Swiss consumers spend as much on Christmas gifts as last year and increasingly prefer shopping locally

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• Swiss consumers are spending an average of 282 Swiss francs this year – the same amount as last year, but over 20% less than in 2022.
• More than half (51%) of the surveyed consumers say they are reducing their spending on Christmas gifts due to the high cost of living.
• Online shopping has seen a decline in its expected market share to 37%, while shopping centers and department stores have significantly increased their expected market share to 29%.
• For 70%, sustainability is also important when shopping for Christmas - regardless of age and income.

Zurich, Bern, 5 December 2024 – The annual Christmas survey by the auditing and consulting firm EY in Switzerland and the SWISS RETAIL FEDERATION, the umbrella organization of the Swiss retail industry, shows that spending on Christmas gifts is stagnating compared to the previous year: As in 2023, Swiss consumers plan to spend 282 Swiss francs per capita on Christmas gifts. In 2022, a record average of 343 Swiss francs per capita was reached. The budget for Christmas gifts for men slightly decreased from 304 francs last year to 298 francs. For women, there was a slight increase from 266 francs to 268 francs per capita. The survey was conducted in November and December among over 750 adult consumers in Switzerland.

Price levels and other factors lead to cautious spending

More than half (51%) of the surveyed consumers in Switzerland say they will "slightly" or even "significantly" reduce their spending on Christmas gifts this year due to the currently high price levels and living costs, especially for health insurance and rent. About one in six (18%) plans a "significant reduction" in their gift budget. Additionally, 45% of respondents plan to spend the same amount as last Christmas. Only 4% of consumers plan to increase their spending. As in the previous year, women are particularly likely to express their intention to save: 58% of female consumers say they want to reduce their spending on Christmas gifts due to the relatively high cost of living, compared to 43% of men. André Bieri, Markets Leader Switzerland at EY in Switzerland, explains: "Despite lower inflation in Switzerland, consumers perceive the prices of consumer goods as high, likely also due to the stagnant overall budget, which is burdened by higher health and rental costs. The uncertain geopolitical situation also has an additional negative effect on consumer behavior, making consumers cautious with their Christmas spending." This expert assessment is also reflected in the respondents' statements: 47% of them perceive strong or very strong effects of inflation and rising health and housing costs. Only 6% say these factors have no noticeable effect. Accordingly, consumers in Switzerland are reacting: one in ten respondents (10%) only buys the essentials, and another 17% significantly restrict their shopping. For 36%, the mentioned reasons have a moderate effect on their behavior; they restrict themselves but occasionally treat themselves to something special. For 22%, the reasons have a minor impact on their behavior; they pay more attention to prices and occasionally forgo purchases. A total of 15% of consumers say they do not change their behavior. Looking at the generations, an ambivalent picture emerges: the least affected are respondents up to 35 years old. They want to spend 21% more money than last year. In contrast, the 36-45-year-olds want to cut their budget by 16%. The other generations remain constant: 46-55-year-olds increase their budget by 3%, 56-65-year-olds reduce it by 5%, and respondents over 66 years old spend 3% more. Dagmar Jenni, Director of the SWISS RETAIL FEDERATION, notes: "Young people seem to be looking to the future with greater confidence again, which is also reflected in their shopping intentions. On the other hand, we see greater restraint among the 36-45-year-olds, so unfortunately, it is not yet enough for a turnaround in consumer sentiment."

The most common gifts under the Christmas tree

The most popular gifts this year again include well-known categories: gift vouchers/money remain the most popular Christmas gift in Switzerland with 41% (previous year: 37%). Toys are in second place with 35% (2023: 36%), followed by clothing with 32% (2023: 31%). Other categories include food/sweets with 31%, printed books with 26%, and cosmetics with 25%. André Bieri says: "This ranking and the renewed increase in gift vouchers confirm the trend of recent years that useful and sustainable gifts are being made, or items for everyday use and necessary purchases are being given. Money gifts, with which recipients can buy something they need or want, have been in first place for years." Swiss consumers are again investing the highest amounts in gift vouchers/money and toys this year: the average spending for these is expected to be 53 francs (gift vouchers/money) and 43 francs (toys). Clothing (28 francs) and food/sweets (26 francs) follow in third and fourth place. The most significant budget cuts compared to 2023 are in food/sweets (minus 8 francs), while significantly higher spending is expected in the categories of gift vouchers and travel (plus 5 francs each).

A look at individual gift budgets

Most surveyed consumers (20%) plan to spend between 101 and 200 francs on gifts. However, 17% budget between 301 and 500 francs for their purchases, 15% reserve between 201 and 250 francs and 251 to 300 francs each. And 13% plan to spend 50 to 100 francs on gifts. Overall, 80% of respondents plan to spend between 50 and 500 francs, 8% have no more than 50 francs for gifts. And 12% of respondents plan to spend more than 500 francs – last year, this proportion was 13%. As in the previous year, 3% plan to spend more than 1000 francs.

Online retail declines – shopping centers and department stores catch up significantly

Regarding distribution channels, there is a significant shift in favor of shopping centers and department stores this year: online retail still achieves the largest expected market share but has to accept a decline of 4% and reaches a market share of 37% this year. Shopping centers and department stores are in second place with a significantly increased market share of 29% (previous year: 23%). Specialty stores achieve an expected market share of 21% (previous year: 23%). Swiss consumers plan to spend 104 francs in online retail (previous year: 116 francs). In shopping centers and department stores, respondents plan to spend 83 francs (previous year: 66 francs), and 60 francs in specialty stores (previous year: 64 francs). Dagmar Jenni comments: "The strengthening of brick-and-mortar retail compared to online retail has multiple reasons: on the one hand, the survey shows that the Christmas shopping experience is more appreciated again. On the other hand, we still notice a certain return effect after the COVID-19 pandemic towards more personal contact." The expected market shares are also reflected in the respondents' answers: 42% of them say they prefer to shop at local retailers (previous year: 40%), 25% prioritize online shopping (previous year: 30%), and 33% have no preference (previous year: 30%). When choosing to shop online, nearly two-thirds of respondents (62%) visit online marketplaces, and a little more than a third shop through online stores (36%).

Sustainability remains important in shopping

Interest in and consideration of sustainability aspects have increased again compared to 2023. 70% of surveyed consumers in Switzerland say that sustainability aspects play at least a minor role in their gift-giving and Christmas celebrations this year (previous year: 63%), and for nearly a quarter of respondents (23%), they play a significant role (previous year: 18%). Women (74%) continue to consider sustainability aspects significantly more often than men (64%). Sustainability is becoming an intergenerational topic: in each surveyed generation, at least 64% say that sustainability plays a role. Sustainability is most important to respondents over 66 years old (78%), followed by people aged 36 to 45. Among them, 73% pay attention to sustainability when shopping for Christmas.

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