Retail leaders showcase optimism for Christmas 2024 amidst easing inflation.
- Retailers expect a 4% sales increase, reaching £88.3 billion this Christmas.
- High consumer confidence as shoppers begin to spend more than last year.
- Black Friday sales are anticipated to see significant action.
- Grocery and department stores are preparing for an impressive festive season.
The approach of Christmas 2024 has retailers in the UK showing a positive outlook. Easing inflation is aiding consumer confidence, with retailers expecting a 4% increase in sales to £88.3 billion. This growth is partly due to inflation but also reflects a 1.4% increase in sales volume compared to the previous year.
M&S CEO Stuart Machin expressed confidence in the company’s trading outlook. Tesco’s Ken Murphy is similarly optimistic, noting customers’ willingness to spend more to treat themselves. Fortnum’s Tom Athron shares this excitement, pointing to an earlier start in Christmas shopping at John Lewis as evidence of increased consumer activity.
Despite the cheer, there are concerns about the cost-of-living crisis, which The Works CEO Gavin Peck highlights as a factor causing consumers to shop later and spread costs. Asda’s Lord Rose maintains a cautious optimism, noting the challenging year and government changes.
In the fashion sector, M&S reports high demand for festive apparel, while Asos remarks on consumer shift to more affordable price points. This year Matalan has launched Christmas offers earlier in response to early consumer demand.
In health and beauty, both Boots and Superdrug are prioritising Black Friday sales. Superdrug, with its substantial discounts, aims to cater to customer needs amidst the cost-of-living challenge.
The grocery sector is experiencing a trend towards premium ranges, with Tesco noting a strong performance in its Finest line. Sainsbury’s anticipates convenience as a trend, with fewer shoppers intending to cook from scratch.
Department stores such as John Lewis are gearing up for a successful quarter, investing heavily in their Christmas offerings. Fortnum & Mason is also seeing consumers willing to indulge amid easing inflation, with a preference for experiences over material gifts.
Homeware and gifts sectors are observing an early surge in consumer activity. John Lewis reports high sales of festive decorations, while The Cotswold Company notes a surge in customers planning purchases through social media.
The toy industry, according to Very and The Entertainer, is seeing increased sales as buyers aim to manage costs. Trends in ’kidult’ toys show growth, and film-based toys are expected to be popular.
Currys predicts AI technology and retro products will be key sellers this Christmas. Increased demand for AI-driven and nostalgic products in electronics is anticipated. AO.com expects kitchen appliances to be prevalent gift choices during this festive period.
The festive season shows promise for UK retailers as consumer confidence rises, despite ongoing economic challenges.
