Christmas Spending Set to DROP For First Time in 5 Years
The amount people spend during the Christmas period is set to fall by 0.1% this year, predicts research by IHS for Visa.
This would be the first time that spending has dropped over the November-December period since 2012, when it fell by 1.3%.
This comes after GlobalData predicted that Black Friday spending will reach over £10 billion this year, but despite this, a decline in real term spending is still expected.
Mark Antipof, chief commercial officer at Visa, said, “While is still looks likely that consumers will be hitting stores and websites in search of bargains this Black Friday and Cyber Monday, we expect spending for the duration of the festive season to be lower in comparison to last year.
“2017 has seen a reversal of fortunes- with inflation outpacing wage growth and recent interest rate rise leaving shoppers with less money in their pockets.”
Inflation and the rising cost of living is leaving families out of pocket with less to spend at Christmas.
The biggest drop in spending is expected to be on high street stores, as experts predict a 2.1% fall, making it a third year in a row that shopping in brick-and-mortar stores has fallen.
However, online spending is expected to increase again this year.
Similar to Black Friday, more consumers are choosing to shop online rather than on the high street, with £2 of every £5 spent being online over the festive period.
This is a record share of online spending over the Christmas period.
The amount that Britons will spend on Christmas getaways is also set to fall, with a predicted drop of 4.5% in transport for the season.
Other industries expected to be affected are household goods, clothing, and footwear.