31% of British shoppers are planning to cut back on Christmas spending this year as the cost-of-living crisis takes its toll on disposable income, according to a survey of 1,000 people carried out by brand research agency Hall & Partners.

Presents are the first thing consumers are looking to save money on, with 39% saying they can’t afford to spend as much on gifts this Christmas. Instead, nearly half of all shoppers, 46%, are going to prioritise experience over gifts as they look forward to catching up with friends and family over the festive season.

Traditionally, Black Friday deals are deployed by retailers to persuade cautious shoppers to loosen their purse strings but, this year, there’s a clear cynicism to promotions.

Among those spending less on Christmas this year, one in five now believe Black Friday sales do not represent good value. Just 4% of cost cutting consumers believe deals always offer good value.

People are a little more trusting in general deals and promotions, but only just. Of those cutting back, only one in four think promotions can be good deals and 10% are convinced they do not represent good value.

When it comes to paying for Christmas this year, 37% will use disposable income while 29% tell us they will use savings. The cost of Christmas will be spread over several months by 12% of consumers relying on using credit cards and 10% by using buy now pay later. 

Farid Jeeawody, Senior Vice President at Hall & Partners, says: “People still believe in the joy of Christmas, but the magic of Black Friday deals is starting to lose its sparkle. At a time when consumers are cutting back on gifting and prioritising experiences there is a huge opportunity to tap into the emotions that brand experiences can create."

“Experience led categories such as travel and entertainment, we believe, are the most resilient to cost-cutting because they bring consumers something to look forward to and offer shared joy. Brands can learn from this and double down on the physical and digital experiences that bring connection, joy and value to consumers such as an immersive product experience, combining food and drink for a themed meal or an online digital advent calendar.”

2026 RTIH Innovation Awards

Payments was a key focus area at the 2026 RTIH Innovation Awards.

Check out our winners here.

The awards celebrate global retail technology innovation in a fast moving omnichannel world. Our winners were revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

The event consisted of a drinks reception, three course meal, awards ceremony presided over by award winning stand-up comedian, presenter, actor and broadcaster, Aurie Styla, and after party until 1am.