Sunday, December 29, 2013

High street post-Christmas sales dampen as shoppers stay at home

Retailers hoping for a steady boost from bargain hunters were disappointed on Friday when a strong start to the post-Christmas sales went into reverse.

The number of shoppers out and about fell 4.7% across the UK compared with the same day last year, according to retail data company Springboard, as storm warnings and wet weather, particularly in Scotland, deterred shoppers. It followed a 1.5% uplift on Boxing Day compared with 2012.

However, online retailers confirmed that sales remained strong, in further evidence of changing shopping habits – with greater numbers cherry-picking the best bargains online from the sofa. High streets were particularly hard hit on Friday, recording a 13.9% slump in visitor numbers, while shopping centres were 1.9% down.

Only out-of-town retail parks recorded a rise in visitors, up 2.3%. "The surge on Boxing Day has had an impact on the following day," said Diane Wehrle, insights director at Springboard. She said the number of shoppers visiting stores across the UK was down 3% in the first three weeks in December.

"Hopes of a last-minute buying spree were blown apart by the bad weather." Even John Lewis, which doesn't open on Boxing Day, so that shoppers must wait until the 27th to bag bargains, suggested there had only been a slight uplift in sales on Friday compared with 2012. But the retailer continues to trade online and said there had been a surge in demand.

Paula Nickolds, buying and brand director for John Lewis, said: "More than ever, people are shopping in different ways with us, reflected in the massive 76% share of traffic to johnlewis.com that came from mobile devices on Christmas Day."

The Bullring shopping centre in Birmingham, meanwhile, welcomed about 150,000 visitors compared with 200,000 on Boxing Day, although the centre was still busy with queues outside some stores, including US teen brand Hollister.

It was a different story for online retailers, where sales appeared to build momentum. "The weather is helping online players. People are staying at home with their turkey leftovers, shopping from home," said Jonathan Brown, chief executive of clothing website M&M Direct. Several retailers confirmed that momentum was building online.

B&Q said online sales rose 69% on Boxing Day and 86% on Friday while M&M Direct also reported a double-digit spike in sales on Boxing Day compared with last year and an improvement on Friday.

Total online sales on Boxing Day rose 40.4% from last year, according to IBM Digital Analytics, which tracks millions of online transactions. Sales on mobile devices outstripped sales via PCs for the first time.

Dixons, the owner of Currys and PC World, said it had recorded a 16% year-on year increase in website traffic from the start of its sale on Christmas Eve until midnight on Christmas Day.

Jeremy Fennell, e-commerce director at Dixons, said: "British shoppers are savvier than ever, using Christmas Eve and Christmas Day to get the jump on Boxing Day sales."

Clothing retailers said that shoppers were using the internet to ensure they bagged the items they wanted after having tried them on in stores.

That's bad news for fashion stores, which have had a difficult end to the year as the mild weather, a squeeze on shoppers' disposable income and competition from tempting and pricey gifts such as games consoles and tablet computers have hit sales.

One industry insider suggested that the British clothing market was down as much as 3% year on year in December, although some retailers have managed to preserve or even lift profits by keeping stocks tight and holding back on discounts. He said: "The last-minute rush hasn't made up for a difficult season."

theguardian.com

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