With only five shopping days to go until Christmas, panicked parents and frantic friends will be wracking their brains for that ideal last-minute gift for their loved ones in time for the big day. This means that retailers will be taking full advantage of the festive frenzy, lengthening store opening hours and pushing promotions to their limits in order to boost the bumper Christmas revenues expected to be taken in the first post-recession Christmas.
However, because many consumers are still unwilling to spend extravagantly, retailers are facing significant competition from online marketplaces such as eBay and Amazon this year as many can afford to drop their prices in a last ditch attempt at attracting higher levels of custom. The question is, then, whether the greatest deals available are on the high street or online.
This year, online prices have dropped at their fastest rates for five years – down by 1.2 per cent on average in the third quarter. Largely thanks to the number of consumers now choosing to purchase gifts online and the amount of competition that exists in the field of e-retailing, bargain hunters would be wise to sign in online to check prices before hitting the local shops, especially as prices on the high street rose by 0.8 per cent over the same period.
According to the Centre for Economics and Business Research, the gap between in store and online inflation currently sits at 4.6 per cent – a factor they believe is down to the overhead costs that stores must charge in order to remain operational.
Economist Shehan Mohamed of the CEBR explains; “High street stores have fixed overheads in terms of heating and lighting and prices here are rising.
“Internet retailers do not have the same problem.”
The pricing differences between online retailers and the high street are especially apparent in the most popular toys this Christmas. A Cabbage Patch Kids doll, on average, costs £29.99 when purchased in a commercial property, yet retails for £26.83 online.
Similarly, children’s computer tablet InnoTab 2 costs a hefty £84.99 on the high street, yet gift givers can save money by going online where it costs between £59.49 and £64.49 depending on colour preference.
Of course, not all of the Christmas toy toppers can be found at a lower price online. Hasbro’s re-launched Furby will set internet customers back by £64.48 to £99.99, again depending on which colour you would prefer – making the high street cost of £59.99 look like a positive steal.
While the majority of this year’s most requested gifts may be cheaper online, it is certainly worth weighing up the cost fully before clicking “Add to shopping basket” on an impulse. Postage and packing costs are often fairly steep this close to Christmas, and while retailers such as Amazon and Play.com sometimes offer free delivery on items this can take several days – not exactly useful when presents will need to be under the tree this time in three days!
Furthermore, many online retailers do not offer to include a gift receipt with purchases, meaning that if the recipient of your gift does not like their present they are faced with the awkward choice between asking you to send it back or hiding it in the back of a cupboard never to be seen again. Chain stores, however, will print off a gift receipt on request which can then be used to return the item to any of their branches nationwide.
Finally, the greatest peril of online ordering in the week before Christmas is the chance of your carefully selected gift getting lost in the post. The Royal Mail and its Parcelforce arm are incredibly busy at this time of year, and despite the mass hiring of seasonal staff mistakes are bound to happen sooner or later. Unless you fancy a last minute dash to the shops on Christmas Eve, it may be advisable to make physical purchases.
The high street has suffered in recent years, with polls now showing that one in ten commercial properties now lie empty nationwide. At the most festive time of year take your family shopping to admire the Christmas lights, mingle with fellow shoppers and sip on an indulgent gingerbread latte or glass of eggnog – after all, with internet shopping continuing to rise in popularity, no one knows for how many years this option will be available.
Do you tend to make the majority of your Christmas purchases online, or do you still stick faithfully to the high street to bag your bargains? Will the festive season, teamed with fairy lights and Christmas trees in town centres, encourage consumers back to the high street, or will the chilly weather drive the vast majority back inside to the warm fireside and internet retailers?
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