Retailers face the toughest trading conditions they ever have this Christmas, a new survey from Verdict research has said.
Consumer spending is likely to grow by 2% in the last three months of the year, the company said, compared to 3.1% in the same period last year.
Verdict added that any extra spending is likely to be swallowed up by higher food prices, because food inflation currently stands at 6.3%, reports Retail Week.
Consulting director Neil Saunders said: “For retailers the message is that you’ve got to step up to the plate. You’ve got to be more creative, and you’ve got to understand your customers more.”
Verdict has also said this month that food price growth is beginning to slow, increasing by 0.6% between August and September.
