NI shoppers start Christmas early as families spread festive costs

One in four Northern Ireland shoppers had already started buying for Christmas by the middle of August, almost double the UK average, as households look to spread the cost of the festive season.

New research from PwC shows Northern Ireland is leading the UK for early Christmas shopping, but the head start comes against a much tougher financial backdrop, with only three in ten local adults describing their household finances as “healthy”.

The findings suggest many shoppers are getting organised early not because they intend to spend more, but because household budgets remain under pressure and families are looking to spread purchases across a longer period.

Northern Ireland leads UK for early Christmas shopping

A quarter (25%) of Northern Ireland consumers told PwC they had already begun their Christmas shopping by mid-August — the highest proportion of any UK region and almost double the UK-wide figure of 14%.

Northern Ireland shoppers are also the least likely to say they will leave their shopping until later than usual. Just 2% plan to do so, compared with a UK average of 4%.

But getting an early start does not mean shoppers here are preparing to splash out. Instead, the figures point towards a particularly cautious Christmas for Northern Ireland households.

More plan to spend less this Christmas

Almost one third (31%) of Northern Ireland consumers expect to spend less on Christmas shopping and celebrations this year, while only 22% intend to spend more.

That produces a net spending intention of –9%, the most negative of any UK region. Across the UK as a whole, 25% plan to spend more and 21% less, giving a positive net balance of +4%.

The 13 percentage point gap between Northern Ireland and the UK-wide balance underlines the contrast: shoppers here may be starting earlier than anywhere else, but they are also approaching Christmas with considerably greater caution.

Only three in ten say finances are healthy

The reasons behind that caution become clearer in PwC’s wider findings on household finances.

Four in ten Northern Ireland consumers say they are worse off than they were a year ago, while only 30% describe their finances as healthy enough to have money remaining at the end of each month.

Cost-of-living pressures remain widespread, with 83% concerned about rising everyday costs.

There are, however, signs that some financial anxieties are easing. Concern about job security among Northern Ireland consumers has fallen to 30%, from 36% in January, while concern about rising mortgage or rental costs has dropped to 42%, down from a spring peak of 48%.

Consumer confidence rebounds from April slump

The Northern Ireland findings come as the wider UK picture has improved markedly since the spring.

PwC’s Consumer Sentiment Index recorded a score of +1 in August, recovering from –13 in April when concerns about household finances had helped produce the sharpest quarterly fall in sentiment in four years. PwC’s April research found eight in ten UK consumers were planning short-term spending cutbacks.

The latest +1 reading is also two points higher than January and represents the highest level of UK consumer confidence in five years.

The rebound is significant because consumer sentiment can influence whether households feel comfortable spending on discretionary purchases — particularly important as shops, restaurants and hospitality businesses approach the crucial final months of the year.

A crucial Christmas for retailers

Alison Blair, Managing Director of Research at PwC Northern Ireland, said the figures present an unusual picture as businesses approach the retail sector’s important “Golden Quarter”.

“Northern Ireland presents a fascinating picture as we head into the retail sector’s ‘Golden Quarter’. Shoppers here are getting ahead of the curve, with more people starting their Christmas shopping than anywhere else in the UK. But they’re doing so out of necessity as much as enthusiasm, spreading costs over a longer period and keeping a close eye on household budgets.

“For retailers and hospitality businesses, the opportunity is clear. Consumers are engaged and planning ahead, but they’re also discerning. Those that can combine strong value, timely offers and a compelling customer experience will be best placed to capture spending in the months ahead.”

There is precedent for households using an early start to make Christmas more manageable. PwC’s 2024 research similarly found shoppers beginning earlier to spread festive purchases across multiple paydays and take advantage of discount events, while the rising cost of living was the leading reason given by those planning to spend less.

For retailers across Northern Ireland, the latest figures point towards a Christmas in which shoppers are engaged and already spending, but value is likely to matter heavily. The challenge will be winning a share of festive budgets that many households are planning more carefully — and, in almost one in three cases, intend to reduce.