Shoppers tighten Christmas belts

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Scottish shoppers are no longer the biggest festive spenders in the UK, a study has found.

Advisory firm Deloitte said that consumers in Scotland are expected to spend an average total of £709 per person - a 16% drop from last year.

Scotland had led the league table of UK festive spending for the previous three years, but has now dropped to second.

Greater London shoppers are predicted to spend the most this Christmas, at £723 per person.

'Thriftier public'

However, analysts stressed it was not all doom and gloom for retailers as the predicated average spend in Scotland was still higher than the national average of £655 per person.

And while planned spending on socialising was down to £576m, a drop of 7% from last year, it remained 9% higher than the national average.

Jim Boyle, retail partner for Deloitte in Scotland, said: "There is no doubt that falling house prices and rising food, energy and transport costs together with increasing fears in the employment market have impacted on consumer spending for much of 2008.

"And while Christmas is not about to be cancelled, a recession will mean that for the first time in 15 years retailers will face a much thriftier public as consumers become increasingly price-sensitive.

"At this early stage it is far from clear how much of an impact the recent dramatic interest rate cut will have, although it is encouraging for the retail sector that this has largely been passed on to the consumer."

Glasgow Chamber of Commerce chief executive Richard Cairns added: "Scottish consumers may have lost the top Christmas spending spot to Londoners, but they still intend spending substantially above the UK average.

"It is also good news for our shops that only half of Scots, the lowest figure in the UK, will be using the internet for gift shopping. In Glasgow we want to encourage local shoppers and visitors to come to the city and enjoy the whole festive experience."