Festive shoppers `will spend to forget debt problems`

Consumers hitting the shops this Christmas may not have as much disposable income as in recent years but they will carry on spending anyway, a leading trade body has claimed.

Many people may tighten their financial budgets this festive season due to the recent credit crunch, with "people feeling less well off", the British Retail Consortium (BRC) said.

However, the head of media for the BRC suggested that people usually buy food and drink for Christmas no matter what the financial conditions, so retailers should still have an "all right" festive season.

Richard Dodd added: "The facts show this year that disposable income has been falling… the measures of consumer confidence show that`s been falling as well. Christmas usually turns out all right for retailers even if it`s not spectacular."

The BRC is the lead trade association representing the whole range of retailers.