Last Christmas was something of a disappointment for UK retailers as, although the recession was officially over and disposable income was on the rise, many consumers still felt the need to conserve cash wherever possible. However, following a year in which all areas of the UK economy experienced consistent growth, retailers hope that this year will see a change in fortune.
According to a survey of 300 nationwide retailers conducted by Barclays, almost 70 per cent of those questioned believe that this Christmas will bring bumper sales. In the same survey in 2013, only 52 per cent of retailers had an optimistic outlook for the Christmas trading period.
Indeed, it seems that many retailers are getting in on the festive spirit a little early this year, with 65 per cent of those surveyed intending to celebrate the American tradition of Black Friday on the 28th of November.
The first Friday after Thanksgiving in the States sees thousands of retailers cut prices in a bid to draw consumers to their stores. Furthermore, many are also initiating their festive campaigns from this week, as Fortnum & Mason officially launches its famous Christmas shop window and John Lewis unveils its annual Christmas television advert.
Head of retail and wholesale at Barclays, Richard Lowe, believes the improving conditions seen since January have contributed hugely to this feeling of optimism as December approaches.
He says; “2014 has been a good year for many retailers thanks to heightened consumer confidence and this is clearly reflected in their brighter outlook for the Christmas season.”
Although most would expect London-based retailers to be leading this festive good cheer, it seems that businesses from around the country all share a similar level of optimism. In Manchester, for example, 75 per cent of retailers expect their revenues to rise over the Christmas season, with a quarter predicting a sales lift of 10 per cent or more.
Welsh retailers, meanwhile, are predicting tablet computers to play an instrumental part in the success of the season, with 37 per cent of those surveyed claiming online shopping via tablet would be their main sales channel from a growth perspective. This means that tablet computers have now overtaken stores and smartphones, which garnered 19 per cent and 18 per cent of the responses respectively.
Barclays’ head of corporate banking for Wales, John Union, believes the timing of Black Friday and Mega Monday – the busiest day of the year for online retailers – could throw some interesting comparisons into the mix for Christmas 2014.
He says; “It’s interesting to see that purchases on tablets have been cited as retailers’ biggest opportunity for growth, and social commerce is also one to watch in the future, as ‘buy buttons’ on social networking sites will make online shopping even more accessible.
“The UK hasn’t seen Black Friday and Mega Monday fall on the same weekend since 2008 so retailers will be pulling out all the stops to make it a great shopping experience with some dazzling offers.
“However, some consumers will opt to leave their Christmas shopping later than this, thanks to improved delivery and click-and-collect options.”
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