Electronics retailer Dixons reported that sales were much slower than it expected, confirming recent surveys suggesting that British consumers held on to their money in the run-up to Christmas.

Earlier this week, clothing group Alexon said its sales over Christmas and the New Year were 2% higher than a year ago, but down from a year-on-year increase of 15% in 2001.

The slowdown has been blamed on consumer fears over a weaker economy and a possible war with Iraq.

Did you spend less over the Christmas and New Year period? Why do you think people are spending less?

This debate is now closed. Read a selection of your comments below.

Your reaction

If you don't have the cash don't buy it! Paddy Healy, Hong Kong

I live in Hong Kong, but I am British. Having been back to the UK recently I was shocked to discover how many people were in massive consumer debt, mainly with credit cards. This explains it all really! Here in Hong Kong as the saying goes 'No money, no talk'. If you don't have the cash don't buy it!
Paddy Healy, Hong Kong

I spent less this Christmas than I expected to, but the gifts I bought were just as good. I think generally the price of items is coming down, if you know where to look. Perhaps due to more competition in the high streets?
James Hardaker, England

My partner and I dropped out of the Christmas rat race 3 years ago. No presents for ourselves, just a card. Christmas time is far more relaxing and a lot less stressful now.
Huw, UK

Like others here, I realised that we had more than enough "stuff" already and buying more wasn't going to make the holiday or our lives any better. Food and fellowship is a much nicer way to celebrate.
Lisa, UK

I am fed up with being ripped off by the usual high street culprits Jill Whittle, UK

I too am fed up with being ripped off by the usual high street culprits charging outrageous prices for the same, tired old goods. This year we decided to have a present-free Christmas and buy the things we really needed after the event. We didn't even bother eating out/going out for a drink since we feel our custom is taken for granted, with proprietors paying no attention to giving the customer a reasonable deal, at a reasonable price and with service with a smile for once!
Jill Whittle, UK

I did not do much Christmas shopping before 25 December, but I bought loads of things I could keep as presents for later during the sales period. I refuse to pay the usual retail price which is unjustified most of the time.
Celine, UK

I spent absolutely nil this Christmas. I am one of the IT workers who did lose their job in 2002 and have found it impossible to find any work in any sector. I am sure I am not alone, if you take out of the economy my usual monthly spending - and this is being repeated by all the 'unofficially' unemployed - the economy is bound to suffer, not to mention the long term prospects of the UK.
Joe, uk

The only reason that shops like Dixons had reduced sales margins in the run-up to Christmas is because people realise that they can get products cheaper on the internet, and you don't have the undue pressure of someone forcing overpriced extended warranties on top of the purchase. At least you can choose one if you want in your own time.
Dom, UK

I spent as little as I could possibly get away with. I especially snap the purse strings shut when in the vicinity of stores that will inevitably offer massive 50% discounts a mere two weeks later. The high street stores are unscrupulous, greedy organisations that mutilate the 'real' Christmas spirit by blatant abuse of their trusting consumers. I feel absolutely no sympathy for them at all. I prefer to spend my money at craft markets.
Sean Hammon, Brussels, Belgium

We cannot afford a huge expense like Christmas all in one go Hannah, UK

We spent less, not because of the economy or anything like that but because my partner lost his job. We always buy little bits over the whole year because we cannot afford a huge expense like Christmas all in one go and have discovered in the past that if we go to a fair or show and see something that someone would love the best thing to do is buy it and store it (unless it's perishable) because we will never ever find another one again.
Hannah, UK

The absurdly high general cost of living in the UK compared to the rest of Europe - this coupled with job insecurity and a mortgage - provided reason enough to be careful with my spending this year.
LD, UK

Dixons will suffer due to more people purchasing electrical goods online. A lot of high street chains will feel this pressure unless they change the way they sell and encompass this new technology.
Bob, UK

Most of my money went on increased taxes Jess, UK

Most of my money this year went on increased taxes (car tax, fuel tax, increased car/house insurance) and saving for the hard year that 2003 will be with yet more increased taxes (NI increases, petrol increases and so on).
Jess, UK

Whilst I probably spent less on most relatives, I spent more on both my partner and Gran as I knew that they both needed specific items. I certainly haven't spent much in the sales; the jumble sale environment of the sales is incredibly off-putting.
Marie, UK

Having suffered from large credit card bills in the past we cut them all up last year and now only spend what we can afford. It was a bit tough this Christmas but it focused my mind on what's really important. It's just so nice not to be in debt any more.
Kate Priestley, England

As a family we all stuck to a price limit on presents this year, simply to stop the out-of-control spending that always seems to go on at Christmas. People are much more mercenary nowadays, knowing that the sales will allow you to have much more for your money even less than a week after Christmas. After all, why spend �200 on an item you know will likely be 50% off in a couple of days?
Paul Charters, England

We decided that we had enough already! Berni, UK

My wife and I decided to forgo buying each other anything this year as we are moving in mid-January and, as a result, realised how many possessions we already have. We decided that we had enough already!
Berni, UK

We bought not one Christmas present this year, nor any form of alcohol. As a single parent on incapacity benefit with a son at university we even had a few days with no food left. I have managed alone for 20 years, yet this year it was impossible.
Eileen, UK

People are more wary of spending today. 'Rip off Britain' says it all. Whenever anyone makes a purchase they feel they are getting conned or ripped off, so wariness is high and easy spending is down. I wonder if there is the same feeling of wariness in the USA and other countries in Europe.
Yna M, UK

We did spend less this year - but it had very little to do with the economy or any other outside factors. We just looked at the number of toys our children already had (after having made numerous trips to charity shops with unwanted toys), and took into account the fact that family members would be buying for them also - and decided to not go overboard this year. The result was a much more relaxed and enjoyable day. I must admit, I do not understand why a war with Iraq would cause people to cut back at Christmas. I don't see the link (but I'm sure it is there!)
JB, UK

We bought less, but spent more Steve T, England

I wish! We bought less, but spent more. Our major expense was due to our buying our eldest his first Moped. If you take that out, we did indeed spend less. We have not spent a penny in the sales, mostly because there is nothing worth buying! I cannot for the life of me understand why people feel the need to shop till you drop, all day and everyday!
Steve T, England

We spent a lot less this year because we feel that Christmas is over hyped and the pressure to buy "bigger, better, more" is far too strong. We put a lot of thought into presents this year and feel that they were more appreciated than lots of stuff that people don't really want or need. Money can't buy everything remember!
Lynda, UK

I did all my Christmas shopping online, and found loads of bargains, so although I spent less, I actually bought more. About half of my shopping was done at overseas websites, and I imagine that a lot of other people would have done the same thing, so surely this would also have some bearing on the statistics.
Stephen, UK

I spent much less this year because I could lose my job at any time (I'm in IT in the city, not the most secure job at the moment). As to why others spent less, it's probably either their credit cards are maxed out or they are worried about their jobs as well or have already lost them. Thousands have been made redundant over the last year and this has an impact, even though the government finds ways to keep them off the "official" unemployment figures.
Simon, UK

I think people are becoming more and more aware of the fact that Christmas has become a vehicle for the capitalists to pocket heavily on the spirit of giving and goodwill. Whilst Christmas should be a time of reflection and a time revaluate our values and morals (which Christ himself would have like it spent), instead we are driven to express our love and compassion for one another through material goods, heightening the sense of commercialism and benefiting only the capitalists. You've probably guessed that my spending was kept to the bare minimum this Christmas.
R, UK