Christmas will retain its sparkle this year as the majority of consumers plan to spend the same amount as last year, according to new research.

57 per cent of UK consumers intend to spend the same this Christmas as they did last year, Deloitte’s annual Christmas Retail Survey revealed. 24 per cent of those polled said they will spend less and 19 per cent said they will spend more.

Deloitte head of retail Tarlok Teji said: “Although this Christmas may be one of the toughest in decades, retailers have been toughing it out for most of the year. We think the talk of Christmas being cancelled is overplayed.”

Drop in confidence

Consumers plan to spend an average of£655 on gifts, socialising and food and drink this year, 7 per cent less than last year, when there was spending growth of 7 per cent.

The change represent a 14 per cent drop in confidence, according to Deloitte.

Strategic adviser to Deloitte's retail practice Richard Hyman said: “These figures provide a very useful barometer for consumer confidence this Christmas. However, it is unlikely that actual retail sales will fall significantly. Broadly speaking, we believe sales will be flat this Christmas with a slight fall possible.”

Staying in will be the new going out, according to Deloitte with those polled planning to spend an average of£126 on socialising this year, 12 per cent less than last year.

Supermarkets set to benefit

The supermarkets are set to benefit this Christmas, with 66 per cent of consumers buying some of their Christmas gifts at grocers this year, compared with 52 per cent last year.

However, 83 per cent of retailers and 64 per cent of consumers believe economic conditions in the UK will deteriorate in 2009.

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