Christmas is "vital" for retail sector – commercial mortgages

20 November 2006

Retail sales during the Christmas period are predicted to increase compared to last year, a new report reveals.

Investors in the retail sector, including those with commercial mortgages, are likely to see a ten per cent increase in Christmas purchases, while consumers are expected to increase spending by eight per cent in the two weeks before Christmas, according to the British Retail Consortium (BRC).

The BRC anticipates consumer spending to reach £33 billion during December, representing a six per cent increase on the same period last year, with each person spending an average of £390 on Christmas gifts.

Commenting, Kevin Hawkins, director general of the BRC, says: "Christmas is by far the most important time of the year for many retailers and it is also the best indicator of how confident consumers are heading into the new year."

According to Mr Hawkins, the high street is "eager" for strong sales, particularly following poorer consumer confidence and rising costs for most of the year.

In response to the Queen''s Speech, the BRC recently stated that retailers, such as those with commercial mortgages, are crucial to the growth of the economy through investment in local areas and new "regenerative projects".