By Matthew Legg

Last updated 12:13, Tuesday, 25 November 2008

Almost 80 per cent of people across Cumbria and the north west will spend less on Christmas than they did last year.

Watching the pennies: County retailers are set to face a leaner festive period because of the credit crunch

Research by the Institute of Customer Service (ICS) suggests county retailers will have to brace themselves for a lean festive period as the economy enters recession.

Women will be guarding their purse strings more tightly than men, but all age groups, regions, incomes and professions have shown their concern over the credit problems, the study found. However, 21 per cent of shoppers in Cumbria and the north west said they would spend more during the festive season than a year ago, according to the poll of 12,000 people.

The research revealed 82.8 per cent of women were more likely to spend less than last year on Christmas, compared to 76.3 per cent for men.

The youngest age group in the survey were the most optimistic about spending, with 25.2 per cent of 16 to 24-year-olds saying they were likely to spend more than in 2007, compared to just 13.9 per cent in the 45 to 54-year-old age group.

David Parsons, ICS chief executive, said: “Christmas is the busiest time of the year for many businesses, so this trend will make for worrying reading.

“People will still be buying presents for their loved ones, but with less money to spend they will be more careful where they shop so it is important for retailers to ensure consumers want to visit their stores.

“It is essential not to overlook the impact that excellent customer service can have, especially when staff everywhere are so busy.

“Getting the basics right, of dealing with customers’ needs and priorities, are vital to survival this Christmas.”