Bumper Christmas forecasted for UK retail

A study by Datamonitor has revealed 70 per cent of UK consumers intend to increase spending.
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A study by Datamonitor has revealed 70 per cent of UK consumers intend to increase spending.

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Annabel Gorringe senior financial analyst at Datamonitor said: “The survey results act to reinforce the feeling that as the year has progressed, UK consumers have become more optimistic about their spending because they believe we’ve seen the worst of the recession.”

Focussing on one of these areas, clothes and shoes, the UK figures show that 72 per cent of consumers expect to spend more than normal (an eight per cent rise since June). The global average is 40 per cent (a drop of 30 per cent since they were asked in June).

Compared to global consumers, far fewer UK shoppers are intending to cut back on non essential items, highlighting growing confidence on the UK High Street and pointing to a faster pace of recovery for retailers in the UK.

Similarly 50 per cent of UK consumers were intending to buy cheaper brands when they were asked in June, compared to the global figure of 43 per cent.

When asked again about their intended behaviour for December and into the New Year, there had been a very marginal change in the global, whereas the UK figure had dropped by 11 per cent, to 39 per cent.

In June, 26 per cent of consumers in the UK thought the recession had reached the bottom and the economy would start to recover soon.

When they were asked again about their intentions for December and into the New Year, this had risen to 37 per cent. This increase, combined with the intention to spend more on non-essential, signals a step forward in the recovery of the UK High Street from recession.