MOST shoppers spend far more on their credit cards over December than during any other month of the year.
According to FNB Credit Card, people spent a total of R6,7 billion over the December period last year, a 22% increase when compared to the rest of the year.
The largest increases were on entertainment followed by luxury goods and then housewares spending.
“We looked at our entire database, and took into account the average money spent – from January to November last year, and the relative increase seen in December – to indicate of how much more our customers may spend over this festive season,” said Chris Labuschagne, CEO of FNB Credit Card.
FNB’s credit card data shows that, on average, people who usually spend R6 650 on their card during the year increased their spending by R1 460 in December 2015, which is an average of R8 100 for every customer.
The biggest jump, of 52%, is seen in the entertainment category. Entertainment includes restaurants, liquor stores, tickets for theatre and events, as well as sport and it increased from an average of R447 million, by R234 million, to a total of R681 million.
Another large increase is seen in luxury goods. Shoppers spent 51% more at toy, clothing, electronic and jewellery stores during December of last year than compared to the rest of the year.
Average spend in this category increases from R241 million to R365 million during this time.
Interestingly, houseware sales at furniture, hardware and garden stores, increased by 44% in December when compared to the rest of the year – from an average of R281,2 million to R404 million, as consumers take time out to make home improvements.
“Our customers spent on average R350 a month on items for their homes during the year and this went up to R485 in December last year,” said Labuschagne.
Health and beauty saw an increase of 42%, from R158,9 million to R225,7 million, and grocery bills went up from an average of R919 million to R1,2 billion, which is an increase of 40%.
Although Mzansi people are not travelling to work every day, there is still a 12% increase in petrol for the festive season as families travel to holiday destinations.
The only category that sees a significant decrease is spending on airline tickets, which dropped by 25%—R292 million spent monthly during the year versus R220 million in December as most people are already at their holiday destinations.
“While the festive season is a great time to enjoy with family and friends, make sure that you don’t stretch your spending beyond what you are able to pay back,” warned Labuschagne.
