27th November 2006

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Internet retailers could be the big winners this Christmas if early shopping trends are anything to go by – says UU retail expert, Donald McFetridge.

Shopping patterns and consumer spending is already showing signs of being quite different from the Christmases of 2004 and 2005.  

“Many experts are predicting that online retailers will have a major selling season with a massive surge in Internet shopping compared with last year,” says Donald.

“Internet retailers are much better prepared for the splurge of last minute online shopping and they have generally sorted out the various distribution and delivery problems which they experienced in previous years.

“Drapery sales are showing a downturn so far this year, no doubt due to the mild weather. Hopefully, for retailers operating in this sector, this situation will change as the cooler days become more prevalent.  Value clothing sector retailers such as Primark will be among those with a positive story to tell post-Christmas 2006; this sector of the drapery market is variously estimated at 3.7% of the total market and well-placed sources in the industry are predicting strong sales.

“In past years there has been a great deal of money spent on widescreen/plasma television sets, iPODs, MP3 players, PCs and digital cameras.  While there is still a reasonably buoyant market out there for these (and other) electrical goods, the market will not be anywhere close to the value it was last year; those purchasing these products will be largely the ‘late adapters’ or those replacing out-of-date equipment in this product range. 

“Interestingly, the children’s toy market will still realise some excellent results with an estimated £2.1 billion being spent in this sector.  Meanwhile, adult consumers are increasingly challenged in respect of money for purchases and the time to spend it; we live in a cash-rich, time-poor world.

“Worth noting is the hard fact that not everyone has a bulging wallet or the time to rush around the shops at the last minute.  Many cannot afford to buy the latest, up-to-the-minute gadgets, toys or clothes.  There is still a massive amount of personal consumer debt around and this, coupled with the predicted interest rate hike, will cause many consumers to reconsider their spending habits during the lead-up to the Christmas season. 

“Many consumers have already commenced their Christmas shopping; Christmas crackers have been in many high street stores since September and right now the supermarket shelves are stacked high with all the paraphernalia of the season – Christmas cakes, puddings and mince pies, etc.  However, since Christmas Day falls on a Monday this year, there will inevitably be a last-minute rush to the shops during the previous weekend.”

  

For further information, please contact:

Trina Porter
Telephone: 028 71675511
Email: Trina Porter