-
Christmas 2015 Issue 1 - 8 January 2016
FSP RETAIL BUSINESS CONSULTANTS
FSP Christmas Sales Report
-
Comment: Plus a change In FSPs report on Christmas Sales in
2014, we questioned whether Black Friday does anything but shift
sales to earlier in the year and cut margins, we noted the effect
of the mild winter, we saw retailers heavily reliant on online
sales and we recorded M&S not doing very well. Is this year any
different? In a word, no. Currently, available data on which to
comment is limited as retailers absorb the implications of trading
over the festive season and decide how to present them. However, as
normal we shall update our report for you throughout January. The
usual picture is likely to emerge. We will see winners and losers,
the strongest getting stronger and the weakest eroding their
margins further to grab that sale. But on the back of a year of
positive consumer confidence, Christmas 2015 was again a success
for those with a strong and well-balanced multi-channel offer, good
customer service and a value or distinctive product. The biggest
difference now appears to be not whether we shop, but how we shop.
It didnt actually feel like Christmas, shopping in shirtsleeves,
whilst elongated sales on the back of Black Friday did nothing to
inspire the festive spirit. Hardly surprising that
Notonthehighstreet.com delivered growth of 25% in total transaction
value in the lead-up to Christmas. With savvy consumers seeking
innovation, ease of mobile ordering and exceptional value the
winners were those who could either offer the latest gadget or an
integrated shopping solution. Wearable technology outstripped
wearable anything else except, perhaps, wellies, whilst Jigsaws
responsive website helped push online sales up 31% over last year.
Its not all about online though and the off-price stores and value
end of the market treated Christmas as normal a market to be
exploited. Aldi and Lidl saw pre-Christmas growth, which probably
continued with their festive offers of value fine-dining whilst, by
contrast, Waitrose saw like-for-like sales down over the Christmas
period for the first time since FSP started recording Christmas
Sales. The competition for festive grocery shoppers drove grocery
prices to their cheapest in over a year and 1% lower than those
seen in November. (cont over) January 8, 2016 FSP RETAIL BUSINESS
CONSULTANTS 2
-
Comment: Plus a change (continued) Add in the painful experience
of pre-Christmas purchases being returned and re-bought at a lower
price, and the ever fateful rent quarter day, we wont be surprised
if this year bucks the recent trend of almost casualty-free
Christmases and well start to see the weaker retailers fall by the
wayside. As retailers take stock, its good to know that in-store
retailing is not completely dead. Most retailers recognise the
inevitable attrition of internet sales and the best are addressing
this by ensuring that in-store sales staff are provided with
ammunition to persuade shoppers to buy at point of sale where
possible (excellent staff training, special offers etc)
essentially, all the elements needed to offer a great instore
experience. This even applies in the cut-throat electrical industry
where incentivised selling is a thing of the past in some of the
largest retailers and the efforts of sales staff are focused on
ensuring that shoppers benefit from detailed advice whether the
final sale is on the internet or instore. FSP remains convinced
that bricks and mortar selling retains its relevance going forward
but recognises that retailers will increasingly need to rationalise
their retail portfolios to optimise performance across both
physical and virtual networks. This will form the subject of a
forthcoming FSP blog but meanwhile we will keep you all updated on
Christmas reporting as it unfolds.
January 8, 2016 FSP RETAIL BUSINESS CONSULTANTS 3
-
Like-for-Like Averages by Group
January 8, 2016 FSP RETAIL BUSINESS CONSULTANTS 4
Individual categories will be detailed in future editions of
this report
Number of retailers by category in this sample:
2013/14 2014/15 2015/16Food & Beverage 7 5 0Department
Stores 7 6 2Household 7 7 3Leisure 6 7 3Grocery 11 12 4Clothing
& Footwear 14 15 5Personal 6 7 6
-
All Retailers
January 8, 2016 FSP RETAIL BUSINESS CONSULTANTS 5
Many retailers are yet to report on their trading over the
festive period.
Future editions of the FSP Christmas Sales Report will break
down the retailers into their Merchandise Groups, however, with
currently so little to report, the data are only shown in the All
Retailers graph.
-
Christmas Trading and Administrations FSP records Christmas
casualties as those who fail during the key period of Christmas Eve
to the middle of January. Things have looked much brighter in
recent years, although last year was slightly marred when Bank
failed whilst the administration of USC was just a restructuring
exercise.
The number of retailers recorded on SnapShop entering
administration in each of the past few years is: 2015 4 2014 9 2013
43 2012 44 2011 57 2010 42 2009 93 2008 56
January 8, 2016 FSP RETAIL BUSINESS CONSULTANTS 8
-
Future Editions The FSP Christmas Sales Report will be updated
throughout January. Future editions will include graphical
representation under the following headings:
3 year comparison Merchandise Groups:
Department Stores Personal Goods Clothing & Footwear
Household Goods Leisure Goods Grocery Food & Beverage Online
Sales
FSP Christmas Sales Report Methodology FSP seeks to gain an
accurate review of the Christmas period, hence the period end date
must be at least Christmas Eve and no later than the end of
January; the period must be 13 weeks or less. Online Sales are
always shown as Total changes. Graphs are ranked in order, highest
to lowest, first by Like-for-Like change, then by Total change
FSP has gone to its best efforts to ensure this data is correct
but the author reserves the right not to be responsible for the
accuracy of information provided.
January 8, 2016 FSP RETAIL BUSINESS CONSULTANTS 9
-
FSP RETAIL BUSINESS CONSULTANTS 19 Manor Courtyard Hughenden
Avenue High Wycombe UK, HP13 5RE
T +44(0)1494 474740 F +44(0)1494 474262
[email protected]
www.fspretail.com www.snap-shop.co.uk
Tanu Bajaj Wizard T+44(0)1494 474740 F+44(0)1494 474262
[email protected]
Heidi Roberts Scribe T+44(0)1494 474740 M+44(0)7495 899827
F+44(0)1494 474262
[email protected]
Bekki Bedford Guru T+44(0)1494 474740 F+44(0)1494 474262
[email protected]
Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide
Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number
9Slide Number 10
