Christmas shopping to suffer spending setback

 

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By Reuters

Posted on 10 Nov 2008 at 10:55

Online retailers are preparing themselves for a sharp slowdown in growth over the Christmas period, as the economic downturn hits consumer spending.

The survey from IMRG and Capgemini claims a total of £13.16 billion pounds will be spent by British shoppers in the fourth quarter of 2008, a growth of 15% from the year prior.

The figure represents a sharp decline from the giddy heights of the 54% year-on-year increase seen in 2007.

However, the survey claims online retailers are likely to have an easier time of it than high street shops.

"Online sales look set to ride the economic storm and continue to be the place retailers can look for growth. Getting this channel right and overcoming the delivery issues of last year will be key," says Capgemini's Mike Petevinos.

Many traditional retailers are struggling as shoppers cut spending amid rising unemployment, falling house prices and growing fears of recession.

The company also forecasts 8 December as being the biggest UK online shopping day of 2008, with sales worth £320 million.