// Festive spend forecasted to plunge £1.8 billion
// Practical gifting to increase as cost-of-living crisis continues
Retailers hoping to maintain the Black Friday momentum could be disappointed as rising costs are expected to dampen consumer spend this Christmas.
PwC’s annual Festive Predictions report has revealed the expected Christmas spend is set to plummet £1.8 billion. This equates to an average spend reduction of 8% or £33 per person.
Sales of fashion and Christmas stocking fillers will see the biggest decline, according to PwC, while practical gifting such as electric blankets is expected to increase.
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The report found ecommerce will be the most popular shopping channel for consumers, with 55% of shoppers planning to buy this way, while click and collect is expected to grow.
Despite food and drink remaining a top priority, the report found consumers are likely to carry on spending less on these categories following the trend seen in recent months.
Overall, around 22% of consumers will spend less while only 9% expect to spend more.
PwC retail director Kien Tan said: “After two years’ of challenging trading due to pandemic lockdowns, tier restrictions and the Omicron variant curtailing festivities, the high street had been hoping for a bounce back this Christmas.
“But, with the cost-of-living crisis beginning to bite consumers, and overall spending forecast to decline by 8% this year as a result, retailers will instead need to help their customers economise, while keeping Christmas special.”
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