The latest insights (carried out across 1,000 UK shoppers) from leading retail and shopper marketing agency, Savvy, has today revealed a cautious yet resilient consumer mindset as households prepare for their final weeks of Christmas spending. Although the UK has moved beyond the peak of the cost-of-living crisis, the research highlights how many families are continuing to feel financial strain.
Against a backdrop of fragile consumer confidence and uncertainty following the recent Budget, UK shoppers are working hard to make their money go further. Record Black Friday engagement shows how shoppers are responding to value and using deals, planning earlier and drawing on their loyalty point balances to help make Christmas special.
A big shift we’ve see this year is the growing influence of AI in the festive shopping experience. One in four shoppers are now using AI chatbots for inspiration this Christmas – rising to half of 18 to 34 year olds. With the major AI firms integrating commerce into their platforms, this will be a key trend to watch in 2026.
– Catherine Shutttleworth, CEO, Savvy
Budget management and cost-spreading
Shoppers are adopting a more strategic approach to festive budgeting, with 40% having delayed purchases until Black Friday to secure better value. A further 39% intend to delay some gift buying until the final couple of weeks before Christmas, anticipating further retailer discounts.
Spreading the cost of Christmas gifts over a longer period than usual was the newly adopted strategy for nearly two-thirds of shoppers (62%), while an even greater share (64%) planned to use accumulated retailer loyalty points to help fund their celebrations this year. A significant 59% of shoppers said they were open to using cost-spreading tools such as buy now, pay later services such as Clearpay and Klarna, to manage the financial load.
Cutbacks and spending priorities
Despite careful planning, more than half of shoppers still expect to reduce their festive spending, with 55% anticipating cutbacks on gifts and 52% on food and drink. The figures indicate that although confidence is improving, caution remains firmly embedded in household decision-making.
Gifting choices and inspiration
Shoppers continue to prioritise meaningful, personalised and responsible gifting. One in four plan to use AI tools to help identify presents, rising to 50% among adults aged 18-34, demonstrating the growing role of technology in shaping festive choices.
Over a third (36%) expect to buy personalised gifts, while sustainability remains front of mind for 53% of respondents who aim to choose eco-friendly options where possible. Sixty percent say they would prefer to buy from smaller or local retailers, reinforcing the appeal of authenticity and community connection in gifting.
The role of social media
Social platforms continue to compete strongly with traditional media for influence, with thirty-eight percent of shoppers citing social media as the best place for Christmas ideas. The same proportion were likely to purchase something they see in their feed. TikTok’s influence was particularly notable: 31% of all shoppers (rising to 63% of those aged 18-34) expect the platform to shape what they buy or do this Christmas.
Where shoppers plan to do their main Christmas food shop
When it comes to the all-important Christmas food shop, the research indicated that Tesco is leading – with 32% of shoppers planning to buy their main shop there, followed by Sainsbury’s (16%), Aldi (13%), Asda (12%) and Lidl (7%). M&S Food attracts 5% of shoppers, Morrisons 8%, and Waitrose 2%.
In welcome news for the embattled hospitality sector, a third (33%) of shoppers expect to visit pubs and restaurants more often than they did last Christmas.
