Luxury items are in hot demand this Christmas as consumers shrug off the cooling housing market, interest rate rises and credit squeeze to splurge on designer handbags and fine wine.
Research published on Tuesday by Deloitte, the consultancy, suggests resilient consumer attitudes in the run-up to Christmas - particularly for luxury products - but warns that the determination to spend on the festive period could lead to a painful hangover in the new year.
Some 19 per cent of consumers intend to purchase a designer handbag or shoes, according to a survey of 1,000 adults, while 16 per cent plan to buy food from a farmers' market - which compares with 6 per cent purchasing upmarket foods last Christmas.
"The rich are getting richer at a faster rate than the less well-off," said Tarlok Teji, analyst at Deloitte. "There is an underlying trend for 'premiumisation', or trading up."
In all, consumers intend to spend 7 per cent more on Christmas gifts, socialising and food and drink, the report found.
Price has also diminished in importance for shoppers deciding where to shop. In 2005 some 37 per cent of consumers listed price as a main reason for choosing a particular store; last year it fell to 23 per cent and fell further to 20 per cent this year.
"Value for money" has declined as a reason over the same period, while "convenience" has risen from 50 per cent of shoppers in 2005 to 62 per cent this year - evidence, according to Deloitte, of our so-called "cash rich, time poor" society.
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Deloitte decided to repeat its survey this year after concerns that spending would be hit by the credit squeeze. But the November survey differs little from the September version, finding that consumers intend to spend an average of £706 compared with £662 a year earlier, or £33.6bn overall.
But Mr Teji warned that, although Christmas should defy doom merchants, the following months might tell a different story: "It could be the last hurrah before ... a downward trend."
One company more sensitive than most to a potential retail hangover is Majestic Wine, which reported interim resultson Monday.
Tim How, chief executive, noted "challenging" trading conditions, but said customers' thirst for fine wines was continuing unabated. "Last week somebody in our Mayfair store bought an Imperial [6 litres] Latour 88" for £2,500, he said.
If growing expectations of a serious slowdown do become reality, retailers are aiming to supply so-called luxury products for less.
Asda intends to make "the inaffordable affordable" by selling cheap truffles grown on a farm in Pontefract, Yorkshire. The only catch is that there will be a three- to five-year wait before the truffles will be ready to be harvested.
In the meantime, luxury lovers who have fallen on hard times can rely on Lidl, the German discount chain that has been supplying cheap food to the UK since 1994. For a second Christmas, Lidl's lobsters are selling for less than £5 each.
Research published on Tuesday by Deloitte, the consultancy, suggests resilient consumer attitudes in the run-up to Christmas - particularly for luxury products - but warns that the determination to spend on the festive period could lead to a painful hangover in the new year.
Some 19 per cent of consumers intend to purchase a designer handbag or shoes, according to a survey of 1,000 adults, while 16 per cent plan to buy food from a farmers' market - which compares with 6 per cent purchasing upmarket foods last Christmas.
"The rich are getting richer at a faster rate than the less well-off," said Tarlok Teji, analyst at Deloitte. "There is an underlying trend for 'premiumisation', or trading up."
In all, consumers intend to spend 7 per cent more on Christmas gifts, socialising and food and drink, the report found.
Price has also diminished in importance for shoppers deciding where to shop. In 2005 some 37 per cent of consumers listed price as a main reason for choosing a particular store; last year it fell to 23 per cent and fell further to 20 per cent this year.
"Value for money" has declined as a reason over the same period, while "convenience" has risen from 50 per cent of shoppers in 2005 to 62 per cent this year - evidence, according to Deloitte, of our so-called "cash rich, time poor" society.
The tabular content relating to this article is not available to view. Apologies in advance for the inconvenience caused.
Deloitte decided to repeat its survey this year after concerns that spending would be hit by the credit squeeze. But the November survey differs little from the September version, finding that consumers intend to spend an average of £706 compared with £662 a year earlier, or £33.6bn overall.
But Mr Teji warned that, although Christmas should defy doom merchants, the following months might tell a different story: "It could be the last hurrah before ... a downward trend."
One company more sensitive than most to a potential retail hangover is Majestic Wine, which reported interim resultson Monday.
Tim How, chief executive, noted "challenging" trading conditions, but said customers' thirst for fine wines was continuing unabated. "Last week somebody in our Mayfair store bought an Imperial [6 litres] Latour 88" for £2,500, he said.
If growing expectations of a serious slowdown do become reality, retailers are aiming to supply so-called luxury products for less.
Asda intends to make "the inaffordable affordable" by selling cheap truffles grown on a farm in Pontefract, Yorkshire. The only catch is that there will be a three- to five-year wait before the truffles will be ready to be harvested.
In the meantime, luxury lovers who have fallen on hard times can rely on Lidl, the German discount chain that has been supplying cheap food to the UK since 1994. For a second Christmas, Lidl's lobsters are selling for less than £5 each.
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