Retail executives are optimistic about Christmas 2024, predicting increased consumer spending driven by easing inflation.
- M&S and Tesco leaders express confidence in festive trading as early signs of consumer willingness to spend emerge.
- Forecasts suggest a 4% sales increase this Christmas, although economic challenges linger.
- Fashion retailers anticipate high demand for festive attire, with strong trends in burgundy clothing and novelty items.
- Beauty and grocery sectors expect significant holiday sales, with consumers spreading costs and shifting towards value brands.
The anticipation of Christmas 2024 brings a sense of optimism among UK retailers as easing inflation boosts consumer confidence. Leaders from major retailers like M&S and Tesco are “very confident” about the season, with early indicators showing a willingness to spend more on treats. Predictions suggest a 4% boost in sales, reaching £88.3 billion, with this growth partly due to a 1.4% rise in sales volume. Despite these positive signs, the shadow of the cost-of-living crisis and recent budget changes remain, prompting cautious spending among consumers.
In the fashion industry, M&S is optimistic about their festive offerings. Their seasonal clothing range, including sequins and capes, is performing well. José Antonio Ramos Calamonte of Asos acknowledges market volatility but notes better consumer confidence in recent months, especially as colder weather approaches. Economic constraints mean some consumers are opting for lower price points, and retailers like Matalan are responding by spreading spending opportunities, offering early Christmas promotions to meet consumer demand.
The health and beauty sector is preparing for a prosperous Black Friday, with significant discounts anticipated. Boots experienced high demand, causing their online platforms to crash. Superdrug, offering substantial discounts, expects peak trading around the Black Friday weekend, as consumers strategise their holiday spending to maximise value. The focus on value is expected to drive sales of own-brand gifts and popular items like electrical healthcare tools.
Grocery retailers are “betting on a good Christmas,” with Tesco and Sainsbury’s foreseeing increased spending on premium products and convenience-driven purchases. Customers are showing a preference for pre-ordering and purchasing premium Christmas fare early, further highlighting a shift towards treating themselves despite financial pressures. Aldi notes a trend of consumers seeking more luxurious options while spreading holiday costs over time.
Department stores are preparing for a busy Christmas with strong sales momentum from early holiday shopping. John Lewis reports a substantial increase in sales and investment in Christmas offerings. Fortnum & Mason highlights an earlier shopping season compared to previous years, as customers seek smaller, joyful experiences and beautifully crafted gifts rather than big-ticket items. The demand for experiences, such as theatre tickets, shows a growing interest in memorable gifts during challenging economic times.
Despite economic challenges, retailers are optimistic about a successful Christmas 2024, with consumers eager to celebrate and indulge.
