christmas sales report 2013-14

FSP RETAIL BUSINESS CONSULTANTS

Christmas Sales Report 8 January 2014

2 FSP Christmas Sales Report - 8 January 2014 FSP RETAIL BUSINESS CONSULTANTS

Comment Differentiating the best With a prophetic touch, FSP’s Christmas commentary this time last year ended with “Undoubtedly as more results are published, we will see the strength of those who already recognise that bricks & mortar are as much a support for the online process as profit centres in their own right.” John Lewis and House of Fraser are crediting an overall increase in sales to online purchases, so it seems the only way is mobile. Interestingly, with like-for-likes up for both retailers, people must be topping up when they collect (although this could be more to do with the obfuscation surrounding like-for-like calculations) One wonders what sort of doldrums Debenhams might be in without their online sales increasing by 27% in the 17 weeks to December 28th, and contributing 15.6% of their overall sales figure. They’re obviously just playing on swings and roundabouts, with clicks benefiting at the expense of bricks. Or are they just suffering from the squeezed middle whilst House of Fraser benefits from its designer names? Next, on the other hand, despite also focusing on the middle of the market, is no longer plodding along, ending the year with such a performance that it has raised its profit forecast These have been the high profile stories so far, so what of the rest? There was a general consensus that Christmas 2013 would be better. With last year’s comparable time finding Christmas Eve on a Monday, with the consequence of last minute shopping before that day being squashed into a mere six hours, achieving something better this year should have almost been inevitable. But some retailers got cold feet and started discounting before Christmas. Did this give them the boost in sales they wanted? Or was it a desperate ploy from those falling further off the pace with each passing day? After all, if you bagged a bargain before Christmas, might you now not be bothered with “sale” shopping again? We believe that trust has played a big part this Christmas. Shoppers like retailers they can trust to deliver their online purchases, trust that what they have clicked can be collected and trust that the retailer will not renege on the deal by discounting early and devaluing their prized Christmas purchase before true sale time. John Lewis, House of Fraser, Next and Jigsaw, didn’t betray that trust. With kind regards Jo Hewson Managing Director, FSP [email protected]

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All Retailers Many retailers are yet to report on their trading over the festive period. Not surprisingly, those already reporting their news are showing a positive picture (note that Debenhams is not included as their reporting period is significantly more than covering Christmas) Future editions of the FSP Christmas Sales Report will break down the retailers into their Merchandise Groups, however, with currently so little to report, the data are only shown in the All Retailers graph below.


Christmas Trading and Administrations Christmas 2012 had its fair share of retail failures (Gio-Goi, Blockbuster, Fopp, HMV, Happit, Jessops, Mostyns, Punky Fish), although, in the most part, these companies were rescued and some continue to trade. With the extirpation of the flounderers in recent years, there should be few unhealthy enough not to survive the challenges presented by the fickle shopper, but with the retail landscape forever changing, can even the stalwarts of the UK High Street survive? FSP’s retailer database currently shows no retail casualties over the festive period, although Base Menswear have filed a notice of intention to appoint administrators

The number of retailers recorded on SnapShop entering administration in each of the past few years is: 2013 – 43 2012 – 44 2011 – 57 2010 – 42 2009 – 93 2008 – 56


Future Editions The FSP Christmas Sales Report will be updated throughout January - next update will be issued on 15th January 2014. Future editions will include graphical representation under the following headings:

3 year comparison Merchandise Groups:

– Department Stores – Personal Goods – Clothing & Footwear – Household Goods – Leisure Goods – Grocery – Food & Beverage – Online Sales

FSP Christmas Sales Report Methodology

FSP seeks to gain an accurate review of the Christmas period, hence the period end date must be at least Christmas Eve and no later than the end of January; the period must be 13 weeks or less.

Online Sales are always shown as Total changes. Graphs are ranked in order, highest to lowest, first by Like-for-Like change, then by Total change

www.fspretail.com

FSP has gone to its best efforts to ensure this data is correct but the author reserves the right not to be responsible for the accuracy

of information provided.

http://www.fspretail.com/

FSP RETAIL BUSINESS CONSULTANTS 19 Manor Courtyard Hughenhen Avenue High Wycombe UK, HP13 5RE T +44(0)1494 474740 F +44(0)1494 474262 [email protected] www.fspretail.com www.snap-shop.co.uk

Heidi Roberts Associate Director T +44(0)1494 474740 F +44(0)1494 474262

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Tanu Bajaj Business Analyst T +44(0)1494 474740 F +44(0)1494 474262

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