Financial uncertainty could boost savings in Christmas hampers

The current atmosphere of uncertainty in the UK’s financial market could fuel a boom in saving schemes for Christmas hampers.

Christmas saving schemes allow families to pay into a weekly instalment plan throughout the year. In the weeks preceding the festive season, this money is then used by the savings company to purchase Christmas hampers, gifts and other related products, which are then sent directly to scheme-members.

In the past, these saving plans have proved to be a successful way for families to in the UK manage their money in the run-up to Christmas. However, the financial collapse of Christmas hamper provider Farepak in 2006 led to widespread speculation about whether other festive savings companies would survive.

But the recent profits announcements made by one-time Farepak rival, the Park Group, indicate that consumers are once again turning to instalment plans in order to save for Christmas hampers and gifts.

According to the company, Christmas customer numbers had increased by 4.3 per cent in 2011. By mid-June, £93 million worth of Christmas orders had already been placed on their website, helping operating profits rise by 30 per cent compared to the previous year’s figures.

Chris Houghton, the group’s Managing Director, said that Christmas saving schemes helped introduce “control and discipline into a family’s preparation for Christmas.” He also praised the expansion of the internet and its accessibility for making it easier for customers to participate in these savings plans.

The Park Group was established in 1967 as a provider of Christmas hampers. Today, as well as helping low-income earners save for festive hampers, it also specialises in Christmas gift cards, vouchers and reward cards.

Christmas hampers are popular with families across the income scale in the UK. Indeed, many companies across the country specialise in providing Christmas gift hampers. These often include luxury festive items like Christmas cake, Christmas pudding, biscuit selections, Stollen, whisky, Champagne, sherry, port and Stilton cheese.