Spending on presents to rise

This year, the high street seems to be winning consumers back

By BBC consumer affairs reporter Karen Bowerman

According to a Christmas spending survey carried out by the pollsters NOP (on behalf of Deloitte and Touche) high street shops are winning back consumers from out of town discount stores.

Despite 34% of consumers fearing the economy is getting worse and could be heading for a recession, the majority of shoppers still plan to enjoy Christmas.

A breakdown of spending suggests an average consumer will spend about £300 on gifts, £156 on food and drink and about £100 on socialising.

Most money will be spent on gifts.

It seems people expect to spend more on presents this year, compared with last, but that is probably because they pushed the boat out for the millennium.

People in Wales and the West of England are expected to be the highest spenders this year, with their total Christmas bill amounting to about £600. They are likely to be closely followed by people in East Anglia.

Consumers in the South West of England are expected to spend the least, although their bills are still likely to reach about £450.

Men splash out more

Unlike last year, men are expected to spend slightly more on gifts than women, although 15% of them will probably leave shopping until the week before Christmas, compared with 5% of women.

Consumers in the North East plan to spend most on clothes, those in London say they will concentrate on food and drink.

But while retailers have been worried in the past about the threat from out-of-town shopping centres and discount stores - this year, the high street seems to be winning consumers back.

More than three quarters plan to buy their presents locally, an increase of 7% on last year, rather than heading out of town.

One in four consumers say they will also use the internet, either for purchases or for price comparisons.

But food is likely to account for many internet sales, giving online retailers a busy season.

Just over half of consumers who intend to shop online say they will be seeking food and drink deliveries during Christmas week.