£99bn Christmas cheer ahead for UK retail

490
Christmas cheer

It’s been one of the toughest years but UK retailers are set to enjoy some Christmas cheer thanks to a “golden quarter”.

According to analyst forecast from GlobalData, UK retail sales will increase two per cent to £98.8 billion for the final quarter of 2018.

Despite the positive forecast, the overall growth in this year’s “golden quarter” is modest compared to the 2.3 per cent uptick in 2017.

Grocery spend is set to drive the overall growth, as food inflation leads to a 2.5 per cent increase in this category.

Meanwhile, non-food spend is forecast to grow at 1.6 per cent, with health and beauty predicted to be the best performing retail sector.

However, GlobalData UK retail research director Patrick O’Brien warned that low consumer confidence and confusion over Brexit would inhibit big-ticket spend, and that trading down to value retailers is becoming more widespread.

Click here to sign up to Retail Gazette‘s free daily email newsletter