Inflation and rising energy costs will depress spending around the upcoming Sinterklaas and Christmas celebrations, hitting the sale of clothes, toys and games in particular, economists say.
Some 40% of people in a new Q&A survey said they expected to spend significantly less in the weeks ahead. Women, in particular are keeping a tight grip on the purse strings, the survey showed.
A third of the respondents, particularly those on lower incomes, said they worried about their ability to cope financially and would cut down on presents. Just 11% of the 1,200 people in the survey said they would spend more this year than in 2021 and 49% said their budgets remained the same.
Families are, nevertheless, getting less for their money, ABN Amro retail specialist Henk Hofstede told the AD. ‘Many consumers will experiencing the money doesn’t go as far as it used to and will be more careful,’ he told the paper.
Three quarters of the respondents said they would be looking to save on festive food as well. Over half said they would pay more attention to bargains while 29% and 28% respectively said they would switch to cheaper own brand products and shop at cheaper supermarkets.
The amount of money people are willing to spend on clothes and shoes went down by 24%, the largest drop for all consumer goods. Toys and games fell by 18% and 17% respectively.
However, most sectors will be faced with a fall in seasonal consumer spending, Hofstede said. ‘We expect most retailers to suffer although the differences are significant. It is only the supermarkets that still show growth.’
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