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.

The Amazon effect - Nine in ten Brits shop on Amazon

British shoppers' love affair with online shopping is going from strength to strength and Amazon is now revealed to be the go-to retailer nine out of ten times.

The popularity of Amazon - the retail phenomenon which started in a garage and now, nearly a quarter of a century later - its success is unbelievable.  But believe it as new research from Mintel reveals that almost nine in ten (86%) Brits are Amazon users/shoppers. According to Mintel, more Amazon shoppers have increased their shopping (21%) with the retailer than decreased it (13%) over the past year. Overall, most (70%) Amazon customers shop with the retailer at least once a month, while just under a fifth (17%) use the retailer on a weekly basis.

In terms of what’s in the basket, hardcopy media (books, DVDs or video games) (39%) remains Amazon’s most popular purchases. This is followed by electricals (30%), fashion/jewellery (30%), and toys (20%). An impressive 45% of households in the UK have some form of Amazon produced device, with Kindle (23%), Fire TV/TV Stick (16%), Fire Tablet (14%), and Echo (11%) proving the most popular.

Inherent trust in this retail giant is confirmed by the fact that as many as half (51%) of Amazon users assume that the e-retailer has the cheapest prices, while six in ten (59%) say they are loyal to the company. What is more, 70% of Amazon shoppers say it is the first retailer they go to when shopping online.

Nick Carroll, Mintel Associate Director of Retail, said:

 

“Amazon is a phenomenon of 21st century retail. In a little over 20 years, it has grown to be a retailer that nearly all consumers use. It has achieved this through a relentless focus on customer-facing investment and innovation. Amazon started selling books, but now holds a significant share in almost all retail categories, helped by the incubation of thousands of independent sellers through its Marketplace scheme. The retail giant has expanded far past the bounds of normal retail operations into media streaming, consumer electronics and cloud computing. Amazon has built a platform that customers are both happy to use, and pay for the privilege of doing so via its various subscription services.”

“While most consumers already shop with Amazon, the retailer continues to gain market share by increasing the number of Prime members. That’s because Prime members buy significantly more, and across a broader number of categories, than non-members. This is why Amazon continues to add to the list of Prime-exclusive services, with Premier League matches coming in the second half of this year. Regardless of the reasons people join Prime - there is a net benefit for the retail side of the business,” Nick adds.

Amazon is not the high street killer

The impact of Amazon’s reach into the physical retail sector is confirmed by the fact that almost half (45%) of Amazon users believe that the e-tailer is responsible for physical stores closing. Meanwhile, three quarters (75%) of Amazon shoppers say they often check the prices of products they see in-store on Amazon. And physical retailers are probably being used as showrooms, as 70% of Amazon shoppers say they research products elsewhere but then buy via the site.

But while many acknowledge the negative impact of Amazon on the high street, some 40% of Amazon users believe it supports independent retailers and 29% believe that shopping via Amazon Smile is a good way to give to charity.

 

From sportswear to made-to-measure attire, Britain’s gents outperformed ladies in the realm of fashion.

Father’s Day will soon be upon us and as London Fashion Week taking hold in the capital these few days, the latest menswear research from Mintel reveals interesting fashion facts about the nation’s dedicated followers of fashion. 

From their love of sportswear to made-to-measure attire, last year Britain’s gents outperformed their female counterparts in the realm of fashion, according to Mintel's recent study.

The UK men’s clothing market grew by an estimated 3.5% in 2017 to reach a dapper £15.0 billion, as sales of menswear outperformed sales of womenswear. Nevertheless, menswear remains around half the size of the womenswear market which is valued at £28.4 billion, accounting for 26% of total clothing sales.

Making good strides, Mintel forecasts that menswear will grow by a stylish 11% between 2018 and 2022 to reach £17.1 billion. In 2018 alone, men’s clothing sales will grow by an estimated 2.9% to reach £15.4 billion.

When it comes to splashing the cash on fashion, men are proving to be the biggest spenders. Over half (53%) of men spent £50 or over on their last shopping trip, compared to only 39% of women. Male shoppers (18%) are also significantly more likely than women (12%) to have spent over £100.

Looking for the perfect fit, half (49%) of Britain’s male shoppers are interested in getting clothes tailored to their body shape. This comes as a third (33%) of men have returned clothes because they don’t fit well.

