Why Britain’s busy Christmas shopping season hides a more cautious consumer

Visit any high street in the run-up to Christmas and you’d be forgiven for thinking the downturn never arrived. Shops are packed, tills are ringing and there is a genuine sense of seasonal joy in the air. But beneath the bustle, UK consumers are making far more calculated decisions than the crowds might suggest.

According to new Deloitte ConsumerSignals research, around one in three UK consumers plan to spend more this Christmas than last year, a figure that stands out against the rest of Europe, where fewer than a quarter (23 percent) say the same. On the surface, this suggests resilience. In reality, it reflects a delicate balancing act between festive aspiration and economic pressure.

Spending more, not necessarily by choice

The headline figure masks an important nuance: spending more does not automatically mean feeling better off. Among UK consumers who expect to increase their Christmas spend, a 33 percent say higher prices are the main reason. Inflation, rather than indulgence, is doing much of the heavy lifting.

Only 23 percent of those spending more say it is a deliberate decision to allocate a larger budget to Christmas, while 20 percent attribute the increase to an improved personal financial situation. In other words, genuine confidence exists, but it is far from universal.

Still, there is emotional commitment to the season. Almost half of UK consumers, 44 percent, say they have enough money to create a joyful Christmas for themselves and their families. That sense of “making it work” may explain why the festive period continues to feel buoyant, even as costs remain elevated. A generational split in festive confidence

Age is one of the clearest fault lines in this year’s Christmas outlook. UK consumers aged 18 to 34 are nearly twice as likely to spend more than older age groups, reinforcing the idea that younger shoppers are driving much of the visible momentum on the high street.

This is not necessarily because they feel immune to economic pressures, but because priorities differ. Younger consumers are more willing to spend selectively, lean into tools that reduce friction, and seek out moments of joy, even if that means spending strategically elsewhere.

By contrast, restraint is more pronounced among older demographics. Overall, just 18 percent of UK consumers plan to spend less this Christmas, but among those who are cutting back, nearly half (48 percent) cite the cost of living, and 37 percent say their financial situation has worsened.

What consumers will sacrifice

When budgets tighten, not all categories are treated equally. Deloitte’s research shows consumers are most likely to cut back on experiences such as restaurants or events, as well as clothing. These are discretionary areas where postponement feels manageable.

What they are less willing to sacrifice are gift vouchers, hosting at home, and home décor or seasonal items. Christmas, it seems, is increasingly about the domestic sphere, creating atmosphere, maintaining rituals and preserving generosity, even if other forms of spending fall away.

This shift matters for retailers. Categories linked to home, gifting and small indulgences may continue to outperform more experiential or fashion-led purchases, particularly as consumers look for tangible value and emotional return.

Festive stress

Despite the outward cheer, Christmas remains a pressure point. A third of UK consumers find Christmas shopping stressful while 29 percent say the festive period as a whole causes stress. This rises to 38 percent among consumers aged 35 to 54, suggesting that responsibility, rather than enthusiasm, is a key driver of festive fatigue.

To cope, shoppers are increasingly outsourcing decisions. One in five UK consumers (20 percent) plan to use generative AI tools to help with Christmas shopping, a figure that jumps to 42 percent among 18 to 34-year-olds and drops sharply to just 4 percent among those over 55.

Influencers show a similar generational divide. More than a third (38 percent) of younger consumers will turn to influencers for festive shopping inspiration, compared with just 2 percent of over-55s. Discovery, curation and reassurance are becoming as important as price.

Pragmatic joy

As Cande Cooper, retail partner at Deloitte UK, notes, there is “a strong desire among many UK consumers to create and spread joy this Christmas,” but it is paired with pragmatism. Shoppers are carefully balancing budgets, responding to high costs with selectivity rather than retreat.

For retailers, this creates a dual challenge. Promotions will still matter, particularly for price-sensitive consumers, but they must sit alongside compelling quality, clear value propositions and smoother decision-making journeys. The growing role of GenAI, influencers and digital tools signals that how consumers shop is changing just as much as how much they spend.

This Christmas may look healthy from the outside. The data suggests it is, but only because consumers are working harder than ever to make it so.

About the research: The findings are drawn from Deloitte’s latest ConsumerSignals research, based on survey data from 1,000 consumers aged 18+ per country across several European markets, including France, Germany, Italy, the Netherlands, Portugal, Spain and the UK. The analysis compares expected Christmas spending, reasons for spending more or less, stress levels and the use of digital tools in shopping.