With the Bank Holiday upon us, it is generally assumed that consumers will be eagerly stocking up on Easter eggs, toy rabbits and wicker baskets in a bid to celebrate the first big holiday of the year. However, a new survey released by Conlumino and Web Loyalty indicates that this may not necessarily be the case this year.
Although sales are expected to rise by 3.2 per cent in the Easter retail market, this will be largely driven by a boost in the food and drink categories as consumers take advantage of the Bank Holiday. In fact, Easter gifts are due to be outperformed by DIY and fashion as well, with only the chocolate eggs playing a key role in raising sales of the seasonal produce by 1.4 per cent.
There are two theories as to why Easter has slowly begun to recede as a key spending holiday for consumers – an ongoing concern about personal finances being the major one. However, managing director Neil Saunders of Conlumino has a different viewpoint.
He says; “Slower performance in Easter gifts could reflect a growing apathy among the British public towards Easter as a holiday.”
Yet the report indicates a continuing need by consumers to conserve cash is at the heart of this seasonal apathy. It was found that inflation was the key fear amongst consumers at this stage of economic recovery, with 66.4 per cent of respondents believing household utility bills will rise in the near future, and 63.5 per cent concerned about food inflation despite the price war currently being fought by supermarket brands.
In addition, 54.9 per cent of consumers are now keeping a close eye on petrol prices, as the fluctuating cost of wholesale oil has led many to believe that these are due to spike as the season unfolds. All of these factors together have meant that enthusiasm for spending on luxuries such as Easter gifts has largely plummeted.
Fortunately, these concerns largely relate to personal finances as opposed to the economy as a whole, as the majority of respondents claimed to have seen improvements in this area over the past 12 months. This has led to the outlook from a consumer point of view edging ahead of personal circumstances for the first time since June 2013.
Managing director of Web Loyalty for Northern Europe, Guy Chiswick, says; “The fact that sentiment about personal finance is so much lower suggests that it will take much longer for consumers to feel the impact of this recovery on their everyday lives.”
So who will the big winners be this Easter? Well, the £2.9 billion UK toy market is set to benefit from a run of recent movie releases, with The Amazing Spider-Man 2 forecast to lift sales of outdoor and tech toys. Chocolatiers may also rest easy – although it may be wise to remove wicker baskets, bunnies and chicks from their window displays!
Have you chosen to eschew traditional Easter gifts this year?
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