Shoppers to spend 1.6 billion pounds more this Christmas

UK consumers will spend 42.8 billion pounds this Christmas, an increase of 4 percent year-on-year, equating to an additional 1.6 billion pounds, according to research from business advisory firm Deloitte.

The increase in retail sales the firm states is due to the fact that Christmas Day falls on a Sunday this year, meaning retailers will benefit from Christmas Eve falling on a Saturday as well as Boxing Day falling on a Monday, meaning two full days of trading hours.

Deloitte also found that online sales will rise by a fifth year-on-year, accounting for three-quarters of total retail sales growth in December, and will very likely surpassing 7 billion pounds for the first time, a considerable increase from 5.8 billion pounds last year.

According to the research, online purchasing equates to 48 percent of spending, overtaking in-store purchasing (45 percent) for the first time, and this trend looks set to continue during the festive period.

UK consumers to spend 42.8 billion pounds this Christmas, 4 percent more than 2015

Ian Geddes, head of retail at Deloitte, said: “Retailers can expect to receive more than a lump of coal in their stockings this Christmas. Sales prospects for the golden quarter are looking good for the UK retail industry, who will feel an uplift following last year’s disappointing November and December.

“Events such as Black Friday and Cyber Monday have dragged forward consumers’ Christmas spending into the end of November. However, there are a number of other factors present that will give a boost to retail sales over the festive period. Christmas on a Sunday will maximise the opportunity for consumers to grab a bargain in the sales that follow.”

Geddes added: “In addition, the value of sterling means that consumers are more likely to stay in the UK during the Christmas break. At the same time, tourists’ buying power is greater, and we have already seen the effects of this, particularly in the luxury sector.”

Image: courtesy of Selfridges