Retail spend this Christmas will be flat compared to last year, but sales will fall 1.5% in 2010, a report from Deloitte reported today.
Deloitte said that higher unemployment, taxes and National Insurance contributions will take their toll on retail sales next year.
The report, entitled The Retail Review, said that non-food retailers need to focus more than ever on differentiation. 45% of shoppers are spending less on clothing, the report claimed.
The report also says that more than half of those surveyed say their shopping habits have changed for the long term. Shoppers have cut back on indulgences and impulse purchases, and 65% of those surveyed said they are more aware of what they spend their money on.