FSP Christmas Sales Report

Christmas 2015
Issue 1 - 8 January 2016

FSP RETAIL BUSINESS CONSULTANTS

Comment: Plus a change

In FSPs report on Christmas Sales in 2014, we questioned whether Black Friday does anything but shift sales to earlier in
the year and cut margins, we noted the effect of the mild winter, we saw retailers heavily reliant on online sales and we
recorded M&S not doing very well.
Is this year any different? In a word, no.
Currently, available data on which to comment is limited as retailers absorb the implications of trading over the festive
season and decide how to present them. However, as normal we shall update our report for you throughout January. The
usual picture is likely to emerge. We will see winners and losers, the strongest getting stronger and the weakest eroding
their margins further to grab that sale. But on the back of a year of positive consumer confidence, Christmas 2015 was
again a success for those with a strong and well-balanced multi-channel offer, good customer service and a value or
distinctive product.
The biggest difference now appears to be not whether we shop, but how we shop. It didnt actually feel like Christmas,
shopping in shirtsleeves, whilst elongated sales on the back of Black Friday did nothing to inspire the festive spirit. Hardly
surprising that Notonthehighstreet.com delivered growth of 25% in total transaction value in the lead-up to Christmas.
With savvy consumers seeking innovation, ease of mobile ordering and exceptional value the winners were those who
could either offer the latest gadget or an integrated shopping solution. Wearable technology outstripped wearable anything
else except, perhaps, wellies, whilst Jigsaws responsive website helped push online sales up 31% over last year.
Its not all about online though and the off-price stores and value end of the market treated Christmas as normal a market
to be exploited. Aldi and Lidl saw pre-Christmas growth, which probably continued with their festive offers of value finedining whilst, by contrast, Waitrose saw like-for-like sales down over the Christmas period for the first time since FSP
started recording Christmas Sales. The competition for festive grocery shoppers drove grocery prices to their cheapest in
over a year and 1% lower than those seen in November.
(cont over)
2

January 8, 2016

FSP RETAIL BUSINESS CONSULTANTS

Comment: Plus a change (continued)

Add in the painful experience of pre-Christmas purchases being returned and re-bought at a lower price, and the ever
fateful rent quarter day, we wont be surprised if this year bucks the recent trend of almost casualty-free Christmases and
well start to see the weaker retailers fall by the wayside.
As retailers take stock, its good to know that in-store retailing is not completely dead. Most retailers recognise the
inevitable attrition of internet sales and the best are addressing this by ensuring that in-store sales staff are provided with
ammunition to persuade shoppers to buy at point of sale where possible (excellent staff training, special offers etc)
essentially, all the elements needed to offer a great instore experience. This even applies in the cut-throat electrical
industry where incentivised selling is a thing of the past in some of the largest retailers and the efforts of sales staff are
focused on ensuring that shoppers benefit from detailed advice whether the final sale is on the internet or instore. FSP
remains convinced that bricks and mortar selling retains its relevance going forward but recognises that retailers will
increasingly need to rationalise their retail portfolios to optimise performance across both physical and virtual networks.
This will form the subject of a forthcoming FSP blog but meanwhile we will keep you all updated on Christmas reporting as
it unfolds.

January 8, 2016

FSP RETAIL BUSINESS CONSULTANTS

Like-for-Like Averages by Group

Individual categories will be detailed in future
editions of this report

Number of retailers by category in this sample:

Food & Beverage
Department Stores
Household
Leisure
Grocery
Clothing & Footwear
Personal

January 8, 2016

2013/14 2014/15 2015/16

7
5
0
7
6
2
7
7
3
6
7
3
11
12
4
14
15
5
6
7
6

FSP RETAIL BUSINESS CONSULTANTS

All Retailers
Many retailers are yet to report
on their trading over the festive
period.
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.

January 8, 2016

FSP RETAIL BUSINESS CONSULTANTS

Christmas Trading and Administrations

FSP records Christmas casualties as those
who fail during the key period of Christmas Eve
to the middle of January. Things have looked
much brighter in recent years, although last
year was slightly marred when Bank failed
whilst the administration of USC was just a
restructuring exercise.
The number of retailers recorded on SnapShop
entering administration in each of the past few
years is:
2015 4
2014 9
2013 43
2012 44
2011 57
2010 42
2009 93
2008 56

January 8, 2016

FSP RETAIL BUSINESS CONSULTANTS

Future Editions
The FSP Christmas Sales Report will be updated throughout January. 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
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.

January 8, 2016

FSP RETAIL BUSINESS CONSULTANTS

Heidi Roberts
Scribe

Tanu Bajaj
Wizard

Bekki Bedford
Guru

FSP RETAIL BUSINESS

CONSULTANTS

T+44(0)1494 474740
M+44(0)7495 899827
F+44(0)1494 474262

T+44(0)1494 474740
F+44(0)1494 474262

T+44(0)1494 474740
F+44(0)1494 474262

19 Manor Courtyard
Hughenden Avenue
High Wycombe
UK, HP13 5RE

Heidi@fspretail.com

Tanu@fspretail.com

Bekki@fspretail.com

T +44(0)1494 474740
F +44(0)1494 474262
fspretail@fspretail.com
www.fspretail.com
www.snap-shop.co.uk