Credit crunch bites Christmas retail

KMPG says Xmas 2007 is seeing an increase in discount and promotional Xmas shopping
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Consumers are leaving their Christmas shopping later and later, and are increasing the proportion of purchases that are discounted or promotion lines; just some of the findings in KPMG's annual Christmas retail survey.

The survey, conducted by YouGov, found that nearly three-quarters of those questioned had bought at least one piece of discounted or promotional shopping: a rise of four per cent compared to the same time last year, fuelling fears that the credit crunch may have begun to bite at the worse time possible for retailers.

Also of concern was that 21 per cent of those asked said that they had done no Christmas shopping at all, while, a little less surprisingly, 29 per cent of men admitted they were yet to start either.

Echoing recent warnings, the amount consumers were planning to spend was also down on the same time last year, with 73 per cent of consumers saying they had no intention of spending any more than £500 this year. Just three per cent said they were willing to break the £1000 mark.

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