Region’s retailers bullish ahead of festive period
IN line with improving economic conditions and a healthy year of trading, the region’s retail sector is feeling bullish about the upcoming festive season.
According to an independent survey of multi-channel retailers, commissioned by Barclays’ Retail & Wholesale banking team, 67% of retailers in the region are feeling more confident about Christmas trading compared to last year, which includes 27% who said they are far more confident.
The majority of those surveyed (70%) also said that they expected revenues to increase, with nearly a fifth (18%) expecting sales to increase by 10% or more, compared to 2013.
Local retailers are expecting to see growth across all of their sales channels over Christmas, with shopping on tablets predicted to take off.
Thirty-five per cent of retailers said it would be their main sales channel from a growth perspective, ahead of stores at 19% and smartphones at 17%. While in its infancy, retailers believe that shopping for gifts via social networking sites could increase by nearly a quarter (24%) compared to 2013.
Debbie Mullen, Yorkshire head of corporate at Barclays, said: “2014 has been a good year for many retailers in the Yorkshire and Humber region thanks to heightened consumer confidence and this is clearly reflected in their brighter outlook for the Christmas season. It’s interesting to see that purchases on tablets have been cited as retailers’ biggest opportunity for growth and social commerce is also one to watch in the future, as ‘buy buttons’ on social networking sites will make online shopping even more accessible.”
The popularity of American shopping days is also on the up, with 64% of retailers planning Black Friday promotions on November 28, the day after Thanksgiving, one of the most important shopping days in the U.S. retail calendar.
Sixty-seven per cent of those surveyed also said that they expect the popularity of Black Friday promotions to continue to gain traction in the UK in the years ahead.
Another tradition that has crossed the Atlantic is Mega Monday, traditionally the busiest online shopping day in America, which is set to fall on December 1. Nearly all (96%) of the retailers questioned predicted that traffic will increase to their site on Mega Monday, compared to last year.
Mullen continued: “The UK hasn’t seen Black Friday and Mega Monday fall on the same weekend since 2008 so retailers will be pulling out all the stops to make it a great shopping experience with some dazzling offers. However, some consumers will opt to leave their Christmas shopping later than this, thanks to improved delivery and Click and Collect options.”
