Last-minute shoppers predicted to break retail spending record in Christmas run-up

In both 2008 and 2009, December 23 was the busiest shopping day of the year, and with Christmas Day set to fall on a Saturday, it is also expected to be the top day for high street shopping in 2010, according to payment card group Visa Europe.

The group expects the public to spend an average of 833,000 a minute or nearly 14,000 a second on the day as shoppers venture out to buy late gifts.

It said research suggested that most people planned to spend more on Christmas this year than they did in 2009, while the looming VAT hike meant consumers were also likely to bring forward the purchase of big-ticket items.

Total spending was up 1.5 per cent year-on-year during the week to the end of Sunday December 19. But within the total, high street spending was slightly down, by less than a third of one per cent, while online spending soared by 11.3 per cent, as the winter weather kept people indoors.

But high street spending levels are expected to have bounced back by December 23, as people opt to pick up gifts themselves, rather than risk them not being delivered in time for Christmas.

Overall, the group expects to process around 26.5 million transactions worth more than 1.2bn on December 23.

The optimism comes despite other research which suggests consumers have become more pessimistic about the state of their finances in the approach to Christmas, but underlines strong recent performance from John Lewis, which is often regarded as a benchmark for the state of consumer spending.

Dr Steve Perry, commercial director at Visa Europe, said: "While the weather has affected some people, our data shows that despite a cautious start to the spending season in November, spending has been strong in the lead-up to the busiest high street shopping day.

"With VAT set to rise from 17.5 per cent to 20 per cent in January, consumers are bringing forward big-ticket purchases this month which has given a boost to spending levels.

"Extended opening hours and heavy discounting are likely to draw in the crowds and capture those who prefer to see and feel their products prior to purchasing," he said.