Bank predicts Christmas spending to reach EUR 1.4 billion
Retailers predict just EUR 800 million in Christmas sales
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The Nordic banking concern Nordea predicts that Finns will spend a total of EUR 1.4 billion on Christmas presents this year.
The bank predicts that Finns will spend an average EUR 320 on Christmas gifts.
Nine Finns out of ten plan to buy Christmas gifts this year. Per capita Christmas gift spending is expected to be greatest in West Finland, where the average sum is expected to reach EUR 350, while people in the east of Finland can get by on EUR 289.
The Nordea study involved interviews with more than 1,000 people aged 16 to 78 in each of the Nordic Countries.
In Finland the biggest spenders, according to the Nordea study, are to be those aged 40 to 53, who expect to buy an average EUR 369 worth of Christmas gifts. The most frugal are in the 16-25 age bracket, who average just EUR 177.
The Norwegians have the biggest Christmas gift budgets, expecting to spend EUR 540 on average on Christmas shopping. The Danes planned to spend an average EUR 450, and the Swedes, just EUR 320.
"Norway is an expensive country with a high level of income", commented economist Tarja Svartström of Nordea, who specialises in household financing.
Merchants nevertheless take a more cautious view of the Nordea estimate. Guy Wires, managing director of the Federation of Finnish Commerce, notes that EUR 1.4 billion is about half of all retail sales for December.
The federation has drawn up a much more modest estimate of EUR 800 million, a figure which includes items such as Christmas decorations and food, which are not included in Nordea's figure.
Wires says that a better indication of this year's Christmas sales will come next weekend, which he expects to be a busy one. Tax refunds worth EUR 1.5 billion were paid out on Tuesday this week, which also has a stimulating effect on sales.
A study by Deloitte Research and the Swedish Research Institute of Trade (HUI) concluded that espresso machines would be the top-selling Christmas gifts this year in Finland, while in Sweden, there should be a surge in popularity for audio books.
Wires sharply disagrees, saying that this Christmas is shaping up to be the first real digital Christmas in Finland. "Digital decoders, MP3 players, and flat-screen televisions are overwhelming favourites", Wires says.
Nordea's Svartström urges consumers to be cautious with their spending. The bank has observed that 15 percent of shoppers buy gifts on credit.
Helsingin Sanomat
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| 8.12.2006 - TODAY |
 Bank predicts Christmas spending to reach EUR 1.4 billion |
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