Christmas retail sales this year will stagnate, showing 0% growth – a marked contrast to the average 5% growth in seasonal spending seen each year since the start of the millennium.
A new report from Mintel says that 41% of people will spend less this Christmas than they did last – almost twice the number who said the same thing in 2007.
Just 20% say they will still splash out at Christmas, a significant drop on last year’s 32%.
“The slowdown in retail sales is taking a long time to develop,” notes director of retail and financial research at Mintel, Richard Perks, “but is now starting to take hold.
“As a result, many retailers will be looking for ways to encourage people to part with their cash, and so we’re likely to see discounting and end-of-year sales start before Christmas.”
Mintel says it is not all bad news: one sector is still relatively buoyant, with younger Brits much less concerned about their Christmas spending budgets than the older generations.