While Christmas 2020 remains challenging, experts predict promising consumers' festive spending

This Jewels and Jingles collection includes
velvet and sequin butterfly
on clip, and a selection of glass baubles
on a Highland blue tree,
all from Dobbies Garden Centres.

      It is great that the current lockdown in England is coming to an end and shops and non-essential retailers can open again as from 2nd December, albeit with covid-safety protocol in place.  But the disappointing news today is that two retail giants – the Acadia group and Debenhams are not able to survive, although their problems began even before the pandemic.  It is really the usual tale of only the fittest can survive as consumers are ever more discerning and continue to embrace online shopping.

     Administrators have been appointed to Sir Philip Green’s Arcadia (behind brands such as Dorothy Perkins, Topshop and Miss Selfridge) while Debenhams will now go into liquidation as JD Sports has walked away from potential takeover of Debenhams, which was founded in 1778 and is one of the oldest high street chains in the UK.

Nevertheless, shoppers will be happy that they can earnestly get into the Christmas spirit as latest research from market research expert Mintel reveals that most Brits are striving to have a good festive period with their spending  predicted to decline by just 0.4% compared to 2019.

Letterbox-friendly gift packs are ideal for online shoppers.  Here a new range for gardeners from suttons.co.uk, packaged to send directly to the recipient.  There are five themes of Vegetable Gerden Letterbox Gifts to choose from, each packed with a selection of seeds, sowing accessories, a gardener’s exfoliating hand soap and either a handy tool, themed accessory, or hand cream set.

Mintel expects retail sales in both November and December (both in-store and online food and non-food) to hit £81.7 billion, declining just 0.4% compared to last November and December when sales reached £82.0 billion. Sales through non-food retailers this November and December are expected to reach £33.3 billion. 

Online demand has soared since the COVID-19 pandemic, and is expected to make up a record level of sales during the Christmas period. Half (51%) of consumers say they plan to buy more Christmas gifts online this year, rising significantly among those aged 16-34 (58%) and falling a little among those over 55 (44%).  

Overall, Mintel estimates that internet pure players (online only retailers) will account for £15.7 billion worth of sales in November and December. This comes as almost three quarter (72%) of Brits plan to try to limit time in crowded areas before seeing their family at Christmas.

And it seems the festive period is proving to be more important than ever as 77% of grocery shoppers say it is important to have a good Christmas after the events of 2020. 

"The festive period is, for many consumers, a time to forget their worries and celebrate with loved ones."

Nick Carroll, Associate Director of Retail Research at Mintel, said: “The COVID-19 pandemic has polarised consumer finances. Some have been able to work throughout the outbreak and have seen some outgoing costs, such as travel, reduced, but many have seen incoming costs reduced, through furlough or lost jobs due to the pandemic. Irrespective of the scenario, households find themselves looking toward the uncertainty of 2021, particularly with the end to Government intervention in the job market. As a result, consumers have been less willing to spend since the pandemic hit and these fears will naturally be at play in the background of this festive period. 

“However, the festive period is, for many consumers, a time to forget their worries and celebrate with loved ones, and few years have limited consumers’ ability to do both like 2020. If, as we expect, rules are relaxed a little for the festive period***, customers will be wanting to make this Christmas as special as possible and purse strings are likely to be released more than they have been so far in 2020. Value will remain crucial but those that have been able to save during the pandemic may look to release some pent-up demand; while those who have been impacted financially will do what they can to ensure they can still make this festive period special.”

***The UK Government and devolved administrations have agreed a temporary relaxation of measures, which will allow three households to mix in a bubble from December 23 to 27.