British consumers are opening their wallets more freely in the final run-up to Christmas, with retailers reporting a 2.3 per cent year-on-year rise in spending for the seven weeks to 20 December, according to figures from Visa.
Online sales led the increase, up 6.1 per cent, while electronics and homeware purchases enjoyed the most significant boost as department stores reported a 7 per cent uptick in trade.
However, not all retail categories shared in the festive lift. Clothing and accessories sales dropped by 2 per cent, underlining consumers’ desire to allocate their budgets more strategically. Analysts suggest a combination of careful spending and a mild autumn, which triggered widespread discounting, contributed to fashion’s subdued performance.
Alicia Ngomo Fernandez, head of UK consulting at Visa, said the data pointed to “moderate growth” in sales, accompanied by “stronger online shopping and solid growth in spending at department stores”. This cautious optimism comes as households benefit from an improvement in disposable income, which rose by 10.5 per cent in November, marking six straight months of double-digit gains, according to Asda’s Income Tracker compiled by Cebr.
Footfall on what retailers dubbed “Super Saturday” was up 0.8 per cent against the same day last year, with the consultancy Sensormatic Solutions estimating consumers would spend roughly £3 billion. Yet, visitor levels in high streets and shopping centres for the first three weeks of December remained 3.6 per cent below 2023, likely reflecting the continued impact of higher costs for essentials such as energy and groceries.
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