LONDON: An estimated 40 per cent of prospective shoppers have not yet started their Christmas shopping, according to a survey by accounting firm KPMG. This figure is comparable with 36 per cent at this time last year, KPMG said.
The economic slowdown and high prices have kept the retail market in the country in a virtual stagnation. Retail spending has slumped as rising interest rates, higher oil prices and a property market that is at a standstill have impacted purchases of items like clothing and home improvements.
The survey found that 24 per cent of shoppers have completed over half of their Christmas shopping, which was down from 27 per cent last year. Explaining the survey findings, KPMG's head of retail Helen Dickinson said every year the main concern of shopkeepers has been how late people will leave it to complete their Christmas shopping. "Perhaps the anticipated squeeze on consumer spending is hitting home with even the most organised and ahead-of-time Christmas shoppers," said Dickinson.
The survey, conducted by polling organisation YouGov, found that those mainly responsible for the slower start of shopping were men and shoppers over 30 years of age. Shoppers had already spent, on average, 104 pounds on Christmas gifts.
Shoppers seemed to be waiting for announcements of discounts as high profile stores review their strategy in the wake of lukewarm response.
Another finding by the survey is that 45 per cent of the shoppers are expecting to spend less that 200 pounds, compared with 29 per cent last year.
The survey said retailers should consider pulling in men, the under-30s and the more affluent 30-50 age group. Expected to spend an average of 404 pounds, the latter group had so far spent only 132 pounds.
Posted
on : Tue, 22 Nov 2005 08:45 GMT | Business News
By : Paula Jenkins
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