THE ECONOMIC EFFECT OF CHRISTMAS
With just 14 shopping days left before Christmas, we investigate sales figures in this crucial trading period.
Christmas spending is expected to hit £29 billion this year, with the average spend gaining £46 on last year. The British Retail Consortium has reported retail sales to be up 1.8% on last year and online purchases have risen exponentially by 7.5%.
Whilst this comes as good news for the economy, the overall annual outlook is still bleak. David McCorquodale, head of retail at audit, tax and financial advisory service, KPMG has warned that weak top line growth and pressure on profits could reverse the increase. “Retailers […] are trying to hold firm to maintain their margins but, if volumes don’t pick up significantly in the next two weeks, some will bow to the pressure to clear stocks before the year end and cut their prices,” he says.