Many Britons seem to have tightened their belts this festive season in an early sign that retailers won’t have received much of a boost from the holidays.
Forty-seven percent of consumers said they spent less on Christmas this year than last, according to a survey by Retail Economics.
A quarter said they wouldn’t shop in after-Christmas sales because they had already spent their money during Black Friday promotions.
Faster inflation following the Brexit vote and squeezed incomes have curbed consumer spending in the UK this year. Snowy weather may have also kept shoppers away from stores despite deep price cuts from the likes of Debenhams, House of Fraser and New Look.
Online Market
“Festive cheer will be thinly spread across the industry,” said Richard Lim, chief executive officer of Retail Economics, which provides research and analysis on UK retailing. “Online will see the lion’s share of growth.”
More than two-thirds of consumers said they did some of their shopping online this year. Amazon was the most popular retailer, followed by Asda, Tesco and Marks & Spencer.
News by Bloomberg, edited by ESM. Click subscribe to sign up to ESM: The European Supermarket Magazine.
