Shoppers should brace themselves for packed pavements over Christmas. Burgeoning demand for iPads, beauty products and luxury brands should fuel the biggest increase in seasonal spending since 2007, according to a leading retail consultancy.
Verdict, which tracks the fortunes of high street stores, expects the amount spent over Christmas to increase by 2.6 per cent to £90.7 billion.
It expects consumers to open their purses a little more freely on the back of rising property prices and improved job security. “It’s not a spectacular picture but it’s a positive one,” Patrick O’Brien, a senior analyst, said. “We’re seeing somewhat of a recovery. Unemployment is coming down and there are signs of an improvement in consumer confidence.”
In spite of its warning of weak autumn takings, Next is earmarked to be a strong performer in the present-buying stakes during December, as are Boots, Superdrug and Primark.
The best performing categories are forecast to be health and beauty, with an increase of 3.7 per cent, followed by clothing, set to rise by 3.5 per cent.
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Food is likely to be up by 3.2 per cent in spite of falling prices. Elec-trical goods could be the subject of a 2.5 per cent improvement in spending, with strong demand for tablets offset by falling prices for Xbox and PS4 games consoles.
“Premium gifts are likely to do well. We’re seeing more of a propensity for people to go for higher-branded goods than before,” Mr O’Brien added.
“People have less fear of losing their jobs this year and that means they are able to plan a bit further into the future.”
If accurate, the forecast would compare favourably with the last few Christmases. A year ago, spending was up by 2 per cent, with John Lewis, Dixons and Sainsbury’s faring well but Debenhams and Marks & Spencer struggling.
In 2012, takings rose by 1.2 per cent and in 2011, when snow hit much of England and Scotland, takings were up by just 0.8 per cent. At Christmas 2009, in the depths of recession, takings fell by 0.3 per cent.