Volumes Forecast To Fall Over Christmas Period

Namnews,  24th October 2023

Total retail spending over the six weeks leading up to Christmas is forecast to rise 3.3% to £84.9bn, boosted by higher prices after a year of soaring inflation.

However, VoucherCodes’s Shopping for Christmas Report 2023 predicts that sales volumes will decline by 4.1% as consumers impacted by the cost of living crisis make cutbacks.

Sales of gifts and decorations are predicted to be worst hit, with gift spending forecast to fall 3% to £11.25bn and decorations spend set to slide 19.6% to £0.66bn.

However, food and drink retailers are set for a boost, with sales increasing 5.5% to £7.68bn.

The report suggests that in-store sales are likely to continue to recover from their pandemic low, with almost two-thirds of purchases to be made in-store this Christmas (64%). As a result, total offline sales are forecast to reach £54.01bn (+3.5% YoY), whereas online sales figures are more modest at £30.91bn (+3% YoY).

Michael Brandy, Senior Commercial Director at VoucherCodes.co.uk, commented: “After a year of price rises and high inflation rates, it comes as no surprise that consumers are planning on cutting back on their Christmas spending this year, and unfortunately retailers are set to bear the brunt of these cuts.

“Whilst retailers can look forward to a rise in spend, they’ll have to work hard to encourage customers to make purchases over the festive season. With limited budgets, consumers will be prioritising value above all else so offering deals, discounts and affordable prices will be vital in encouraging customers to part with their hard-earned cash this Christmas.”

NAM Implications:

• No surprises surely?
• Reputedly, 25% of consumers would cancel Christmas, if possible…