Asda’s latest Income Tracker suggests shoppers are feeling more optimistic about the festive season as the financial pressures facing households start to ease.
The tracker reveals that average household disposable income increased by 12% year-on-year in October, the fastest rate of growth in more than two years.
In tangible terms, the average UK household was £23.04 per week better off in October compared to a year earlier. Notably, this marks the first time in more than two years that all households had some disposable income left at the end of the month after paying bills and essentials.
The rise in household disposable income stems from continued annual wage growth and a sharp deceleration in inflation, driven predominantly by falls in gas and electricity prices compared to the previous year.
The improvement in household finances has been accompanied by an increase in consumer optimism about Christmas. More than a quarter (27%) of consumers who took part in Asda’s latest consumer survey said they were excited about Christmas, compared to just 18% last year.
Despite increased excitement about Christmas, the study found that many shoppers are wary of buying festive gifts now because they believe better deals will be on offer closer to Christmas. This time last year, 40% of shoppers had already started their festive shopping, whereas this year, just 30% have begun gift hunting.
NAM Implications:
- All we need is evidence in the aisle…
- ‘many shoppers are wary of buying festive gifts now because they believe better deals will be on offer closer to Christmas’
- i.e. they are betting on a bad retail Christmas!
