Despite a particularly tough year at retail, Mintel is forecasting some Christmas cheer for Britain’s shopkeepers.
Latest research predicts that December’s retail sales will reach £48.7 billion, growing a respectable 3.8% compared to last December when sales hit £46.9 billion.
Sales through non-food retailers this December are expected to reach £23.9 billion (including £4.2 billion from online sales generated by physical stores).
Mintel also estimates that online only retailers will account for £6 billion worth of sales, while total online sales this December will be worth £11.6 billion, accounting for 23.7% of all retail sales.
“We’re forecasting that December will result in steady growth for the retail sector,” said Nick Carroll, associate director of retail research at Mintel. “In normal circumstances, with the current low unemployment and solid wage growth, this would point to an even better Christmas than in past years.”
“However, this has, of course, been far from an ideal run-up, with Brexit uncertainty dragging on and an election now a late additional hurdle for the sector to pass and process before the big day,” he added. “Despite this, the past few festive periods have shown that customers can be resilient in the face of uncertain times and we believe underlying demand will hold up reasonably well.”
Nick also went on to say that over half (53%) of shoppers think that visiting stores is a good way to get into the festive experience.
“The run-up to Christmas is a great opportunity to get shoppers into stores and enthused about the physical shopping experience,” he said. “Those that can provide valued experiences while tapping into other underlying trends, such as local sourcing and ethical production, combined with attracting value-conscious shoppers, put themselves in a good position this festive season.”
