Christmas sales to rise by 1% with smartphones having a major influence
New research is predicting that shoppers will increase their spending by just 1% this Christmas despite a jump in online shopping.
Research by accountancy firm Deloitte forecasts that online shopping will increase by 17% this Christmas with total UK retail sales edging up by a modest 1%.
Ian Geddes, UK head of retail at Deloitte, said: “We remain cautious on the long-term outlook for UK retail, but there are more reasons to be optimistic than pessimistic this Christmas.”
He added: “Consumer confidence has gradually improved over the course of the year and despite the recent increase in inflation, it is much lower than it was 12 months ago easing the pressure on households. Whilst it is not certain whether this will translate into higher spending, with consumers continuing to show a desire to save, we believe it will be enough to generate modest growth.”
Never Miss a Retail Update!The firm expects consumers to make £330 million worth of Christmas purchases directly on their smartphones this year and a further £500 million via tablet computers.
Colin Jeffrey, the head of multichannel retail at Deloitte, said: “The strongest growth will be found online, with purchases completed on mobile phones double or even triple that of last year. It is also going to be a click-and-collect Christmas with those retailers who have invested in this service set to do well as these customers spend more and collections drive footfall into stores.”
While Deloitte forecasts that 10% of in-store Christmas sales will be influenced by smartphones this year, it predicts this figure will be as high as 18% for the full year in 2016, equivalent to £43 billion of sales.
Jeffrey added: “We are also beginning to see the power of social commerce with more and more consumers using Twitter and Facebook to share reviews, offers and product information. Retailers are also starting to use social media as a forecasting tool, monitoring buzz around certain products to predict demand.”
