The stock market remains volatile, but some stocks are poised to benefit from people’s efforts to tighten their purse strings.

About 55% of the adult population plan to cut their spending this festive season — traditionally a time for excess and overindulgence — as the economic climate worsens, according to a YouGov poll of 2,037 people for credit-reference agency Callcredit. Around 27% of people say they will cut their costs by more than half compared with last year.

“Retailers are having a torrid time as consumers pull in the purse strings,” said Nick Raynor at The Share Centre, a broker. “But there are some stocks that a credit crunch Christmas will be good for as people really try to economise.”

Here are our top eight stocks that could benefit from the plight of the hard-pressed consumer.

1 ALBEMARLE & BOND

The AIM-listed pawnbroker posted a 38% jump in annual profits in September, bolstered by the tightening of bank lending, and could benefit as people look for ways to raise cash this Christmas. “People could pawn last year’s presents to pay for this year’s,” said Raynor.

Albemarle’s pre-tax profit for the year to June 30 came in at £9.74m, up from £7m the previous year, while revenues soared by 43% to £46.9m. Chief executive Charles Nicolson said the outlook for the sector was more favourable than for others. “The expectation is that we are very well placed in these difficult times,” he said.

The company’s share price has slipped 21.9% to 184p in the past year.

2 HALFORDS

The car-maintenance chain and bicycle retailer said last week that it would cut around 250 jobs as the impact of the economic downturn was biting.

The firm — which runs 455 stores selling items such as spark plugs, car radios and bicycles — could benefit from these cost savings, as well as consumers’ desire to cut transport costs and a pre-Christmas sale. It is at present offering up to 50% off bikes and satellite-navigation systems.

Chief executive David Wild has bought 40,000 shares at 245p. They have lost 25% in a year, falling from to 226Çp.

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