Retail executives from major UK brands express cautious optimism for Christmas 2024, balancing hopeful trends with economic concerns.
- M&S CEO predicts robust sales, driven by stylish seasonal clothing, while John Lewis notes an early sales boost.
- VoucherCodes.co.uk forecasts a 4% sales increase, though economic challenges remain.
- Gavin Peck from The Works highlights fragility in consumer confidence, with delayed purchasing expected.
- Shoppers are seen opting for spreading costs and focusing on value amid the cost-of-living crisis.
As Christmas 2024 approaches, leading figures in the UK retail industry are expressing a mixture of optimism and caution. The easing of inflation has sparked a renewed willingness among shoppers to spend more during the festive season, according to executives like Stuart Machin, CEO of M&S, who describes his outlook as ‘very confident’. Ken Murphy, Tesco’s chief executive, echoes this sentiment, noting an uptick in customers treating themselves.
Department stores are also showing strong performance as the holiday season kicks off, with Fortnum’s leader Tom Athron expressing excitement and John Lewis experiencing early sales momentum. According to forecasts by VoucherCodes.co.uk, sales are expected to rise by 4% this festive season, reaching £88.3bn. This growth is not only seen as a result of inflation but also an increase in sales volume.
Despite these positive signs, the retail sector is facing challenges. Gavin Peck, CEO of The Works, warns that consumer confidence remains fragile, predicting that many will shop later than usual in an effort to manage expenses. This sentiment is shared by Asda’s chairman, Lord Rose, who reflects on the turbulent economic year and changes in government.
Fashion retailers are also observing shifting consumer behaviours. While M&S anticipates higher spending on its ‘most stylish seasonal clothing offer yet’, Asos reports volatility in the market. Some consumers are opting for lower price points without necessarily impacting the company’s pricing strategies. In contrast, Matalan has noted an increase in early demand for their Christmas range, introduced earlier this year as a response to customer interest.
The beauty sector is preparing for high Black Friday sales, with Boots and Superdrug placing emphasis on spreading Christmas costs. Both retailers expect strong performances from their promotions, including significantly discounted prices on popular items. Simon Comins of Superdrug anticipates a continued focus on value-driven purchases, especially in own-brand gifts and popular electrical healthcare tools influenced by social media trends.
Grocery retailers like Tesco and Sainsbury’s are forecasting a successful Christmas period, with customers gravitating towards premium products. Tesco’s Ken Murphy highlights the stable customer sentiment and increased spending on high-quality ranges. Sainsbury’s Simon Roberts notes that, despite the economic challenges of recent years, Christmas remains a pivotal time for family gatherings.
Department stores are gearing up for a promising quarter, boosted by early consumer engagement. John Lewis reports an 18% year-on-year increase in Christmas shop activity, fueled by investment in festive offerings. Fortnum & Mason is seeing a positive start to the season, with customers buying earlier despite the challenging global environment.
Homeware retailers are witnessing elevated sales, with John Lewis and The Cotswold Company reporting increased consumer interest in festive decorations and home accessories. This trend reflects a desire to make homes feel festive sooner, with strategic purchasing decisions influenced by social media insights.
Gift and toy markets are anticipating diverse spending behaviours, adapting to budget constraints while offering novel product ranges. Card Factory and The Works are focusing on varied price points to cater to all budgets. Toys related to popular films are expected to be significant drivers of sales, with heritage toys also gaining traction.
In electricals, the demand for AI-driven and retro products is rising, positioning them as potential bestsellers. Currys and AO.com report heightened interest in products like AI-integrated devices, record players, and essential kitchen appliances. These trends highlight technology’s growing role in consumer purchasing decisions.
As Christmas 2024 approaches, UK’s retail landscape displays a mix of optimism and cautious planning amidst economic challenges.
