Back to basics for festive spending

SOUTH Africa’s middle- and higher-income consumers plan to spend 34 percent more this Christmas than they did last year, according to a new survey.

The Acentric Christmas Shopping Intentions Survey 2014 found that most of the spending will be on food, clothing and alcohol.

“We can expect most of the spend to come from younger shoppers, as those over 50 are far less likely to purchase in the coming weeks,” said Craig Kolb of Acentric Marketing Research.

The survey says shoppers have a more practical focus. Food and mainstream clothing are top items, along with alcohol.

In comparison to the US, South Africans rather focus on essentials than luxuries.

In terms of the types of items that shoppers are interested in purchasing, food leads the way with 55 percent intending to purchase Christmas-related foods, followed by toys (48 percent) and mainstream clothing and accessories (41 percent).

Neil Roets, chief executive of Debt Rescue, said consumers relied on credit to buy gifts rather than using cash because they did not plan ahead when it came to buying gifts and this put pressure on household debt after the festive season.

“We always advise people to plan ahead and to include money for that time on their budgets,” Roets said. “The most important thing is to budget and to determine what they will be able to afford.

“Almost all credit-active consumers are over-indebted, meaning they are at risk with at least three payments on one of their accounts. So a lot of people find themselves on the edge. Acquiring more debt through buying new credit can push them over the edge.” – Staff Reporter