oxford Street Christmas lights
Consumers however are being tighter with their budget and heading to discount storesReuters

Christmas spending this year is expected to exceed the £16bn mark, according to a new report.

A study from e-commerce firm Webloyalty shows that the total Christmas spend is going to top £16bn – up by 2.7% on 2013's figures. The average consumer is set to spend £443.

The research, which surveyed more than 2,000 consumers, found that while we are expected to spend more this year, bargain hunting will be a priority with more than half of Britons set to shop at low-cost supermarkets such as Aldi, Iceland and Lidl.

However, Tesco will also be a supermarket winner this festive season with 37.9% of shoppers set to take their business to the faltering store.

Online retailers are also set for a busy Christmas with 16.3% of respondents saying that they will do their seasonal shopping solely online, and two thirds saying they will combine online and high-street shopping.

The survey also shows that a fifth of UK consumers are set to shop in the sales before the typical discounting begins on Boxing Day, and a quarter of us will use the pre-Christmas sales for our Christmas presents.

Guy Chiswick, managing director of Webloyalty Northern Europe, said: "With warm weather to blame for a slow start to the winter for retailers, Christmas is looking more important than ever to boost end of year numbers.

"Our research shows that UK shoppers will spend more overall on Christmas this year than in 2013, with gift spend up 3.3% on last year's figures. Interestingly, over a fifth of us intend to spend less this year, meaning a big opportunity for low-cost retailers to cash in this Christmas."