Words About Things

Everyone knows that Christmas is a very important time in retail especially after a difficult year.  This Christmas may be make or break for several retailers who have struggled during the recession. Many are hoping that increased consumer confidence will result in a bigger spend this year than in 2008 when £43.9bn was spent.

Unlike last year retailers are feeling ‘cautiously optimistic’ that this Christmas will bolster their profits. Marks and Spencer have reported better than predicted profits over the last 6 months. They saw improvements in clothing and food sales are are hoping for good sales of historically popular items such as Christmas hampers and other gifts.

“We have had a good start to the third quarter. The market remains competitive and we remain cautious about the outlook for Christmas and the year ahead.” – Executive Chairman Stuart Rose

Online retailers have recently been hit by the Royal Mail strike with 2/3 reporting a 30% fall in revenue despite most offering alternate delivery methods. Two thirds of E-tailers are considering giving up on the Royal Mail for good after the strike has ended. Considering that other delivery companies seem to be more reliable and just as efficient this isn’t a surprise. This could be the beginning of the end for the Royal Mail.

When Ricky Gervais invented Flanimals he had no idea that one day they would be doing their bit to save the world. Gervais invented the characters 25 years ago to make his nephew laugh. Since then Blimble Sprent, Plumboid Doppler, Sprot Guzzlor and the rest have become the stars of bestselling books and a forthcoming movie. Now they are doing their bit to help the victims of HIV/AIDS by appearing on a series of charity Christmas cards.

The cards are part of a series of charity gifts being sold this Christmas by Oxfam as part of their Oxfam Unwrapped campaign. The money raised will go towards helping to prevent the spread of AIDS in developing countries.

“Everyone thought Flanimals were useless – I did. But this year they’re helping Oxfam change the world. There are five Flanimal gifts to choose from and the money goes to different things. It might improve sanitation – give someone clean water. It might give people a voice if they’re oppressed. It might help general humanitarian work work or it might go towards the prevention of HIV and Aids.”

Oxfam also sell less traditional gifts such as clean drinking water or a goat to help families in developing countries. More info can be found on their site here.

Retailers are concerned about the possibility of a frugal Christmas despite signs of stabalisation on the high street. Some companies reported rises in sales in September after four months of reduced spending. There is still concern however that some stores will be forced to close for good if they do not do well over the holiday period.

The golden quarter has the ability to make or break. The first quarter of next year will see further distress in the retail sector. I think there will be a few [retailers] coming down with the Christmas decorations.

Retail specialist Robin Knight

A recent survey of consumers found that most intended to spend 15% less than last year on Christmas presents. They expect to spend around £267 on presents and £28 on decorations. Food and drink remains a priority however with an average spend of £182.

One of the most well know names on the high street Marks & Spencer have reported an improvement in sales with the three months to September 2009 only seeing a 0.5 percent drop like-for-like sales from last year. Christmas is a very important time for M&S and a good Christmas would help them to end 2009 on a positive note. Last year they used unprecedented sales to try and lure in hesitant shoppers towards the end of November. They are hoping that their Christmas hampers and other gifts will boost this year’s earnings.

1. A bit of peace and quiet.

2. To fall asleep on the sofa.

3. Just to see the family.

4. His two front teeth.

5. Turkish Delight.