Deloitte Sees Slight Increase in Retail Sales by 2011
In a survey conducted by accounting and business consultancy firm Deloitte, higher taxes and public spending that face shoppers are likely to bring retail sales down by 2011 from its projected 1 percent rise this Christmas.
The survey consisted of 2,000 respondents, showing one out of three shoppers is eyeing a worse financial position next year compared to 13 percent that remained to hope their lot will get better by the time.
Deloitte strategic retail adviser Richard Hyman said that 2011 would be a year of “flat sales growth in UK,” thereby representing an achievement that could counteract a backdrop of decreased income and fading confidence among consumers.
Among the 2,000 respondents, the survey showed that 71 percent of the consumers would make a little increase or no change at all with their previous Christmas spending bracket. The survey also showed that some 76 percent would do similar adjustments on food and drink consumption while 79 percent would redirect their focus on entertainment and leisure.
However, Hyman sees the fall in the total value of retail sales in 2011 a “distinct possibility.”
The survey showed 76 percent of respondents would be willing to impose cutbacks on household goods and clothing should financial constraint strike them, making these items likely to be dependent on the financial position of the consumers. The next likely to be affected by necessary cutbacks are, in decreasing order, the habits of eating on restaurants (67 percent), watching movies (65 percent), and spending on holidays (61 percent).
Deloitte also conducted a separate survey across Europe that tapped 20,000 respondents. The poll revealed similar results as the ones projected by the preceding survey on Christmas spending habits of Europeans. A little more than half of the respondents from Greece came out to be willing to spend less on the areas of Christmas gifts, eating out, and entertainment on cinemas and theatres.