UK | The latest consumer insight from Asda reveals that shoppers are feeling more optimistic about the festive season as UK households' financial pressures ease.
The supermarket’s latest Income Tracker reveals that average household disposable income increased by 12 percent year-on-year in October, the fastest growth rate over two years.
In tangible terms, the average UK household was £23.04 per week better off in October than a year earlier. Notably, this marks the first time in more than two years that all households had some disposable income left after paying bills and essentials at the end of the month.
The rise in household disposable income stems from continued annual wage growth and a sharp deceleration in inflation, driven predominantly by notable falls in gas and electricity prices compared to the previous year.
The improvement in household finances has been accompanied by increased consumer optimism about Christmas. More than a quarter (27 percent) of consumers who took part in Asda’s latest consumer survey said they were excited about Christmas, compared to just 18 percent last year.
Despite increased excitement about Christmas, many shoppers still decide whether to buy festive gifts because they believe better deals will be available closer to Christmas. This time last year, 40 percent of shoppers had already started their festive shopping, whereas this year, just 30 percent have begun gift hunting.
With less than five weeks until Christmas, Asda’s preparations are in full swing. The supermarket has launched 275 new festive lines, several of which have scooped prestigious quality awards in the Good Housekeeping and BBC Good Food taste tests.
The supermarket is also focussed on making Christmas affordable for all customers and has launched a frozen Christmas dinner for six that costs £25. This works out at £4.17 per head, and all the products featured are cheaper than last year by an average of 8 percent.
To provide an extra festive spending boost, Asda is giving more than a million customers who use its Asda Reward app a cash bonus of up to £5 later this month for saving money in their Christmas Saver Cashpots.
Asda also offers people aged 60 and over the chance to enjoy soup, a roll, unlimited tea, and coffee for just £1 in any of Asda’s 205 cafes until the end of February.
The retailer first launched Winter Warmers in November 2022 for two months to support older customers disproportionately affected by the spiralling living costs and has since served over 650,000 £1 soup meals.
