- According to the research sales over the festive period could reach £48.7bn
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New research from Mintel has forecasted positive sales for British retailers this Christmas. The leading market intelligence agency predicts that retail sales in December will reach £48.7bn, an increase of 3.8% when compared to the same month last year, when sales hit £46.9bn. It’s estimated that food retailers will be enjoying sales of £18.8bn, including £1.4bn from online sales generated by bricks-and-mortar stores.
Nick Carroll, associate director of Retail Research at Mintel, says, “We’re forecasting that December will result in steady growth for the retail sector. 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.
“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. Customers will, of course, be looking for value, and with fewer days between Black Friday and Christmas this year retailers’ margins may be particularly stretched.
“Although high-street retailers may be under pressure, over-half (53%) of shoppers think visiting stores is a good way to get into the festive experience. Therefore the run-up to Christmas is a great opportunity to get shoppers into stores and enthused about the physical shopping experience. Those that can provide valued experiences whilst 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.”
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