Less money for gifts
Inflation depresses purchasing mood at Christmas
November 13, 2023, 8:40 a.m
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Economic crisis, inflation, uncertainty: the resulting general mood in Germany will also be noticeable when buying Christmas presents. According to a survey, consumers plan to spend less money than last year. Compared to the pre-pandemic period, the decline is significant.
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 those surveyed want to reduce their spending, more than one in four and even significantly, as shown in a self-reported representative survey by the consulting firm Ernst & Young (EY). For this purpose, more than 1,000 adults in Germany were surveyed by a market research institute at the end of October and beginning of November.
Consumers want to spend an average of 250 euros on Christmas presents this year, slightly less than last year (252 euros). For comparison: in 2021 the value was still 273 euros. At Christmas before the start of the corona pandemic, i.e. in 2019, it was 281 euros.
“The rapid price increases have made life more expensive and limited financial scope – gift budgets are suffering as a result,” said EY trading expert Michael Renz, according to the statement. The situation is becoming increasingly difficult for retailers. “If you also take inflation into account, we have to note a massive slump in gift budgets over the past three years and significant real losses in sales.”
According to Renz, the success of the Christmas business depends, as always, on the weather. “What is certain is that retailers have to make an enormous effort to encourage people to spend money,” said Renz. The retail expert assumed that the industry would try to counteract this with price reductions and discount campaigns. Ultimately, however, this is not a sustainable model of success.
According to the survey, gift vouchers and cash are likely to be the most common items under the Christmas tree this year too. This is followed by toys, food and confectionery, clothing and books.