industry news Poor Christmas retail figures blamed on desire to consume less


Christmas high street and supermarket sales figures are coming thick and fast and the picture looks bleak for many retailers, while the British Retail Consortium is saying last year was the worst for retail in 25 years. Dr Gordon Fletcher, retail expert at the University of Salford Business School, has looked at what might be going on and says it’s about more than just competition from online, we may just be consuming less.


Dr Fletcher said: “With the annual round of Christmas trading results come in from high street retailers there is a familiar tone. There has been another drop in sales as predictions have not even met last year’s poor results, let alone the buoyant figures that could be expected in the days before e-commerce.


“This year’s numbers also hint to a new factor in the evolving high street story.


Are consumers changing and to an extent consuming less? The results from Morrisons show declines in their sales of food and drinks and positions them as the worst performing of the supermarkets.


“The resignation of John Lewis managing director also points to a tough progress with the group’s reorganisation, which includes Waitrose. The business model of the supermarket or the department store hosting rows of mass consumption brands is proving ever less popular for better informed, resource- aware, climate-conscious consumers. “In previous year’s, explanations for poor Christmas trading figures have been levelled at the competitive clothing sector or in areas such as toys and household items. And this remains the reason given for Sainsbury’s lower results closely linked to its ownership of Argos. The decision of retailers to avoid heavy


Strong growth in November, says HTA


2019 has been a successful year of growth for garden centres nationally, with overall November sales up 10% compared with the same month in 2018 according to the latest HTA Market Update report.


Houseplants saw an increase of 41% compared to November last year, the Lifestyle & Gifts category was up 12%, and Christmas sales were up 9% in month to month comparisons between November 2018 and November 2019. This year’s November was 2°C colder than November 2018 with changeable rainfall across the UK, likely affecting growing media and hardy plant sales. The report also highlights that consumer confidence remained flat with a score of -14 in November, which is one point lower than November last year as consumers wait for clarity on the future of the UK. However, post-election in mid-December, GfK reported a sharp increase in optimism for the coming year, likely to influence purchasing behaviours.


6 | www.gardencentreupdate.com


discounting among the big retailer has prevented results from being even worse. “Tesco’s results even show slight growth, primarily because of the performance of Booker Cash and Carry stores. This brings further evidence to the change in consumer behaviour where wholesale equates to bulk purchases and even a return to a preference for the model of the traditional drysalter, where goods are sold by weight and taken home in the consumer’s own containers.


“Poor results at the supermarkets do suggest that we are actively and collectively consuming less during the festive season. It is more conjecture as to whether Britain is just trying to pocket the savings, was simply enthralled into inaction by the unfolding politic drama or applying themselves to more active and healthy lifestyles in the surprisingly warm winter months.”


NEWS IN BRIEF


• Former BBC chief news correspondent Kate Adie CBE was a guest speaker at the Garden Centre Association’s (GCA) annual conference in Bristol on January 26-29


• Notcutts Pride Garden Centre in Ditchling, East Sussex, has opened a new restaurant with dining for up to 300 people.


• GIMA’s Knowledge Exchange programme will begin 2020 with the return of the ‘Developing Selling Skills’ session.


• Wildlife World, a European designer and manufacturer of wildlife products have appointed Mark Pitman to its management team, who joins the business in January 2020 to lead their marketing team.


• Despite Boxing Day traditionally being a key date in the diary for sale-savvy shoppers, research shows that the majority of UK consumers (92%) support retailers who choose to keep their doors closed on Boxing Day, a move also welcomed by retail staff. In light of this, Homebase remained closed on Boxing Day.


GCU January/February 2020


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