London’s West End is on track to record its lowest festive season sales growth since the pandemic, as nervous shoppers rein in spending ahead of a late November Budget.
The news comes in a Christmas forecast report by New West End Company (NWEC) which said it expected sales to rise just 1.3% to £1.7bn in November and December. With inflation sitting at 3.8%, that represents a fall in real-term spending.
Retailers in the key shopping district are blaming the late November 26 date of the Budget and stubbornly high inflation for gnawing away at public confidence ahead of the all-important golden quarter.
NWEC chief executive Dee Corsi said: “The West End is an iconic destination all year round, but it becomes truly exceptional during the festive season. Our sales forecast reflects its resilience as a flagship destination, backed up by on-street surveys which reveal the depth of loyalty and affection visitors have for the West End. That said, it is clear that consumers are still feeling the pinch and, while the West End’s appeal to visitors is enduring, growth is stalling.”
The report found that, despite the so-called ‘tourist tax’ still being in place, international spend in the district will be higher than domestic spend this Christmas – with international sales forecast to jump 1.9%, compared to a modest 0.9% growth in domestic spend.
To combat flatlining consumer confidence, Corse called on chancellor Rachel Reeves to act at the Budget next month to “supercharge the UK’s appeal to tourists, boost domestic consumer confidence, and back British businesses, during the most important trading period of the year.”
She added: “Bold, targeted growth measures, such as exempting retail, leisure and hospitality operators from a ‘super tax’ business rates multiplier, are exactly what we need.”
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