In the realm of festive season retail reports, the VoucherCodes Christmas Spending Report stands out as a beacon of insight. This year, VoucherCodes predicts a noteworthy 3.3% uptick in retail spending, reaching a substantial £84.9 billion. However, this expected sales surge is accompanied by a 4.1% decline in sales volumes, as price-conscious consumers grapple with rising costs.
While 2023’s spending is poised to surpass 2022 by £2.7 billion, the 3.3% increase faces the stark reality of double-digit inflation that has loomed throughout the year, maintaining a significantly higher rate of increase.
The VoucherCodes report suggests that many consumers will be tightening their holiday budgets, with gift sales and decorations taking the brunt of the impact. Gift spending is projected to decrease by 3%, from £11.59 billion to £11.25 billion, while decorations spending is expected to plummet by a substantial 19.6%, dropping from £0.82 billion to £0.66 billion. It appears that consumers may choose to embrace their existing decorations this season.
Nevertheless, some spending categories are set to thrive. The travel sector, in particular, is forecasted to experience a robust 15.2% surge in expenditure, reaching a total of £2.18 billion.
In tandem, in-store sales are on track to continue their recovery from pandemic lows, with nearly two-thirds of purchases (64%) expected to occur in physical stores this Christmas. Consequently, total offline sales are anticipated to reach £54.01 billion, reflecting a 3.5% increase. Online sales will also see a 3% rise, amounting to £30.91 billion.
Furthermore, the report highlights the growing trend of consumers shifting their Christmas shopping online, with a significant preference for mobile devices.