Not so Merry Xmas?4 Oct 2022 19:30
In economic news, British shoppers looked set to cut festive spending by more than £4bn this Christmas. According to a report from consultancy Retail Economics and Metapack, 70% of British shoppers were planning on cutting back on non-food spending "to some extent" in the last three months of the year. Overall, British consumers were likely to spend £4.4bn less on non-essentials, down 22% on the same period a year previously. The last three months of the year are crucial for most retailers, as consumers splash out on food, presents and homewares.
"Inflation is set to peak at exactly the wrong time for retailers," said Richard Lim, chief executive of Retail Economics. "Consumers are concerned, budgets are under pressure, and households are intending to cut back this year as they struggle to make ends meet. Against this weakening consumer backdrop, retailers are also facing a pincer movement of rising input and operating costs which is testing business models to breaking point."