Research out today claims that shoppers will spend 10 per cent more on presents and other items this Christmas.
However, the Centre for Economics and Business Research (CEBR) says that overall spending over Christmas is set to decline by 7 per cent this year with the entertainment and hospitality sectors expected to lose out. Spending on travel and in restaurants, theatres and other public venues is forecast to fall by a third.
Average Christmas spending per person will fall from £725 last year to £677, resulting in a shortfall of £3 billion for the economy.
The CEBR says that retailers will enjoy a rise in sales of goods, bucking the trend of recent years when people have spent more on outings, events and experiences.
Many people have saved money during the lockdowns and will look to treat themselves at the end of a difficult year, according to the research. The end of lockdown and positive vaccine news will also boost consumer confidence and lift spending further, it says.
The hospitality, travel and entertainment sectors will continue to suffer at the end of a bruising year. The CEBR says: “While the outlook is not entirely positive, with entertainment and hospitality especially vulnerable, the mood this Christmas will be better than many had anticipated.
“Some of this cheer will spill into the retail sector, which will be hoping for a Christmas miracle following the recent wave of bad news.”