Businesses are fearing a bleak Christmas period as households plan to cut back on festive spending, according to new data.
Barclaycard said that nearly half the people it surveyed plan to spend less this Christmas, with 42% cutting back on socialising and 59% intending to buy less generous gifts.
Data from the British Retail Consortium, cited in Reuters, found that spending in major stores fell in October from the previous month to 1.6% from 2.2% when compared to the same periods last year.
"Christmas will come later than last year for many and there may be more gloom than glitter as families focus on making ends meet, particularly as mortgage payments rise," BRC chief executive Helen Dickinson said.
Specifically, high street retailers such as JD Sports, Frasers and Primark could be hit, as well those in the hospitality sector, including JD Wetherspoon.
Footfall figures in retail also make for worrying reading.
Statistics from retail analyst Springboard said footfall increased just 6.8% last month, compared to 8.6% in August and 15.6% in July and making three months of slowing.
“Superficially September’s results suggest that footfall has largely been unaffected by the cost-of-living crisis, with the gap from 2019 narrowing marginally to minus 12.6% from minus 13.2% in August,” said Springboard marketing and insights director Diane Wehrle, quoted in the Retail Gazette.
“However, far more revealing about the severity of the economic situation facing households is a comparison of footfall in September 2022 with September 2021, when all Covid restrictions had been removed.”
“High streets are not only facing the challenge of inflation, but hybrid working is also impacting the recovery of footfall.”
“With around a half of all employees continuing to work at home for at least part of the working week, activity in high streets remains significantly lower than in 2019, particularly during the Monday to Friday period.”