Last Christmas, retail sales hit an all time high and - although there is likely to be a similar level of spending this year - such marginal growth could be a real cause for concern.
Mintel director of retail research Richard Perks said: 'With evidence pointing to a more cautious consumer, especially after a second interest rate rise earlier this month, there is every possibility that consumers will start to rein-in their spending, even before Christmas.
'In addition, what growth there was in December retail sales last year is likely to be shared mainly amongst the likes of Tesco, Sainsbury's and Marks & Spencer, which are all doing very well right now, leaving little advantage for the others to enjoy.'
The internet will be a major force this Christmas, with 41 per cent of adults claiming they'll shop online and 17 per cent stating that it's their preferred method of shopping. Online sales are expected to reach£2 billion this December, a much larger share than they have achieved in previous years.
According to Perks: 'It is now more important than ever that high street retailers make their brands available online as well, otherwise they will lose share of retail sales.'
Fashion is expected to be the number one gift under the tree this Christmas, with 73 per cent of adults buying clothes as presents. Music and DVDs are still popular, with 70 per cent of us giving them as presents. Books, perfume, aftershave, toiletries and toys and games make up the remaining top five gifts this Christmas.
Once a favourite for every distant relative, vouchers have dropped in popularity this year, with just 38 per cent planning to give them as gifts, compared to almost half of adults who bought them last year.
The average UK shopper will spend£351 on presents this Christmas.
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