Christmas spending is set to rise to £82.2bn over the six weeks leading up to Christmas, as high inflation rates give sales a boost this festive season.
The VoucherCodes.co.uk Shopping for Christmas Report 2023 forecasts a mixed bag for retailers this Christmas with sales forecast to rise by 3.3 per cent (£2.7bn) from £82.2bn in 2022 – equating to £1,278 per head on average. However, with prices skyrocketing over the past year, consumers are set to reduce the number of items they purchase resulting in a 4.1 per cent fall in sales volume over the festive season.
With the cost of living eating away at consumer savings for the past year, over two-fifths of the population say they feel worse off this Christmas than last year (42 per cent) and as a result many will cut back where possible.
Sales of gifts and decorations will be hit worst by consumer cutbacks with gift spend falling 3 per cent to £11.25bn, and decorations spend falling a whopping 19.6 per cent to £0.66bn. However, in merrier news, the travel sector can expect a boost of 15.2 per cent as sales rise to £2.18bn, and food and drink retailers can expect a rise of 5.5 per cent to £7.68bn.
Like previous years, London is forecast to spend the most this Christmas at £15.36bn, or £1,778 per head, followed by the South East (£13.07bn or £1,482 per head), both regions are set to outspend the rest of the UK by several billion. Northern Ireland has the lowest total spend, over the six week Christmas period, at £2.07bn or £1,098 per head, closely followed by the North East (£2.70bn or £1,033 per head).
Whilst £12bn is forecast to be spent in hospitality venues over the Christmas period, the hospitality industry is also set to take a hit from the cost of living crisis this year with visitor numbers expected to fall by 4.5 per cent. This year just 28.7 per cent of Brits say they plan to visit a restaurant, pub, bar, or other venue over the festive season, compared to 33.2 per cent who visited last year.
Anita Naik, savings expert at VoucherCodes.co.uk comments: “This year has been tough for Brits with price rises, and mortgage and rent increases, so it’s no surprise that many people are having to cut back on the amount they buy this Christmas.”
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