Businesses owners believe uncertainty over economy and rising bills are forcing families to buy cheaper presents this festive season.
Cardiff businesses fear another year of downbeat sales as shoppers remain cautious of buying big presents this Christmas.
Business owners said rising bills coupled with looming uncertainty over the economy are forcing families to buy cheaper presents and there has been no improvement in consumer spending since pandemic.
“People are worried about their bills and everything else that is happening now,” said Val Elvis, 70, who works on a liquor stall in Cardiff Christmas Market. “They do not know what is going to happen next year and that is the problem. We have been coming here for the last 20 years, but the last few years have been the worst for business.”
Steven Flower, 60, has set up a brownie shop in City Centre and said the lack of enthusiasm over Christmas shopping exists across South Wales.
“People are careful about what they spend their money on and who can blame them? I have been coming to Cardiff since before the pandemic. Ever since Covid, things have gone worse and I can tell you, it is the same situation across South Wales.”
Latest figures show that in October 2024, prices in the UK went up by 2.3%. This is significantly lower than 2022 when the inflation was into double digits, due to Covid-19 pandemic and Russian invasion of Ukraine, but shoppers are still wary of spending money on Christmas.
Trade association British Retail Consortium (BRC) recently said that the consumer confidence continues to remain weak this festive season and the public expect the economy to decline.
Cheryl Cunliffe, 52, owner of a craft stall in City Centre, said declining confidence in economy means people are buying cheaper gifts.
“People are buying smaller and cheap things. They are doing secret Santa and buying stuff that cost around £5 or £6. I was making the same money last year as I am making this year so. It is supposed to go up, but it has remained the same.”