UK consumer Christmas spending to increase £2 billion

2013 looks set to be the strongest Christmas for retailers since the recession, as UK consumers are expected to spend £88.4 billion in Q4 – almost £2 billion up on 2012.The predictions come from the market tracker Verdict, which cites the recovery of the economy, lower housing prices and a reduction in job cuts as large factors in increasing consumer confidence.“On top of all this,” added Maureen Hinton, research director at Verdict, “during the recession there has been a baby boom which means one of the prime targets for Christmas spending - kids - is growing.”The £1.95 billion increase (2.2 per cent) on consumer spending in 2012 is expected to largely be centered on food, driven by inflation, homewares, furniture, DIY and gardening sectors are also expected to grow after years of decline. If accurate, the growth will make Christmas 2013 the strongest Q4 for retail since pre-recession 2007.

Verdict reckons £52 billion will be spent on non-food and £36.4bn on food and grocery products.

“Though consumers will still be looking for value and discounting will continue to be rife in non-food sectors, there will be an increase in volumes this year, which will boost their total sales by £600 million,” said Hinton.Verdict also believes that an increase in convenient delivery options, such as ‘Click & Collect’ services, will occur this year, producing sales of £11.6 billion.“Shoppers have greater confidence in online retailing now and are prepared to leave holiday purchases right up until just before Christmas,” explained Patrick O’Brien, principal analyst at Verdict.“This is supported by the rise of Click & Collect services, which will be much more in evidence this year.”Verdict predicts that Monday, December 23rd will be the busiest day for online deliveries.“Retailers have rushed to develop and market their Click & Collect services leaving shoppers the convenience of collecting purchases in store instead of having to ensure they are at home at the right time,” said O'Brien.Take a look at Verdict's infographic below for more details on how Christmas 2013 is expected to be for retailers.

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