Christmas not cancelled, says Deloitte UK

Deloitte said talk of poor Christmas sales have been overplayed. Christmas is not cancelled, according to Deloitte's Christmas Retail Survey. Consumers are planning to cut back on socialising, but intend to spend a similar amount on presents as they did last year. Entertaining at home will be the popular option for those looking to make cut backs.

The business advisory firm said talk of poor retail sales over Christmas have been overplayed and said 57 per cent of consumers intend to spend the same as they did last year, while only 24 per cent said they would be spending less. Deloitte said the average Christmas spend is expected to drop 7 per cent on last year to £655 but said the biggest cut-back would come from socialising, where consumers are intended to spend £126 on entertainment during the festive season, down 12 per cent on last year.

While Christmas may be saved, Deloitte said spending cuts are likely to hit in the New Year, as 83 per cent of retailers and 64 per cent of consumers expect the economy to deteriorate in 2009.