UK Retail Sector: Outlook for Christmas 2015
Households have not had it better in over a decade. Underlying momentum has gathered pace over 2015 with strong fundamentals underpinning consumer spending growth as we approach Christmas.
The combination of low levels of inflation strong real wage growth a robust labour market and continued record low interest rates has boosted spending power across UK households. Consumers are feeling their most confident in over 10 years which has supported additional spending and renewed their appetite to borrow.
However retailers have not been the main benefactors to this renewed wave of optimism. Consumer spending growth has outpaced retail sales growth for three consecutive quarters the first time in over 10 years.
View our interactive presentation to see our thoughts on whether we think Christmas 2015 will be one to remember.