Shoppers will spend an extra £2.3bn this Christmas bringing the total to £90.7bn, according to Verdict Research.
In the run up to the festive season, consumer spend will increase by 2.6% year on year as consumer confidence rises and the housing market improves.
Clothing and footwear will see a 3.5% increase in spend, with Next and Primark expected to be the big winners.
Online retailing will play a key role in Christmas shopping this year, making up £13bn of the UK’s total spend. Click-and-collect will represent 12% of online spend at £1.6bn and will be an essential part of retailers’ multichannel strategy as more stores offer a next day service, the research found.