Christmas spend set to rise by Â£2.3 billion this year, says Verdict
Consumers will spend Â£2.3 billion more this Christmas than in 2013, according to predictions released by Verdict.
The research firm is forecasting that spending will rise by 2.6% to reach £90.7 billion with £53.6 billion spent on non-food and £37.1 billion spent on food and grocery items.
Online retailing is expected to take a major chunk of Christmas shopping this year, making up £13 billion of spend. Click & collect will represent 12% of total online spend at £1.6 billion as more retailers offer a next day service.
While food will be the main focus for Christmas spend, Verdict expects the health & beauty and clothing & footwear categories to see the biggest spend increases at 3.7% and 3.5% respectively. Verdict predicts that Boots and Superdrug will benefit from their wide ranges and more premium gifting products, although enhanced offers and increasing price competition from the grocers and general merchandisers, particularly in gift sets, will make trading more challenging for them.
Verdict is forecasting that electricals expenditure growth will be steady at 2.5% this Christmas. It said: “Sales growth previously derived from demand for tablets will be harder to achieve as penetration approaches maturity. However, this will be partly countered by price cuts making the new Xbox One and PS4 game consoles more affordable.”
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