Retailers in the U.K. are set to make more money this Christmas — but due to higher prices, not because shoppers are buying more items, according to researchers.
A study by Global Data also found that brands, mainly fashion-related, need to go the extra mile to convince consumers to spend money. "Non-food retailers will continue to struggle this Christmas," it said.
"Volumes are forecast to fall by 0.1 percent as price rises, which came into play as a result of the weakened pound, will discourage cash strapped consumers from shopping over the seasonal period," the research company said.
British government figures showed inflation rising at a rate of 3 percent in October — unchanged from the previous month. At the same time last year, inflation had risen by 0.9 percent. As a result, and with flat wage growth, consumers have less money to spend on non-essential items, like clothes. While revenues could rise for these retailers, that won't necessarily translate into more profit, if the costs for these firms are also increasing.