UK retailers hope for Christmas miracle as Brits reign in spending

Despite the ongoing cost of living crisis, 83% of Brits say it’s critical to support local high streets this festive season, with 87% citing the end of year sales as the most important commercial event of the year.

That’s according to a new research report, The Seasonal Shopping Snapshot, published by Ankorstore.

The company surveyed 570 independent retailers in the UK, France, Germany, Spain and Italy, and 2,000 UK consumers.

It found that 54% of British independent retailers are expecting an uptick in profits and sales volumes as they head into the festive shopping season, and 69% remain optimistic that consumers will continue to support their store in the months leading up to Christmas.

The reality, however, is that 41% of consumers are planning on buying fewer gifts for Christmas than they did last year, and 6% will buy no Christmas gifts at all. 

And it’s not just gifting that is being affected, with 60% of Brits admitting they will be spending less in shops and online due to rising costs, inflation and a pending recession. 

Millennials, in particular, are feeling the pinch, with 67% stating that they will be spending less on luxuries and commodities as the cost of living crisis continues. That being said, more shoppers are looking to buy local (66%), in hopes of supporting their wider community. 

Black Friday has become a mainstay of the British festive season, but this year in particular with rising inflation and consumers looking to cut back on their spending, will it do more harm than good, and will it provide the sales boost that independent retailers are hoping for?

If Amazon’s Prime Day sales are anything to go off, with spending tracking a typical day, consumers may have discount fatigue already.

Consumers plan for a paired back Black Friday with 37% of Brits not planning on buying anything this Cyber Week, and a further 22% planning on spending less this year than last.

Gen Z, however, could power the sales this year with 38% looking to spend more than they did last year, compared to the average of just 17%.

The number of independent retailers expected to take part has increased by a fifth compared to last year, with 56% saying they will be participating next month. This may pay off as consumers are still planning to spend an average of £201.80 during the sales, even if it is less than last year, with that figure rising to £245.10 for men.

Two thirds of Brits who feel it’s important to support their local high street do so as they like to back their local community, whilst 54% state they do so for its convenience and a further 31% as it’s more sustainable. 

55% say that quality is the most important attribute when it comes to finding the right present, with sustainability (30%), locally sourced (18%) and cruelty free (14%) also notable considerations.

Mary Portas, British retail expert and broadcaster, comments: “People know how critical it is to shop local. A whopping 83% of them. Independent retail has been through the ringer in recent years but most of us know we’ve got to do our bit to support it.”

“Thriving retail help us all. Busy local high streets provide community and connection. Online retail provides employment, inspiration – and a whole heap of products that you don’t get in brands with a thousand stores. Let’s spend our money wisely this Christmas.”

Tarun Gidoomal, UK General Manager at Ankorstore, says: “Whilst Black Friday is widely regarded as a critical sales moment for British retail, the question remains: will Black Friday be a short-term sales saviour, or do independent retailers feel pressured into offering unsustainable discounts to compete against larger chains?”

“Ultimately, what makes British independent retailers so special is their uniqueness. There is no ‘one size fits all’. 24% more independent retailers are planning on running Black Friday discounts this year (56%, up from 45% in 2021), but others are not participating as they believe that it's not right for their business.”

Ankorstore is launching what is pitched as the first ‘Independent Black Friday’ across Europe this month, offering independent retailers a discount of up to 50% on over 30,000 brands to stock their stores ahead of the shopping season.

The company says that this will “pass the discounted savings directly onto the consumer rather than forcing retailers to cut profits”.

The sale will run from 17th – 26th October.