Following Ankorstore’s latest report, The Seasonal Shopping Snapshot, some 69% of British independent retailers remain optimistic that consumers will continue to support their stores in the months leading up to Christmas, with the report endorsed by Mary Portas, who continues to encourage people to shop local.
Among the gift retailers taking part in the survey were Priya Aurora-Crowe and Dominic Crowe, co-owners of independent gift and lifestyle multiple Lark, which has 12 stores in and around South and West London.
The Seasonal Shopping Snapshot is taken from the Future of Independent British Retail report, commissioned by Ankorstore, (Europe’s largest online wholesale marketplace), and industry expert Mary Portas, who commented: “people know how critical it is to shop local – a whopping 83% of them. Independent retail has been through the wringer in recent years but most of us know we’ve got to do our bit to support it.”
She adds: “thriving retail helps 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.”
While retailers said that they were optimistic following the recent upturn in bricks-and-mortar shopping, the data suggests many Brits should expect fewer presents under the tree this year, as 41% of consumers are planning on buying fewer gifts for Christmas than they did last year, with 6% planning to buy none at all. And it’s not only gifting that’s 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, showed they are feeling the pinch, with 67% stating they will be spending less on luxuries and commodities as the cost-of-living crisis continues. However, more shoppers are looking to buy local (66%), in the hope of supporting their wider community, while 54% state they do so for its convenience. A further 31% see it as more sustainable.
Over half of Brits, (55%), said quality is the most important attribute when finding the right present, with other notable considerations were sustainability (30%), locally-sourced (18%) and cruelty-free (14%).
As for this month’s Black Friday, the number of independent retailers expected to take part has increased by 24% compared to last year, with 56% saying they will be participating. While consumers are planning to spend an average of £201.80 during the sales, rising to £245.10 for men, the figures are slightly down on last year’s numbers. Some 37% of Brits are not planning on buying anything during this year’s Cyber Week, with a further 22% planning on spending less than in 2021.
Tarun Gidoomal, Ankorstore’s UK general manager, commented: “While Black Friday is widely regarded as a critical sales moment for British retail, the question remains, will it be a short-term sales saviour, or do independent retailers feel pressured into offering unsustainable discounts to compete against larger chains?”
He continued: “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 at 56%, up from 45% in 2021, but others aren’t participating as they believe it’s not right for their business.
“Our mission has always been to empower retailers to make the choices that are right for them. That’s why we’re here to support those independent retailers during this period by lowering our prices, which retailers can pass on to their customers in the form of Black Friday sales, or simply keep extra margin. With consumers feeling the squeeze, it must not just be on their shoulders to support our essential retail sector, and I implore the government to explore new ideas to breathe life back into our British high streets.”
When looking at festive retail trends across Europe, a huge 80% of retailers say they are facing reduced consumer spending power, citing an increase in energy prices (46%) and increased competition from big chains and e-commerce websites (43%) as dampeners on sales.
Interestingly, whether a retailer in the UK, Germany, France, Spain or Italy, the majority refer to the same strategies to combat these challenges and save money, with 63% across Europe planning to reduce energy consumption by cutting back on heating and not illuminating shops at night, with 54% doubling down on their communication strategies via social media and flyers to encourage existing and new customers to shop. Some 47% will limit stock buying and storage, by restocking last minute.
Following on from the research, Mary Portas will be joining Ankorstore and Retail Gazette for a live online webinar from 2-3pm on Wednesday 9 November.
The webinar will focus on predictions for high street habits in 2023; the rise of community spirit; retail’s biggest 2023 dates; the impact of the current economic downturn on indies, and consumers’ sustainability-first purchasing.
Ankorstore conducted its research with 570 independent retailers in the UK, France, Germany, and Italy in August and September, as well as using Vitreous World to carry out a two week British online survey in August, to include 2,200 consumer respondents and 200 UK SME business owners in retail.
Top: Ankorstore has published ‘The Seasonal Shopping Snapshot Report’, which has been endorsed by retail expert Mary Portas.
