• 43% of Scots say that they’ll be getting their Christmas shopping underway early this year
• Almost one third (29%) of shoppers in Scotland are set to spend less on celebrations compared with 2022
• PwC Consumer Sentiment remains stable at -13 from the summer survey
• Largest gap on record between the most and least affluent

One fifth (20%) of Scots have already got their Christmas shopping under way, according to figures from PwC UK.

The firm’s seasonal sentiment survey results indicate that almost half of consumers in Scotland (43%) will begin shopping for the festive season earlier than they did last year – as a further 23% say that they’ll begin stocking up early, despite not starting yet*.

The proportion of shoppers making a head start on their festive spending in Scotland is higher than the UK as a whole (26%). And while the majority of Scots are planning to spend the same amount of money on Christmas shopping and celebrations, 18% say they’ll be increasing their spending – with almost a third (29%) revealing they plan to cut back compared with last year.

Across the UK, 78% of respondents cited the rising cost of living as the main reason for tightening their expenditure.

Across the UK, the results are holding firm from the previous edition in the summer. Overall the -13 sentiment reading remains the highest point for 18 months and an improvement of over 30 points since the low of -44 in Autumn 2022, which was the worst score recorded since the global financial crisis in 2008.

Despite sentiment holding firm, the widest gap on record (52 ppts) now exists between the most and least affluent socioeconomic groups since the survey began. Sentiment is still improving amongst over 55s and the most affluent, but it is falling in every other demographic group, particularly sharply among under 25s and the least affluent.

Now 45-54 year olds expect to be the worst off across all age groups, with under 25s also dropping below 25-34 year olds. The trend for under 25s is unusually low for this time of year – autumn has historically seen a more positive trend as young people head into the world of work or education.

However, those under 35 do remain in net positive territory – as they have done historically – driven by more younger people living at home, being more likely to have benefitted from wage rises, less likely to have been affected by mortgage rate rises, and having more disposable income as a result.

Almost identical to the last consumer sentiment survey, the less affluent and 35-54 year olds remain under the greatest financial pressure, while retirees are the group reporting the most resilient household finances. For example, 44% of over 65s say they have money left at the end of the month for luxuries or to save, compared with 23% of 35-44 year olds.

Overall, just under a third of adults report that their household finances are ‘healthy’, a slight improvement on this time last year. At the other end of the scale, fewer than one in ten say they are either struggling to make ends meet or have missed bills or loan repayments. This number rises to 15% of 45-54 year olds, and to just under a quarter of the least affluent socioeconomic group.

With financial considerations in mind, consumers are shopping earlier than in previous years, and many are expecting to spend less on Christmas. Already one in five had started their Christmas shopping by mid-September, with more than one in three saying that they either have started their shopping or are planning to shop earlier this year.

However, only 18% of adults say they expect to spend more on shopping and celebrations this Christmas, with just over half saying they will spend the same as last year. That means that almost one in three adults say they expect to spend less this year, with the overwhelming reason being due to the rising cost of living: just under 80% of those who plan to spend less say it’s because of rising food and energy costs, compared with only 23% citing mortgage or rent payments.

Susannah Simpson, Partner at PwC Scotland, said: “It seems like Christmas has come early in Scotland. Shoppers are telling us they want to protect spending on family and special occasions in the face of increasing cost pressures, so it’s unsurprising to see that Scots are taking a more planned approach to festive spending as Christmas approaches. However, with nearly a third of adults telling us they plan to spend less than last year, it’s clear that challenges such as rising food and energy costs are having an impact.

“Overall, the level of stability in consumer sentiment is encouraging, as the -13 score has held since summer and is largely in line with the longer term average. What we are seeing is a divergence between age and incomes , with resilience more apparent in affluent groups and pressure being felt by those less affluent. This is something we’ve seen before, but the growing gap between the groups goes some way to demonstrate the varying spending priorities across key demographics.

“Whilst spending intention is negative across all categories, the sentiment is relatively better in the less discretionary areas of grocery, children, babies and pets. And in the context of some market challenges, the overall stability in sentiment will be welcomed by retailers ahead of the key selling period up to Christmas.”