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<\/div>\nUK Christmas retail growth is predicted to increase by just 3.4%, compared to the 6.2% jump last year, GlobalData forecasts.<\/p>\n
The growth slowdown comes as shoppers face a 9.3% hike in retail prices, according to the data analytics company.<\/p>\n
The figures represents the second quarter of slowing growth this year, after a peak of 5.2% in the second quarter.<\/p>\n
Food and grocery is predicted to be the fastest growing sector this Christmas, with customers spending \u00a32.8bn more during the quarter than last year.<\/p>\n
Meanwhile, clothing and footwear is forecast to grow the fastest of the non-food sectors.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\nGlobalData\u2019s latest retail spending index, which is calculated by subtracting the number of households that say they will reduce their spending from those that will increase it, sat at -56.4 last month.<\/p>\n
The firm said that suggests that retailers will need to inspire shoppers and emphasise value to encourage them to spend.<\/p>\n
GlobalData lead retail analyst Nick Gladding said: \u201cThis year\u2019s growth in retail sales is driven by inflation, which GlobalData expects to reach 9.3% for the year as a whole.<\/p>\n
\u201cSharply higher prices mean shoppers will spend less in real terms than last year, choosing either to trade down or trim the number of presents they buy\u201d.<\/p>\n
He continued: \u201cLast year sales growth was supported by shoppers spending savings built up during the lockdown.<\/p>\n
\u201cBut with those savings now depleted by cost-of-living increases and mortgage rate hikes, consumers are likely to shop more cautiously and more savvily\u201d.<\/p>\n
GlobalData\u2019s latest retail spending index, which is calculated by subtracting the number of households that say they will reduce their spending from those that will increase it, sat at -56.4 last month.<\/p>\n
The firm said that suggests that retailers will need to inspire shoppers and emphasise value to encourage them to spend.<\/p>\n
GlobalData lead retail analyst Nick Gladding said: \u201cThis year\u2019s growth in retail sales is driven by inflation, which GlobalData expects to reach 9.3% for the year as a whole.<\/p>\n
\u201cSharply higher prices mean shoppers will spend less in real terms than last year, choosing either to trade down or trim the number of presents they buy\u201d.<\/p>\n
He continued: \u201cLast year sales growth was supported by shoppers spending savings built up during the lockdown.<\/p>\n
\u201cBut with those savings now depleted by cost-of-living increases and mortgage rate hikes, consumers are likely to shop more cautiously and more savvily\u201d.<\/p>\n