UK consumers predicted to spend 16 billion pounds this Christmas season

It seems as if the world's current affairs will have little impact on consumer spend this Christmas, as UK consumers are forecast to spend 16 billion pounds during the holiday season. This is 201 million pounds more than consumers in the UK spent last Christmas, according to data from retail firm Conlumino.

Although the increase in spend is only a 1.3 percent increase from 2014, and a 2.6 increase from 2013, it is still significant as it reflects a more positive sentiment towards spend in general. UK consumer spending on gifts, which is said to be the largest component of Christmas expenditure, is set to grow by 2.1 percent this year to 9 billion pounds.

"As the typical consumer finds themselves with that bit more disposable income, some of this will be directed toward more discretionary seasonal retail occasions - the most important of these being Christmas, with gift giving forming a huge part of the big day," commented Greg Bromley, Retail Analyst at Conlumino.

Although Tesco led the UK Christmas market in 2014, with a 16.5 percent market share, Conlumino predicts other discounters, such as Lidl, Home Bargains and Poundland, are also in a strong position this festive season to win consumer spend.

"In general, consumers shopping for Christmas products know that the major grocers are likely to have sizeable ranges, especially on food and the more impulsive small gifts. However, this year the discount retailers are likely to win a greater share of spend, especially on food and decorative items," added Bromley.