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Deloitte has predicted a 1% increase in the value of retail sales this Christmas, although it does not expect any growth at all next year. The business advisory firm suggests that retail spending will increase 1% year on year to just beyond £37bn in the month of December. In a survey carried out by Deloitte on over 20,000 consumers across Europe, results show that 71% intend to spend the same or more than last year on gifts.
However, Deloitte also forecasts that the retail industry is unlikely to see any growth in 2011, with a fall a "real risk".
Richard Hyman, Deloitte strategic retail adviser, said: "A 1% increase in retail sales this Christmas caps a remarkable year for UK retail. The industry bucked most forecasts for 2010 and whilst retail sales for the whole year will be broadly flat, in the context of the wider economic environment this is a tremendous outcome . .
"Retailers and consumers have enjoyed an era of falling prices over the past 15 years but this period is rapidly being consigned to history. Since we import much of our product from economies which are growing rapidly, we are essentially importing inflation and will continue to do so going forward. It is unclear how much of these increases retailers will be able to pass on to consumers."