent of 16 to 24-year-olds saying they were likely to spend more than in 2007, compared to just 13.9 per cent in the 45 to 54-year-old age group.

Spending intentions were remarkably consistent across all income groups with the second highest earning group in the survey those with an income of 90,000-99,000 per year the most likely to spend less at 89.9 per cent. Those earning 80,000-89,999 were the group most likely to spend more this Christmas at just over 39 per cent.

By region, Northern Ireland was the most likely to spend less at 92.1 per cent, with the Midlands the most likely to spend more at close to 22 per cent.

David Parsons, ICS chief executive, says although the survey confirms many peoples fears about Christmas spending, he believes it is not all doom and gloom.

Christmas is the busiest time of the year for many businesses, so this trend will make for worrying reading, he said. People will still be buying presents for their loved ones, but with less money to spend they will be more careful where they shop, so it is important for retailers to ensure consumers want to visit their stores.

It is essential not to overlook the impact that excellent customer service can have, especially when staff everywhere are so busy. Getting the basics right of dealing with customers needs and priorities, are vital to survival this Christmas.

The results are part of the UK Customer Satisfaction Index (UKCSI), from the Institute of Customer Service, the unique national measure of customer satisfaction that shows how organisations are performing against others. Full results of the biannual UKCSI will be published in January.

Regional breakdown of spending intentions