Consumers are set to spend an estimated £12bn this Christmas - 5% more than last year, according to figures from the British Retail Consortium (BRC).
The organisation said the retail industry will see an increase throughout all sectors with sales rising in Christmas gifts, food and other festive supplies.
Each consumer is expected to spend an average £435 on Christmas presents, with clothes, books, films and music being some of the best sellers. Christmas food and drink expenditure is also set to increase by 4% this year, with the average household spending £169.
Christmas decorations alone are due to reach sales of £28m. However, sales of Christmas trees are expected to fall by 9%.
Kevin Hawkins, director general at the BRC said: “The retail sector has experienced challenging trading conditions this year and, with even tougher times ahead, these figures will be encouraging for many retailers.
“However, with the recent slump in consumer confidence and falling spending power, growth this year is likely to be driven by discounting. If retailers do see a boom this Christmas, it will be followed by a slump in spending, as consumers really start to feel the pinch and tighten their belts.”
The BRC also estimated that sales of traditional Christmas food will increase, with sales of Brussels sprouts increasing by 7% to £12m and mince pie sales reaching £33m.
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