Spain continues to see prices rise, yet the average budget Spaniards plan to spend this winter sales season has edged down by 2%, settling at 94.38 euros per person, according to Banqmi, a financial comparison firm.
Last year this budget stood at 96.33 euros, or 93.34 euros after adjustments in 2021 following the pandemic. Despite higher prices, forecasts for the year carry a note of optimism. Antonio Gallardo, a financial expert at Banqmi, notes that while the overall budget may be lower than in 2022 due to price increases, many shoppers are still hoping to snag bigger discounts during sales and Christmas promotions, which is viewed as more favorable than initially expected. [Banqmi survey attribution]
Regional spending reveals seven areas with averages above 100 euros per person: the Basque Country at 110.23 euros, La Rioja at 106.76 euros, the Community of Valencia at 103.34 euros, Navarra at 102.90 euros, Cantabria at 101.31 euros, the Community of Madrid at 100.20 euros, and Asturias at 100.10 euros.
Yet growth this year is uneven. The Basque Country, La Rioja, the Valencian Community, and the two autonomous cities of Ceuta and Melilla report higher budgets compared with last year. In La Rioja the increase is the strongest, rising by 5.42 euros on average. Following are Valencia with a 3.89 euro uptick per consumer; Ceuta up by 2.33 euros; Melilla by 1.90 euros; Andalusia by 0.77 euros; and the Basque Country by 0.24 euros.
In contrast, Galicia, the Canary Islands, and Castilla y León show lower averages, with Galicia at 81.01 euros, the Canary Islands at 82.34 euros, and Castilla y León at 85.34 euros. Galicia also suffers the largest year-on-year drop, with a decrease of 3.32 euros.
A dangerous ‘life buoy’
With prices climbing, Spaniards face tighter budgets and may trim spending, even dipping into saved funds or using credit cards for gifts. The Banqmi expert notes that while cash before the holidays is limited, many still want to shop and hope to find bargains, which keeps demand alive during promotions.
The Banqmi survey indicates that 37.10% of Spaniards will finance their sales purchases with a credit card. This mark has surged since 2021, when 30.11% favored credit, then rising to 34.55% in 2022. This year it has climbed by more than two percentage points. [Banqmi survey attribution]
Gallardo points out that the pattern mirrors a broader trend seen across communities: many households barely meet monthly expenses and rely on the card to keep shopping. He adds that expenditures financed in this way can create future problems if not monitored or controlled.
Regional patterns show Murcia and Extremadura led in card financing, with 45.24% and 45.15% respectively using credit to fund purchases. In contrast, Valencia and Ceuta lean more on savings, with 23.33% and 22.11% drawing from savings for sales purchases. Aragonians and Asturians report higher monthly incomes, while Canarians and La Rioja residents tend to spend more on Christmas gifts from their earnings.
Constant discounts
When it comes to where discounts come from, both physical stores and online options have seen shifts. The tradition of significant savings outside formal sale periods has cooled, as shoppers grow selective and retailers adjust. Analysts observe a cooling period for discount outlets, with cautious confidence returning to sales after several lean years.
Banqmi’s data also show a small decline in physical purchases year over year, with a slight dip of about 0.55%, while online purchases rise by more than two percentage points, narrowing the gap with traditional shopping.
Another notable trend is the growth of what is described as an ongoing type of permanent discount not tied to outlet-style promotions. These offer seasonal outfits at reduced prices across fashion stores via mobile apps or web pages, a practice Banqmi describes as special prices that keep fashion accessible beyond fixed sale windows. [Banqmi survey attribution]