Royal Mail share-price boom to spur £2bn Christmas spending spree

As tens of thousands of people collect sizeable profits from their shares in Royal Mail this winter, the high street could be set to benefit as shoppers feel that “at last things are getting better”.

Market research firm Verdict said that profits on Royal Mail shares combined with compensation payments from mis-sold payment protection insurance (PPI) would lead to a “halo effect”, which could prompt consumers to spend more in the run-up to Christmas.

Verdict director of research Maureen Hinton said shoppers were expected to spend an extra £1.9bn on Christmas compared with last year.

Spending in the last three months of the year is expected to come in at £88.4bn, compared to £86.5bn in the same period last year, according to The Guardian.

The 2.2% rise in spending would be the strongest since the recession began.

Verdict also predicted that online sales would jump 12% to £11.6bn, and named Amazon as the biggest beneficiary.

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