Retail Christmas Forecast: What the Summer Numbers Really Tell Us

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How did the summer retail landscape actually perform according to the data?

Catherine Erdly 0:00
This episode is brought to you by Capify. There are two sides to a loan application, the credit score and the story behind it. At Capify, they look beyond just the numbers. They look at the business owner chasing invoices, paying wages, managing cash flow and planning the next job. And because every application is reviewed by a real person, they can take the time to understand your business. So if you're a So how was the summer for retail in general? And more importantly, what does that tell us about what's ahead for Christmas? Welcome to the Resilient Retail Game Plan. I'm Catherine Erdely, and this podcast is here to share retail industry trends, insights and best practices for you, the retailer who's serious about building something that lasts.
Catherine Erdly 0:54
As we head towards the most important trading season of the year, I wanted to take a moment to look back at what the numbers are actually telling us about the way that consumers are feeling about buying at the moment, what happens in retail over the summer and what this means for you and your business as we head towards Christmas. Depending on what you read, you might hear different things. You might hear that retail is struggling or you might hear that consumer spending is up. You might hear that no one's going to the high street or everyone's shopping online. You might hear that the customer is getting more confident, but you might also hear that everyone is still incredibly cautious. And the funny thing is, is that a lot of those things can actually be true at the same time.
Catherine Erdly 1:40
So what I wanted to do is run through what the actual numbers about footfall and about customer spend are telling us about what happened in the summer for retail. And then again, take a moment to look forward to what that means for Christmas. The key thing that I would really like to emphasize is that a lot of the media stories that we hear about retail, they love to latch on to the negative headlines and they love to really lean on those and make it sound like the retail apocalypse or retail meltdown or all kinds of very alarmist words or very alarmist headlines. But when you actually dig into the detail of what's happening, it very rarely adds up but i guess it just doesn't make as good of headlines to say broadly speaking everything is okay what we're not seeing over the summer numbers is that consumers stopped spending i think that they're telling us that as we've seen over the last few years spending is selective
Catherine Erdly 2:40
definitely more occasion-led so people are buying in response to specific needs and it's also increasingly channel fluid which essentially means that people are moving more easily between online and offline sales and that means that christmas is not necessarily something to be pessimistic about but retailers can't assume that christmas will magically deliver bonanza sales either However, I would say that this is broadly the same as the outlook for last year's Christmas and the Christmas before. I do these kinds of roundups each year and I think that the picture is not broadly, broadly different from where it's been over the last couple of years. Potentially, it's ever so slightly better. So what actually happened over the summer?
Catherine Erdly 3:27
The headline sales numbers were really quite decent. So the official Office of National Statistics numbers show that retail sales volumes were up 1.3% month on month. June was up 0.7% and then July was down by 0.5%. So it was a strong May and June followed by some cool off in July.

What do the ONS sales figures reveal about overall retail volume and month‑on‑month trends?

Catherine Erdly 3:48
But don't get too hung up on the basis of this one month. If you look at the same period last year, the three months to July were actually 3% up on the year. So this is not showing that nobody is spending. People are spending, but it was slightly uneven. And June appears to have pulled some spending forward because retailers started promotions earlier than usual. Lots of people mentioned this to me in the month of June, and you probably have seen it yourself that there were a lot of sales that felt like they were starting earlier.

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