A report commissioned by UK-based retailer Asda has forecast that UK consumers will spend around £300m (€369.4m) less this Christmas than in 2007 as spending power and customer confidence hits an 'historic low'.

Overall predicted spend in the UK is £10.6bn (€13.05bn) for the 2008 holiday period, according to the study, with each household expected to spend an average of £399 (€491) on Christmas, down from £413 (€508) last year.

However, households are forecast to spend more on food this year, an average of £105 per household as opposed to £97 per household last year.

'Although the overall predicted spend is slightly down on last year, retailers still have a lot to play for in the run up to Christmas,' said Andy Clarke, Asda's retail director. 'The winners will be those that focus on delivering real value for money – those that don't will lose out.'

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