UK Christmas sales have been tipped for a slight increase over the impending festive period, with the high street set to come under increased pressure from online retail.
According to a survey from shopping comparison website Kelkoo, Christmas sales are poised to rise by one per cent – or £680 million – to £69.09 billion this year, down from 3.2 per cent in 2010. Online purchases, meanwhile, are expected to climb by 16 per cent to £13.4 billion.
“The outlook this Christmas shows some signs of promise for retailers despite the harsh economic climate,” said Kelkoo’s Chris Simpson. “Consumers will be as determined as ever to make sure they are getting the best prices, which could explain why we expect to see many of them head online for their Christmas shopping.”
Mr Simpson added that online shopping will pose a “real challenge” to the bricks-and-mortar retail sector, but acknowledged that the prospect of government spending cuts is likely to hamper consumer spending this Christmas.
The report came after official data from the Office for National Statistics revealed there had been a 0.6 per cent increase in retail sales last month.
