Indies expect profits and sales upturn as expert tells shoppers to support High Street
Retailers are hoping for a very Mary Christmas with more than half of independent retailers expecting an upturn in profits and sales volumes heading into the festive shopping season, as retail expert Mary Portas tells folk to shop local.
And Ankorstore’s new research, The Seasonal Shopping Snapshot, also reveals that 69% of British indies remain optimistic that consumers will continue to support their store in the months leading up to Christmas.
The report, published by the European curated marketplace and endorsed by industry expert Mary Portas, analyses both sides when it comes to consumer spending this Black Friday and festive shopping season – and 87% of indies cite the end-of-year sales as their top commercial event, while 83% of shoppers believe it’s more important than ever to support their local High Street.
The Snapshot is taken from the Future Of Independent British Retail report commissioned by Ankorstore, and Mary said: “People know how critical it is to shop local – a whopping 83% of them. Independent retail has been through the wringer in recent years but most of us know we’ve got to do our bit to support it.
“Thriving retail helps us all. Busy local High Streets provide community and connection. Online retail provides employment, inspiration – and a whole heap of products that you don’t get in brands with a thousand stores. Let’s spend our money wisely this Christmas.”
And Mary is joining Ankorstore and Retail Gazette for an hour’s live online webinar at 2pm on 9 November, focusing on predictions for High Street habits in 2023, the rise of community spirit, retail’s biggest 2023 dates, the impact of the current economic downturn on indies, and consumers’ sustainability-first purchasing.
Ankorstore conducted research with 570 independent retailers in the UK, France, Germany, and Italy in August and September, as well as using Vitreous World to carry out a two-week British online survey in August including 2,200 consumer respondents and 200 UK SME business owners in retail – including Priya and Dominic Aurora-Crowe, owners of small London greeting card and gift chain Lark.
While retailers are optimistic following the recent upturn in bricks-and-mortar shopping, the data suggests many Brits should expect fewer presents under the tree this year, as 41% of consumers are planning on buying fewer gifts for Christmas than they did last year, and 6% are planning to buy none at all. And it’s not just gifting that’s being affected, with 60% of Brits admitting they will be spending less in shops and online due to rising costs, inflation and a pending recession.
Millennials, in particular, showed they are feeling the pinch, with 67% stating they will be spending less on luxuries and commodities as the cost-of-living crisis continues, however, more shoppers are looking to buy local (66%), in the hope of supporting their wider community, while 54% state they do so for its convenience and a further 31% as they see it as more sustainable.
Over half of Brits (55%) said quality is the most important attribute when it comes to finding the right present, with other notable considerations being sustainability (30%), locally-sourced (18%) and cruelty-free (14%).
Brits ultimately want a world where independent retailers and businesses – the backbone of the UK economy – can not only survive, but also thrive and grow.
In relation to year’s Black Friday, the number of independent retailers expected to take part has increased by 24% compared to last year, with 56% saying they will be participating in the sales event next month.
While consumers are planning to spend an average of £201.80 during the sales, rising to £245.10 for men, that is a little down on last year’s numbers as 37% of Brits are not planning on buying anything this year’s Cyber Week, with a further 22% planning on spending less than in 2021.
Tarun Gidoomal, Ankorstore’s UK general manager, commented: “While Black Friday is widely regarded as a critical sales moment for British retail, the question remains, will it be a short-term sales saviour, or do independent retailers feel pressured into offering unsustainable discounts to compete against larger chains?
“Ultimately, what makes British independent retailers so special is their uniqueness. There is no one size fits all – 24% more independent retailers are planning on running Black Friday discounts this year at 56%, up from 45% in 2021, but others aren’t participating as they believe it’s not right for their business.
“Our mission has always been to empower retailers to make the choices that are right for them. That’s why we’re here to support those independent retailers during this period by lowering our prices, which retailers can pass on to their customers in the form of Black Friday sales, or simply keep extra margin. With consumers feeling the squeeze, it must not just be on their shoulders to support our essential retail sector, and I implore the government to explore new ideas to breathe life back into our British High Streets.”
When looking at festive retail trends across Europe, a huge 80% of retailers say they are facing reduced consumer spending power, citing an increase in energy prices (46%) and increased competition from big chains and e-commerce websites (43%) as dampeners on sales.
Interestingly, whether you’re a retailer in the UK, Germany, France, Spain or Italy, the majority refer to the same strategies to combat these challenges and save money, with 63% across Europe planning to reduce energy consumption by cutting back on heating and not illuminating shops at night, with 54% doubling down on their communication strategies via social media and flyers to encourage existing and new customers to shop, and 47% will limit stock buying and storage, by restocking last minute.
Top: Mary Portas is working with Ankorstore
