Abstract
Overview
Introduction
Verdict Research: The run-up to Christmas is a vital trading period for the
majority of UK retailers and, with such a high proportion of the UK' s annual
retail spending crammed into such a relatively brief period of time, it
reveals important trends that will continue to influence consumer spending.
This brief examines the retail trends emerging from Christmas 2007 to draw
lessons for 2008.
Scope
- The briefing provides an invaluable summary of performance in Q4 2007,
with retail sales per month, growth rates, volume and inflation levels.
- It features like-for-like performance of the major retailers during the
important Christmas trading period and analyses the trends that emerged.
- Performance is analysed by sector highlighting key issues both for
individual retailers and for all sector participants.
Report Highlights
Retailers that are overly reliant on Christmas will struggle as price
competition becomes ever more fierce. The proportion of sales taken in Q4 has
fallen in value terms and retailers unable to drive higher sales in other
parts of the year will suffer.
Online players were among the clear winners for Christmas 2007. We estimate
that online sales grew 38% to £4.8bn in Q4 2007, benefiting both pureplay and
multichannel operators. Despite growing economic worries, luxury and premium
spending also remained strong as shoppers looked to indulgent purchases to
buoy their mood.
Flexibility has been another key theme. Retailers with the ability to flex
space to capitalise on fast growing categories were among the best performers
this Christmas, including supermarkets, department stores and entertainment
retailers.
Reasons to Purchase
- Plan for Christmas 2008 with this comprehensive, yet compact overview of
UK retail in Christmas 2007.
- Use insight into changing buying and seasonal habits to influence
developing retail strategies.
- Use Verdict' s analysis of the key trends in Q4 2007 to develop the most
efficient contemporary retail models and avoid the pitfalls of weak operators.
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