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A third of shoppers plan to spend even less this Christmas than they did last year, which was the worst on record.
A survey by ICM for trade paper Retail Week found that less than one-tenth of those polled said that they will spend more this year than last.
In December last year same store sales fell by 3.3% as Britons tightened their belts ahead of the recession and in the immediate aftermath of the collapse of Lehman Brothers.
By this December, far more will have been directly affected by the recession having either lost their jobs or had their hours or pay cut.
ICM's head of retail research said that last year's Christmas spend was some 25% less than had been expected and that this year's prediction that 33% of shoppers would spend less was a sign of greater realism by consumers.
Retailers said the poll's results pointed to yet another late Christmas with most shoppers leaving purchases until the last minute. The survey also showed few shoppers would be influenced to buy early ahead of the raising of the VAT rate in January. While retail chiefs are reluctant to go on the record, some say trading, particularly in fashion, has been dire in recent weeks.
The boss of one of the country's biggest retailers said: It's dead at the moment. Our stores are full of autumn/winter ranges but it's way too hot and too dry to sell them.
He added: We may be a year into the recession but the unemployment impact is only just beginning. And the last thing anybody is going to do if they fear for their job is go out and spend on new clothes.
Marks & Spencer is expected to sound a cautious note on Wednesday when it reports half-year sales figures showing general merchandise mainly clothing down about 4%.
Reader views (7)
And its going to get worse because of low interest rates.As a pensioner with savings after 50 years of work I was getting 6% interest after my house sale. And I would spend it shops on consumer items, etc. Not any more. I have moved to a smaller house and virtually everything has been reserched and bought on the internet from people nobody has heard of, and cheaper, whereas previously I would have gone to one of those large Aircraft Hanger size shops where now the staff outnumber customers whose only useful purpose is to pay so much in bussiness rates that without it the councils would be unable to pay wages. But not for much longer, this Christmas will see a lot more close, as they are all rented, and quarterly rents are due 25 Dec.
- Jim Allan, Lake District, 29/09/2009 09:06
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Lovely jubbly - a SALE of a time in dumpUK; followed by a nice little lunch of green shoots and humble pie. Can't wait!
- Ted, London, 29/09/2009 08:02
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This Christmas will be a very frugal one for me. I am tired of the madness that grips us all at this time of the year lashing out money like water on junk that I do not need want. The waste of money is sickening. I have made 40 Christmas cards for this year and they cost me £12 including the envelopes instead of the £60 I usually spend. My total spend on presents for all the family will be £100, and £60 for food and drink. No crackers, turkey, champagne, port, brandy, decorations, tree, fairy lights, chocolates, fancy biscuits, mince pies, Stilton cheese, fireworks, nuts, beef, hams. And no Chinese-made products. My total spend will be 25% of last year's Christmas. I intend to roll over my Christmas spend efforts into next year making cuts of 35% overall. I have no mortgage now, and will spend no more than £2,000 on a car and driving it until it claps out.
- Albert Hall, hove england, 28/09/2009 21:50
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We are conned by retailers each Christmas that we must have expensive items to celebrate the birth of Christ.If people have money to spare it would be nice if they could give it to a charity.
- Mike M, Bedford England, 28/09/2009 15:56
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All the previous big spends at christmas were on credit. Now people cannot keep generating these big credt card bills, it shows how much people in the past relied on credit.
- Dom, London, 28/09/2009 15:04
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Where is Gordon Browns recovery ?
Where are the green shoots ?
Where has my country gone ?
- Andrew, Ely UK, 28/09/2009 13:01
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Maybe it gives us a chance to rid ourselves of the tag, A " Nation of shopkeepers "
T H Leeds
- Thomas Hayes, Leeds UK, 28/09/2009 12:40
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