According to a recent report from VoucherCodes.co.uk and the Centre for Retail Research (CRR), Britons are gearing up to boost their Christmas spending by a whopping £1 billion this holiday season. Despite the lingering uncertainty caused by the ongoing pandemic, consumer spending in the UK is projected to rise by approximately 1.6% year-on-year, reaching a grand total of £84.46 billion in the six weeks leading up to Christmas.
The surge in spending is expected to be largely driven by the realm of online shopping, with a staggering £5.6 billion increase forecasted in internet sales compared to the previous year. It is estimated that around a third of all Christmas purchases will be carried out online, amounting to a hefty £27.87 billion. Conversely, in-person shopping at physical stores is expected to witness a decline of 7% due to a combination of lockdown measures and consumer reluctance to venture out during the festive period.
The transition towards online shopping has been a prevalent trend in recent times, but the pandemic has expedited this shift. In September alone, internet sales encompassed 26.1% of total retail, marking an 8% surge compared to the preceding year. Despite the economic hardships triggered by factors such as escalating unemployment rates and reduced wages for furloughed employees, household incomes have managed to stay relatively steady throughout the year. This can be attributed to the decrease in spending on categories like travel, leisure activities, dining out, and work-related expenses for individuals operating from home.
With numerous households finding themselves with extra disposable income owing to diminished expenditures, the report indicates that consumers might possess more money at their disposal than usual to splurge on Christmas festivities this year. Furthermore, the sturdy post-lockdown retail sales in countries like Germany and France hint at a promising outlook for the upcoming holiday shopping season. Overall, the report envisions a substantial uptick in consumer spending throughout the UK, underpinned by the prevalent online shopping trends and evolving consumer behaviors in response to the pandemic.
For more information on the subject, you can visit the official websites of VoucherCodes.co.uk (https://www.vouchercodes.co.uk/) and the Centre for Retail Research (https://www.retailresearch.org/).
