Thousands of Britain’s retailers and bar owners are facing a battle for survival post-Christmas, according to new research.
Online shoppers are tipped to splurge £1bn on Christmas Day alone, but the news is not so good for the High Street, according to GlobalData.
Boxing Day spending on the High Street will drop by a quarter, the research suggests. Total spending, including online, will be around £4bn - 10% below 2019 before the Coronavirus (COVID-19) pandemic struck.
In the week after Christmas, total spending is expected to rise 1% on last year to £13.9bn, but that will still be 9% less than 2019.
Angus Drummond at Vouchercode, which commissioned the research, said the Omicron variant had affected shopping recently while fears of a lockdown and shortages persuaded some Britons to shop early instead of waiting for the sales.
A report yesterday from insolvency specialist Begbies Traynor (AIM:BEG) suggested almost 36,000 retailers are in ‘significant financial distress'.
Begbies said it has seen a 2% increase in retailers facing financial difficulty recently due to inflation and supply issues.
Julie Palmer, partner at Begbies described 2020 as "one of the toughest years ever experienced in the retail sector".
Begbies said 20,000 bars and restaurants also are in a perilous position.
Analysis of ONS data by property adviser Altus revealed around 400 pubs closed this year or an average of 37 a month.