Consumer spending sees conflicting reports

A surge of conflicting reports and rumours about troubled high street sales is continuing. Whilst some analysts are predicting the worst Christmas ever, others, such as WWD's Friday report, depicts European retailers are seeing higher spending this holiday season. Not considering the drop in consumer confidence, inflation and a mild autumn sales so far this year, retail spending is apparently back on track, and overall economic data across the European Union is mildly improved, says WWD.

Spending on gifts is expected to gain 2 percent in Europe this year, according to a study by consulting firm Deloitte.

While high-end department stores have reported robust business in clothing and accessories as consumers move away from electronics as gifts this year, discount shopping is expected to be fierce. More Europeans are expected to spend more time comparing prices than in the past, according to studies. Recent discounting schemes from stores such as Selfridges, Liberty and The Gap have been regarded as 'secret' sales for retailers trying to get of excess stock and lure customer to their stores.

British analysts at Lehman Bros. have predicted "a relatively strong Christmas season," but figures from the retail monitor FootFall suggest otherwise. Their latest report states UK shopper numbers were down 15.1 per cent over the same period last year. This weekend will be a major indication of sales to come, with only two weekends left in the run up to Christmas.