Good news is forecast for the high street this Christmas as grocery spending is predicted increase from 0.2% to 3.0% year on year (YoY).
According to Mastercard SpendingPulse, overall holiday season retail spending in the UK is expected to be up 3.8% YoY, with the average amount spent on Christmas presents expected to be £336.34 per person.
But the study of 2,000 respondents found that two-thirds (66%) of consumers will only complete a purchase if discounted or part of a deal.
The research also revealed that online shopping will see the strongest sales growth (+11.1% YoY), while almost a fifth (19%) of consumers will tighten their purse strings until Black Friday (23 November) bargains are released.
Mastercard vice president of retail for UK and Ireland, Janne Karppinen, said: “Buying behaviour is shifting dramatically as shoppers’ expectations for discounts increase. Two-thirds of shoppers won’t buy a product if it isn’t discounted.
“Coupled with the fact that spending slows in the run up to mid-November, we can see that discounts are no longer seen as a ‘nice to have,’ they are demanded.”