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Christmas on the high street: 'steady but unspectacular' trading reported | Christmas on the high street: 'steady but unspectacular' trading reported |
(about 1 hour later) | |
Big discounts in the Christmas shopping rush were harder to find this year as high street chains fought to protect their margins, a report said on Monday. | Big discounts in the Christmas shopping rush were harder to find this year as high street chains fought to protect their margins, a report said on Monday. |
Combined with the continuing caution of UK consumers, business advisory firm BDO's December sales tracker points to "steady but unspectacular" trading. | |
The report, which studies like-for-like spending at non-grocery retailers with annual sales of between £5m and £500m, showed sales growth of 1.9% on a year earlier, despite a drop of 3.7% in the week to 16 December. | The report, which studies like-for-like spending at non-grocery retailers with annual sales of between £5m and £500m, showed sales growth of 1.9% on a year earlier, despite a drop of 3.7% in the week to 16 December. |
BDO said tighter stock planning and better strategies for discounting meant firms were able to achieve an improvement in margins on a year earlier. | BDO said tighter stock planning and better strategies for discounting meant firms were able to achieve an improvement in margins on a year earlier. |
The report said: "Although experiencing relatively modest year-on-year sales rises, many retailers will still count December as a success." | The report said: "Although experiencing relatively modest year-on-year sales rises, many retailers will still count December as a success." |
Non-fashion was the strongest sector, with growth of 7.1% thanks to increased sales of Christmas 'gifting' items from well-established brands and stores. Fashion sales were flat year-on-year due to poor weather and strong figures for the same period a year earlier. | Non-fashion was the strongest sector, with growth of 7.1% thanks to increased sales of Christmas 'gifting' items from well-established brands and stores. Fashion sales were flat year-on-year due to poor weather and strong figures for the same period a year earlier. |
Much of the growth came from the internet, with BDO reporting a 30.9% year-on-year rise in non-store sales as shoppers became ever more comfortable with online purchasing – especially from big name brands – as well as making use of growing wi-fi and 4G coverage to pick up bargains while on the move. | Much of the growth came from the internet, with BDO reporting a 30.9% year-on-year rise in non-store sales as shoppers became ever more comfortable with online purchasing – especially from big name brands – as well as making use of growing wi-fi and 4G coverage to pick up bargains while on the move. |
BDO's national head of retail, Don Williams, said: "Last year we saw several stores having to slash prices to levels that really hit their profits after getting caught with too much stock. | |
"This year there has been a clear focus on protecting margins. By building up to Christmas early in a planned and measured way there has been less knee-jerk discounting. | "This year there has been a clear focus on protecting margins. By building up to Christmas early in a planned and measured way there has been less knee-jerk discounting. |
"At the same time consumers are continuing to feel the pinch of hard economic conditions and are being much more careful about when and where they spend their money." | "At the same time consumers are continuing to feel the pinch of hard economic conditions and are being much more careful about when and where they spend their money." |
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