Retailers face tough Christmas as consumer confidence plunges

Oxford Street: Christmas shoppers in London
Oxford Street: Christmas shoppers in London

Consumer confidence has taken a plunge just before Christmas, according to figures from GfK, which reveal a seven point dip compared to November.

December's figures reveal respondents are concerned that the economic situation has deteriorated and will not improve in the next 12 months.

The measure for the general economic situation of the country during the past twelve months decreased by 11 points to -55 in December compared to the previous month.

Respondents were also pessimistic about the economic situation in the next 12 months. Figures show the index dropping by 16 points to -31 in the period.

Nick Moon, managing director of Social Research at GfK, called for caution. He said figures that "seem like very bad news" must be compared to the "massive" eight-point rise in overall consumer confidence during November.

Moon said: "Despite last month's rise, the Index is now only one point higher than it was in October 2012, indicating that consumer sentiment is still fragile despite the fact Christmas is less than a week away."

Interviews to determine the GfK Consumer Confidence Index were carried out from 30 November to 9 December.

The figures coincide with Nielsen research, which found supermarkets had suffered a slowdown in sales in the four weeks ending 8 December as a result of poor general merchandise sales. 

UK consumer confidence measures Dec 2012
Measure ↑ ↔ ↓ Dec 12 Nov 12 Dec 11
Overall index score ↓7 -29 -22 -33
Personal financial situation over last 12 months ↓1 -22 -21 -23
Personal financial situation over next 12 months -7 -7 -10
General economic situation over last 12 months ↓11 -55 -44 -62
General economic situation over next 12 months ↓16 -31 -15 -41
Climate for major purchases ↓1 -27 -26 -31

Source: GfK


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message