While gift retailers are bracing themselves for the triple whammy of business rates doubling, employer National Insurance rising and the minimum wage increasing next month, they are doing so on the back of what was a better than expected year, up 6% on 2023.
The findings of Progressive Gifts & Home’s unique, annual Retail Barometer, the only annual survey into the independent gift retail sector, revealed that Christmas 2024 was a cracker, with some two thirds of respondents (65%) reporting that last Christmas’ trade was better than the previous year. For a massive 88% of respondents, the average festive spend remained the same as the previous year or slightly up, with greeting cards, plush and fashion accessories among the star performers across the year.
Despite the ongoing cost of living crisis in 2024, well over half of respondents, (54%), confirmed that the average spend had increased slightly on the previous year, with 4% reporting that it had increased significantly and further 27% saying it was about the same.
An upsurge in new customers moved up one place this year, seen as having the most positive effect on driving sales. In second place was the ‘shop local’ campaigns and support, linked to people choosing to work from home, or simply wanting to support their local independents.
Meanwhile, with the ongoing cost-of-living crisis continuing to determine people’s spending habits, it came as no surprise that 70% of those surveyed said that this was the prime reason affecting sales. Suppliers’ websites selling direct to consumers, parking issues, empty shops in the vicinity, charity shops selling gifts and the expansion of wholesale online retail platforms such as Faire, were also reasons that had a detrimental effect last year. Other factors highlighted included shoplifting, bad weather and increased operational costs.
While few indies expect to see significant growth this year, the vast majority of respondents – 96% – are hoping to see marginal growth or their business remaining on a par to last year.
Almost half of those surveyed (46%) said that they were positive or very positive about the future of independents over the next one to three years, with 12% saying they were hoping to open another shop this year.
The PG&H Retail Barometer is the only annual survey that delves into the trials, tribulations and triumphs of independent gift retail.
The full set of findings will be published in the March/April issue of Progressive Gifts & Home magazine.
Top: PG&H’s 19th Retail Barometer revealed a better than expected year for gift indies in 2024.
