Research compiled by HIS Market for Visa has predicted a dip in Christmas spend – the first time in five years – on household goods, clothing and trips away by 0.1 per cent, with the High Street expected to drop for a third consecutive year by 2.1 per cent.
On a brighter note, online sales are predicted to be strong, rising to 3.6 per cent and predicted to be 40p in every pound spent during the seasonal period.
“Looking back, consumers were in a sweet spot in 2016 – low inflation and rising wages meant there was a little extra in household budgets to spend on the festive period,” said Visa’s chief commercial officer Mark Antipof.
“This year has seen a reversal of fortunes – with inflation outpacing wage growth and the recent interest rate rise leaving shoppers with less money in their pockets.
“Although overall sales are likely to disappoint, we expect some clear winners to emerge. Online and mobile are set to take a record share of Christmas spending.
“Hotels, restaurants and bars are also forecast to report strong growth as Britons choose to celebrate Christmas and New Year closer to home.”