While some consumers have already done their Christmas shopping, others are becoming more cautious due to the pressure on household income, he said, adding that the increase in inflation had “come at precisely the wrong time for retailers”.

 

Online sales are set to break a new record this year, but Centre for Economics and Business Research founder Douglas McWilliams said this would only partially make up for declining sales on the high street as consumers become more discerning.

 

“We’re still in a situation where retail sales have been rather high given income,” he said. “It’s not a collapse, it’s just that December will be weaker than some expected. Rather than taking extreme action they’re being more selective about what they do.”

 

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