UK Retail Performance: Christmas 2010 Trading Review
Christmas 2010 was set against a backdrop of higher unemployment due to government spending cuts, the prospect of higher taxes including a rise in VAT to 20.0% in January 2011, and inflation in household expenses, then heavy snow disrupted the key December trading period. Despite this the majority of retailers' trading updates were positive - find out why.
Features and benefits
- The like-for-like and total growth in Q4 and Dec 2010 of over 50 retailers analysed and compared with 2009
- Five year growth trends by sector and channel; department stores, health & beauty, clothing, electricals, home, books, music, food & grocery.
The standout winners were the premium niche, and luxury brands, while the value retailers, like their customers, were suffering. Online is essential at this period and having a multi channel operation is vital for physical retailers' success.
Your key questions answered
- Who were the winning and losing retailers & sectors in Q4 2010, and why?
- What trends emerged from retailers' trading updates and what is the forecast for 2011?
Table of contentsSUMMARY
Majority of retailers reported growing sales despite the weather;
Global luxury and niche premium brands lead;
Value retailers suffer along with their customers;
Supermarkets losing some of their Christmas sparkle as inflation softens;
Online still a winner, but weakens store performance;
Past decade of Q4 growth on a downward trend;
2011 will be difficult as inflation becomes entrenched.
Winners are online and niche premium
UK RETAIL TRADING UPDATES CHRISTMAS 2010
Strong growth reported, but total retail subdued
Methodology and median growth
Books, music & video
Specialists in decline as online takes over
Clothing & footwear
Value retailers' customers feel the pinch
House of Fraser and John Lewis drive strong growth in sector
Tough season for specialists
Food & grocery
Softer inflation reduces high growth of recent years
Health & beauty
Strong sector but tough for specialists
Challenged sector defends margins
Space growth rather than like-for-like growth drives sales
Like-for-like performance December and Q4
More winners than losers
Total sales performance December and Q4
Even fewer losers
Ask the analyst
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