Christmas spending to stall as Brexit fears loom large

UK Christmas spending is set to increase by just 0.8% this year (from £79.72 billion in 2018 to £80.27 billion) due to concerns over the impact of Brexit. And it would be 0.2% in the event of a no-deal departure from the EU, according to research carried out by the Centre for Retail Research (CRR) on behalf of VoucherCodes.co.uk.

There was a 1.2% spike last Christmas. But consumer confidence is now at the lowest point in a decade, with the research identifying 2009 as the last time shoppers held such a bleak outlook.

Other EU nations will average a 1.2% rise in their festive sales, while the USA will see Christmas purchases peak by 2.7% compared to 2018. “Our research suggests that it is fears over the economic impacts of Brexit, rather than any immediate price changes or product shortages themselves, that are set to hit spending the hardest,” Anita Naik, Lifestyle Editor at VoucherCodes.co.uk comments.

“This would indicate that customers are looking for clarity and certainty around their financial situations before wanting to fork out on gifts and an expensive Christmas meal. However, even in the event of a no-deal Brexit, retailers can still expect to see a slight increase in sales this year, but businesses will be hoping for a delay or a form of soft-Brexit if they are to cash in on the Christmas period as much as possible.”