Shoppers opting to pay with cash

Nov 24 2008 by Henryk Zientek, Huddersfield Daily Examiner

SHOPPERS in Yorkshire are favouring cash over credit cards to pay for Christmas gifts and food, a report said on Saturday.

A survey by business advisory firm Deloitte showed that 75% of people polled would be paying by cash with only 12% opting to use a credit card.

When it comes to saving for Christmas, the thriftiness of Yorkshire people comes to the fore with 54% saying they prefer to save in the bank against 46% who don’t save at all.

Across the UK, men appear to be the biggest drivers of the credit card cutback, with 12% intending to fund Christmas by credit card, compared to 19% last year.

Women’s spending habits remain largely unchanged with 12% using cards this year compared with 13% in 2007.

Nicola Frampton, retail director for Deloitte, said: “The current loss of consumer confidence in the economy has resulted in a resurgence of the more traditional saving methods among some consumers.

“This could translate into a wider adoption of shopping saving schemes such as loyalty cards and Christmas clubs. This presents an opportunity for retailers to engage with their consumers and reward loyalty.”

A separate survey by Deloitte showed that 59% of consumers plan to spend about the same on Christmas this year as they did last year while 29% say they are cutting back.

Some 43% said they would buy presents on the internet.