With rising inflation, increasing energy and fuel costs, as well as the war in Ukraine, how have gift retailers found the year so far, and what are their concerns as we transition into the second half of 2022? It’s the question GiftsandHom.net asked three gift indies.
“As hard as the economy is for everyone at the moment, with everything going up – including all our prices, import charges etc – we aren’t seeing a major downturn,” states Rachel Roberts, owner of Wishlist in Rayleigh. “I think people are very much supporting independents like ours, and shopping/staying close to home. Customers want unique, fun, colourful, meaningful gifts and love newness and variety. We continue to push on social platforms, as WFH still means people are forever checking up on exciting new products. And our own exciting news is that we are expanding and opening another store. Therefore, so far, ‘shop small’ is continuing to thrive.”
Jo Barber, owner of No. 14 Ampthill, Ampthill, adds:
“there’s no point making comparisons against previous years, but compared to 2019, it’s going well, really well … for now. Valentine’s and Mother’s Day were both well above our forecast and customers are still crazy about making their house a home. Home accessories are flying out, and our best sellers continue to be faux plants and stems, crockery, planters and home fragrance.”
However, Jo says that she is taking nothing for granted. “Each week, I wonder if we’ll start to see changes in shopping habits, as the media are reporting on the cost of living every day, so if customers weren’t feeling cautious, they soon will,” she points out. “And although we haven’t seen a downturn yet, I think it’s only a matter of time. One shift we have seen though, is perceived value. Customers now deliberate more over price, and the £29.99 handbag is starting to win over the usual £39.99 best seller. They’re also gravitating towards greeting cards that retail under the £3 price point and candles at under £15. Looking ahead, I think it would be wise to order little and often. It will mean more work, but also, I won’t miss out on special offers and promotions.”
In Scotland, Helen Crawford, owner of Old School Beauly in Beauly, reports that tourism is a major factor in driving sales. “Like many retailers, we’ve been pegging our first quarter sales against like for like dates in 2019 given that we were in lockdown during in 2020 and 2021,” explains Helen. “One high point, and welcome surprise, is that we have solid, ongoing support from our local customers, many of whom we engaged with via social media during lockdown. However, the icing on the cake is the continuing significant footfall from visitors. Taken together, our turnover is significantly increased which is great news, as we firmly believe in the unique power, value and attraction of bricks and mortar retail.”
She adds: “Like others, we’re still grappling with supply chain and price concerns, but we’re doing our level best to keep a cap on that where possible. Many people are prepared to spend that bit extra for quality, and we are firmly in that ‘quality’ segment of the retail market. We are still seeing significant numbers of staycation visitors when compared to pre-covid. Therefore, so far, we think that any downturn in spend due to the cost of living crisis is more than compensated for in terms of our significantly increased visitor footfall.”
To read the full version of this article in the May/June issue of Progressive Gifts and Home CLICK HERE
Top: Is the cost of living crisis starting to bite for gift shops?
