Many UK retailers are facing an uncertain Christmas trading period, as rumours of a triple dip recession and continuing struggles in the Eurozone continue to dampen many consumers’ festive spirits. Although this is the first Christmas in almost four years that has not been celebrated under the shadow of economic crisis, consumer confidence remains low and, despite increases in sales results last month, store owners are remaining only cautiously optimistic about the figures they will be adding up come January.
However, despite the gloomy atmosphere left behind by Chancellor George Osborne’s downbeat Autumn Statement earlier this month, it appears that shoppers have decided to embrace Christmas wholeheartedly this year.
Fortnum & Mason enjoyed its busiest ever Saturday
Last weekend, retailers in the West End of London took in a staggering £150 million in sales as hundreds of thousands of shoppers hit the high street in the lead up to Christmas. In fact, customer footfall climbed by 16.5 per cent when compared to the same two day period in 2011 – something which came as quite a surprise to those expecting a subdued Christmas this year.
Part of the reason for the boost in sales, surprisingly, is down to the economic difficulties being faced in European countries such as Spain, Portugal and Italy. This weekend coincided with the Feast of the Immaculate Conception Holiday – largely celebrated in Catholic countries with a long weekend, thus allowing eager shoppers to flock to the UK in order to try to escape mounting inflation in their home countries.
Retailers, of course, were delighted with the unexpected influx of shoppers taking the streets by storm over the weekend.
Fortnum & Mason, one of London’s most respected stores, saw its’ biggest ever Saturday since its establishment in Piccadilly 300 years ago. Sales rose by 13 per cent when compared to the same day last year, proving that the high street is still a viable competitor to the internet marketplace.
Chief executive of the iconic brand, Ewan Venters, said; “It was extraordinary – we could not have fitted a single extra person in the building.”
Another hugely successful British brand, John Lewis, is also celebrating a spate of recent success. The retailer posted a surge of 15 per cent in sales for the last week of trading, with a record breaking total of £142 million being taken in only 7 days. Bosses at the department store chain attributed this largely to a boost in fashion sales, as the cold snap sent shoppers scurrying for warm coats, scarves and knitted jumpers.
With the future of Britain’s economy hanging in the balance, it can only be hoped that the enthusiasm consumers are currently displaying continues on into the foreseeable future. However, with tighter austerity measures coming into play in 2013 and price rises in everything from gas bills to train fares, the question is whether Britain’s tightly squeezed household budgets will be able to support retailers through yet another foray into the dark world of recession.
Do you think retailers can relax slightly over the Christmas period as shoppers are virtually guaranteed to spend excessively, or are advertising campaigns such as the John Lewis Christmas moments and the familiar Coca Cola Christmas lorry essential to put shoppers in the mood to spend? Should the UK be plunged once more into recession, do you believe we will find even more unoccupied properties on the high street in 2013?
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