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In spite of the current economic turmoil, 57% of UK consumers say they intend to spend the same this Christmas as they did last year, according to the 14th annual Christmas Retail Survey, published by the business advisory firm Deloitte. Twenty-four percent of respondents say they will spend less, and 19% say they will spend more. For many people in the UK, this year will be Christmas as usual, the survey concluded.
Deloitte described books as a "significant mover" in this year's Christmas survey with shoppers placing books fourth on their Christmas shopping list. Sixty three percent of those surveyed said they would be buying books this Christmas, up from 55% last year. Books were as desirable as DVDs but were behind clothes, CDs and cosmetics in consumers' shopping list. Books were also fourth in the list of what people wanted most for Christmas. Deloitte reported that 65% of those surveyed said they were hoping to receive something to read this year, with clothes the most desired present.
Tarlok Teji, head of retail at Deloitte, said: “Although this Christmas may be one of the toughest in decades, retailers have been toughing it out for most of the year. We think the talk of Christmas being cancelled is overplayed. Whilst total planned spend including socialising may be down, the majority of consumers intend to spend the same as last year. Retailers will need to understand their consumers better than ever and offer relevant products to take a share of the Christmas wallet."
On average, consumers are planning to spend £655 on gifts, socialising and food and drink this year. This is 7% less than last year.
Richard Hyman, strategic adviser to the retail practice at Deloitte, said: “These figures provide a very useful barometer for consumer confidence this Christmas. However, it is unlikely that actual retail sales will fall significantly. Broadly speaking, we believe sales will be flat this Christmas with a slight fall possible. Consumers need certainty to have the confidence to spend and retailers will be hopeful that last week’s interest rate cuts feed directly into their disposable income.”
The survey findings were based on consumer data obtained by market research undertaken by TNS on behalf of Deloitte. Over 1000 adults aged 16+ were interviewed between 29th August and 31st August 2008 and again between 31st October and 2nd November.