The Countdown to Christmas: Why November kicks off the busiest time of the year for retailers and shopping centres.
With November now upon us, retailers and shopping centres are gearing up for the most critical period of the year, the countdown to Christmas.
Christmas decorations, Christmas light switch on events, extended hours and special promotions are all high on the priority list this month, as well as making good profits.
As we know, the festive season isn’t just about high footfall, it’s a lifeline for many businesses. For most retailers, November and December bring in a significant proportion of their annual revenue due to demands for gifts, decorations, festive food and Christmas partywear. Despite the British Retail Consortium reporting that consumer confidence fell significantly in September, consumers are expected to spend well, both in-store and online over the coming months. Retailers and shopping centres are therefore pulling out all the stops to attract shoppers and to create a magical experience.
Retailer experiences:
This time of year is very much ‘all hands on deck’ for retail workers and shopping centre staff. Many retailers hire seasonal staff to help manage the influx of customers and to achieve the highest level of customer service. Food operators last month announced a huge recruitment drive this festive season. Tesco announced a recruitment drive of 26,000 seasonal staff, Sainsbury’s are hiring 20,000 seasonal staff, M&S have announced they’re employing 11,000 Christmas roles, Aldi’s recruitment drive will seek 3,500 workers and Morrison’s are also on board recruiting 3,000 seasonal workers. Superdrug has also announced its plans to employ 1,000 seasonal staff this year – all to support company growth and strong performance.
Events:
For me, events are the launch and overall magical experience of Christmas. The Christmas lights switch-on events mark the official ‘launch’ of Christmas and it is always wonderful to see families and little ones come together, to join in with the countdown and festivities. For many shopping centres and town centre management teams, pulling large-scale events together is no easy task. Battersea Power Station always deliver beautiful events and Manchester city centre over the years have expanded its festive markets. Expertise, experience, and external funding is quite often needed to create an impact and a memorable, safe experience for all.
However, Christmas launch events are just the beginning, and are frequently followed by Christmas markets, winter wonderlands, festive films, ice rinks, light shows, brass bands, and carol singing, and the list goes on….
Events are key to any shopping destination in order to create vibrancy, drive footfall, increase dwell time and to provide customers with a sense of experience, something that cannot easily be achieved online during this key period. The aroma and atmosphere of a Christmas Market and a countdown to a light switch-on event simply cannot be experienced the same online.
Decorations:
Christmas decorations have the power to completely transform a space by creating a festive, warm and inviting atmosphere. Spectacular displays can create a real ‘wow’ factor and can attract visitors from far and wide. Traditional and modern displays can also have the same impact when done well – and lighting can play a big part in this. It is encouraged for places not to economise too much on decorations, especially when they can really make a destination stand out, create brand awareness and generate customer loyalty. Take a look at Regent Street and Fortnum and Mason’s Christmas decorations. Be creative, splash out, and stand out!
Marketing:
In an ever-evolving environment, retailers need to be able to engage with different types of customers, who have different budgets. A strong marketing campaign during the golden quarter is key, with many shopping centres and retailers spending a large proportion of their budget during this quarter.
From the 7th of November, we should start to see the anticipated Christmas TV adverts by well-known retailers, all put together to entice customers into their stores. And as Christmas falls on a Wednesday this year, there is a more convenient and fitting time to shop for those extra last-minute essentials.
Black Friday and Cyber Monday:
Despite being a US phenomenon, Black Friday continues to grow in the UK. [1]In 2023, total Black Friday sales reached an impressive £13.3 billion, marking a +7.3% increase from the previous year. Breaking down the UK sales further are:
· Online sales: £4.81 billon
· In-store sales: £3.93 billion
Black Friday is a great opportunity for businesses to:
1. Boost sales
2. Acquire new customers
3. Clear out stock
And with ongoing inflation, cost of living crisis and difficult budget announcements by the new Government, shoppers are becoming increasingly price-sensitive. [2]In the UK, over half of shoppers (52%) relied more on promotions due to financial concerns and the forecast for this year, is that 63% believe they can still achieve sale prices if they shop around.
While 72.3% of shoppers utilise a mix of online and in-store shopping, Black Friday and Cyber Monday initiatives are fantastic opportunities for retailers to encourage as many customers as possible, who have made an online purchase, to collect in-store. This opens up strong opportunities to create an in-store experience, gain new customers and up-sell.
According to Fiona Briggs marketing expert, the [3]top gifts this Christmas are:
1. Clothing and accessories: 69.9%
2. Toys and games: 59%
3. Books and media: 47%
4. Electronics: 28.9%
Experiences (50.6%) and gift cards (57.8%) also remain popular choices with sustainability, accessibility and convenience also playing integral roles in shaping consumer spending.
Shop Local:
And let us not forget to shop local and support local businesses this Christmas. Independent businesses preserve the identity and economic health of our high streets and in a recent survey by High Street Positives run in partnership with Find Out Now, it was outlined that 53% (of 53,000 surveyed), want to see more independent shops in their local areas. Therefore, let's not only celebrate ‘Small Business Saturday’, on the 7th of December, let's celebrate and support them all year - creating new shopping habits that make a difference.
Whether you’re an early shopper or a last-minute bargain hunter, happy shopping everyone!
Until next time,
Medi