A market research forecast has stated that the UK is set to enjoy the best growth of Christmas sales since the beginning of the financial crisis. According to a report by market research specialist Verdict, consumers are set to spend at least 2 billion pounds more than they did in 2012. This is a rise of 2.2 percent from the same period during 2012, and brings overall spending up to 82.4 billion pounds. With such a rush expected, it is crucial that retailers are ready to deal with the stock demands of such crowds. Having reliable fulfilment services in place will be essential for any retailer that wants to make as much money as possible this Christmas.
Several reasons have been identified for the expected boost in festive sales. Consumer confidence is growing and the jobs market is finally beginning to pick up again. This obviously means that people will feel like they have a bit more money to spend in their pockets. Another reason pointed out by verdict is the fact that there was a baby boom during the recession, so many families now have more children to buy Christmas presents for.
Recent figures and data released by the Government also indicate that the outlook is improving for UK consumer spending. This is good news for the economy as a whole because it accounts for about two thirds of gross domestic product. However, as inflation is still outpacing any wage rises, it would be best for retailers to not rest on their laurels. Shops should be doing everything they possibly can to entice customers through their doors. From attractive window displays to ensuring that order fulfilment targets can be met, it is best to leave nothing to chance.
Online spending is also expected to experience something of a boon this year thanks to the fact that Christmas Day will fall on a Wednesday. This will mean that e-fulfilment services will be in full operation right up until Monday 23rd December, which will be the last date that customers can order and receive products before Christmas Day itself. Verdict expects that online sales will jump by 12 percent to 11.6 billion pounds as a result of Christmas Day being on a Wednesday.
Whilst there will no doubt be some families still struggling this Christmas, people generally want to ensure that they have as memorable a festive period as possible. Compensation payments for mis-sold PPI, and expected windfalls from the floatation of the Royal Mail, are two points identified by Verdict as having an effect on consumer confidence. It may take time for the country to go back to the days of the turn of the century economically, but things are moving in the right direction.
A thriving retail market generally means a thriving economy. As long as retailers have smooth production and distribution lines, there should be little reason to mope this year. However, it’s not too late to enlist outside help to ensure highly successful Christmas sales.
About the Author – Sarah Makinson is a small business owner and regular contributor to a range of business and consumer bogs, including SKU.
