Asda has predicted that Britons will spend almost £300 million less in the run up to Christmas as a result of low consumer confidence.
Asda, which commissioned the Centre for Economics and Business Research (Cebr) to carry out the survey, expects the UK to spend £10.6 billion in November and December, a drop of £278m on last year.
Asda added that £399 will be spent per family, down from £413 last year.
Up to £2bn will be spent on clothing, which will account for £76 of additional spend per family over Christmas.
Andy Clarke, Asda retail director, said: "Although the overall predicted spend is slightly down on last year, retailers still have a lot to play for in the run up to Christmas. The winners will be those that focus on delivering real value for money, those who don't will lose out."
Doug McWilliams, chief executive of Cebr, added: "It could be worse – we expect inflation to contract sharply in the next months providing some relief for hard-pressed Christmas shoppers. Furthermore, consumers will continue to benefit from strong price competition among supermarkets."
He added: "Finally, although it will take some time for the full impact of the Bank of England rate cut to feed through, it may help to prop up battered consumer confidence in the run up to Christmas."