The FINANCIAL — The Christmas period is a ‘make or break’ time for retailers and their supply chain, with sales made in November and December having a disproportionate impact on their performance for the year. Last year, for example, total spending over the Christmas period in the major Western economies amounted to around $445 billion. But who are the big spenders?
Based on average spending per person over the Christmas period, the 2013 results show that Ireland tops the league, with spending of around $1,200 per person, according to PricewaterhouseCoopers, a multinational professional services network. Of the major Western economies, the UK leads the way, spending around a third per person more than shoppers in the US. Of the Eurozone countries included in the sample, French Christmas spending per person is second to Ireland, followed by Germany and Italy.
What about emerging markets? PwC’s analysis includes the two biggest emerging markets that celebrate Christmas, Brazil and Russia and shows that per person spending over the Christmas period in these countries is relatively low. But when looking at total spending over the Christmas period, Brazil and Russia rank in the Top 10. This is because they are homes for a large number of consumers, even though individual spending might be comparatively low.
A closer analysis of Christmas spending per person shows that the financial crisis is still having an impact. “Some of the scars of the financial crisis are still visible in Christmas spending habits: US Christmas spending remains 10% behind that of 2007 in real terms. In Greece, real per person Christmas spending dropped by around 60% overall in the six years to 2013,” said Richard Boxshall, PwC senior economist. Spanish and Portuguese real Christmas spending per person also remains significantly below 2007 levels.
The UK and Germany are the only major Western economies where Christmas spending has bounced back to exceed pre-crisis levels in real terms, according to PwC.
“Shoppers of the UK and Germany are determined to have themselves a merry little Christmas,” Boxshall added.
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