Proving quality counts, men are more likely than women to be prepared to spend more on quality clothes that last, with 70% of male shoppers agreeing with this, compared to 64% of female shoppers. The  importance of buying quality clothes rises to 76% of men aged 16-34.

Men are increasingly shopping around for clothing, with supermarkets and online-only retailers now particularly popular. Overall, 35% of men have bought clothes from a supermarket in the last year, whilst 35% have shopped with an online-only retailer.

Looking for ‘Mr. Average’, 27% of male shoppers aged 16-24 want the clothing retailers they shop at to use models that represent the average person, this compares to 16% of men on average.

They may be rich and famous, but it seems their influence may not extend too far, as Mintel research reveals that the use of a celebrity encourages less than one in ten (8%) men to shop with a specific retailer.

Winning the race, there has been a big increase in young men buying sportswear, as 29% of men bought sports clothing in the last three months*, compared to 19% in the three months to December 2016.

Over a third (34%) of male shoppers agree that positive product reviews would encourage them to shop with a specific retailer. This rises to almost half (49%) of men aged 25-34.

Bad experiences with delivery frustrate online shoppers

Bad experiences with delivery have been named by internet users as problems with online shopping, along with issues with collection as well as packaging wastage.

Market retail experts at Mintel reported that 62% of UK delivery users have experienced an issue with a delivery.

Mintel research reveals that a longer than estimated wait for delivery of products (30%) tops delivery users’ frustrations. This is followed by being unable to schedule a delivery for a convenient time (20%), deliveries being left in unsafe areas (18%) and damage to the content or packaging (17%).  Meanwhile, receiving incorrect products (12%) and difficulty arranging a re-delivery (12%) complete the nation’s top five delivery issues. Further down the list, one in 10 (8%) of those who use delivery most often say they have had a problem with unhelpful delivery personnel.

But it isn’t just delivery that is causing consumer angst, as collection is proving a cause for concern too.  Some 38% of Brits who have collected a product in the last 12 months have experienced a problem, with long queues (20%), unhelpful staff (12%) and out-of-stock products (10%) among the most common problems.

Nick Carroll, Senior Retail Analyst at Mintel, said:  “Online retail will continue to grow within the UK and with it the demands put on retail logistics. While instances of problems are lower among those who have collected a product, the issues users have reported seem avoidable from a retailer perspective. While a big positive of click-and-collect, from a multi-channel viewpoint, is that it allows store-based retailers to emphasise their brand traits when an online shopper comes into the store, if customers are faced with long queues, unhelpful staff or unavailable products, then the opportunity is lost and the benefits of coming into store are negated.”

Mintel estimates that the value of collection orders in the UK reached £9.5 billion in 2016, accounting for 18.5% of all online sales, with the market this year estimated to reach £11.8 billion, according to report published November 2017.

When asked which newer innovations in the delivery and collection market consumers would like to see become more widespread, evening home delivery (43%) tops the wish lists of those who use product delivery and collection.  While GPS tracking of orders (35%) and one-hour delivery slots (33%) complete the top three innovation interests.

Overall, 30% of delivery and collection users are interested in same-day delivery, with those aged 16-24 expressing the greatest interest in same-day delivery (41%). Despite this, the majority (87%) of users think that next-day delivery is quick enough for most purchases. Meanwhile, 46% of delivery and collection users say the ability to have products delivered before paying for them is appealing and a forward thinking one in 10 (8%) express an interest in drone delivery.

“Online retail shows no signs of slowing down and neither does the speed in which retailers are attempting to fulfil orders and how quickly consumers expect them to arrive.

“For leading online players, how they fullfil orders can be their defining quality, but there is evidence that speed is not necessarily everything; it is about offering a range of options to be flexible to consumers’ multifaceted demands.” Nick adds.

Meanwhile, 57% of users believe that retailers that sell online should offer a recycling service for old products.

Nick continues: “Consumers are becoming increasingly aware of how their consumption is affecting the environment. Greater online volumes that bring more waste packaging and delivery vehicles to serve the demand may see consumers more actively question how their shopping habits are affecting the environment. 

One way in which online retailers could limit this is to instigate a recycling service for old products. There are examples of store-based retailers who have introduced a recycling service at the store level and the majority of consumers seem to be in favour of online players taking a similar stance. This is a simple move, even if it is a logistical strain for the retailer to take. It could help reduce the impractically of excess packaging around the home, and encourage greater purchasing.” Nick concludes.