Christmas is unlikely to bring a great deal of festive cheer to beleaguered retailers, with sales expected to be flat over the crucial period.

Retail sales will stagnate at 0 per cent, compared with a usual 5 per cent growth enjoyed by retailers at Christmastime, according to a report by Mintel.

The report also said that two in four Brits will spend less this Christmas than last year. Only one in five consumers said they would still splash out at Christmas despite the economic downturn, which is significantly less than the same last year, when the credit crunch had just started to take hold.

Mintel director of retail and finance Richard Perks said: “There is always a lot of emotional pressure to spend money and spoil everyone over the festive season and during the years of unprecedented boom time, many Brits enjoyed lavish Christmases. But this year, as budgets tighten, Christmas will become a much less indulgent affair.”

Younger consumers are feeling less worried about splashing out this Christmas, with just 30 per cent of 20- to 24-year-olds asked saying they plan to rein in spending over the festive period.

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