Retail at Christmas festive FAQs 2020/21 - British Retail Consortium
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Retail at Christmas festive FAQs 2020/21
Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
contents
FUN FESTIVE FACTS 4 CRIME
How can consumers ensure they stay safe when shopping online? 14
COVID & CHRISTMAS What are retailers doing to protect their colleagues from crime at Christmas? 14
How will this year differ from previous Christmases? 5
Will Covid have an impact on deliveries? 5 SUSTAINABILITY
How are retailers preparing their warehouses? 6 Is Christmas wrapping recyclable? 15
How will retailers cope with the pre-Christmas rush? 6 Are Christmas cards recyclable? 15
What is the latest date I can order items to ensure they arrive in time for Christmas? 6
How much money was lost in sales during the second lockdown? 6
CASE STUDIES
Crew Clothing 16
BREXIT & CHRISTMAS Boots 18
Is Brexit affecting Christmas this year? 7 Asos 20
Do you anticipate a consumer rush to stockpile before the new year? 7 Amazon 22
Will retailers be stockpiling goods and products over Christmas? 7
KEY DATES FOR YOUR DIARY 24
SALES
How important is Christmas to the retail sector? 8 FURTHER INFORMATION 26
How much will be spent this year? 9
Where will this spending go? 10
What is the impact of black Friday? 11
How far will the £’s stretch? 12
How busy will the shops be? 12
What will be popular this Christmas? 13
How big will sales over boxing day be? 13
When will the January sales start? 13
How is retail employment affected by the Christmas rush? 13
2 3
Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
FUN FESTIVE Facts
£48M
£48 billion 8 million
The amount of money
spent on Christmas
The number of
Christmas trees sold
COVID &
Christmas
last year in the UK every year in the UK
How will this year differ
from previous Christmases?
It is difficult to predict the outcome this year, but we expect a larger
proportion of sales to be made online, given non-food online sales have
increased by an average of 40% year-on-year over the last three months.
175 million 277 million miles Thankfully, since the first lockdown there has been a huge investment
The number of How much wrapping by retailers in online platforms and delivery logistics.
mince pies eaten by paper consumers in
Brits at Christmas the UK use each year
Will Covid have an impact on deliveries?
The ongoing pandemic is putting enormous pressure on online delivery
services across the country, especially at a time when there is already
59% a lot of pressure from the rise in Christmas purchases. Retailers are
investing millions into strengthening their home delivery and click-and-
proportion of the collect operations, but this has also been matched by a huge increase
nation who say pigs in demand.
in blankets are their
As always, retailers will be working hard to address and rectify any
favourite Christmas
delivery issues as soon as they are made aware of them. Nonetheless,
dinner trimming
we recommend all customers to leave a little extra time for deliveries
to arrive so that everyone gets the items they need when they need
them. By preventing a last-minute rush before Christmas, we can all
help protect our fellow customers, shop staff, warehouse workers and
delivery drivers who are working tirelessly behind the scenes to bring
us some festive cheer.
4 5
Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
BREXIT &
CHRISTMAS
How are retailers preparing Is Brexit affecting Christmas this year?
their warehouses? There is still a great deal of uncertainty about issues like trade tariffs,
customs arrangements, employment numbers and relationships with
Retailers will be increasing their capacity with extra employees, suppliers. Brexit may affect consumer confidence but there should
all the while implementing strict Covid safety measures. be little impact on supply changes and the general consumer
experience over Christmas.
How will retailers cope with the
Do you anticipate a consumer rush
pre-Christmas rush?
to stockpile before the new year?
Retailers continue to uphold all necessary safety guidance to make
shops Covid-secure throughout the Christmas period and beyond. It is completely unnecessary for consumers to stockpile. Just as
Firms have already invested hundreds of millions 1n safety measures they did during the pandemic, retailers have done an excellent job
including Perspex screens, additional cleaning, and implementing in ensuring customers have access to food, medicines and necessities.
social distancing. Government data has shown that retail is a safe There is currently more than enough food and other essentials for
environment for both staff and customers. everyone to get what they need, and we urge consumers to be
considerate of others and shop as they normally would.
We remind the public that it is vital they play their part: maintaining
social distancing inside stores and outside; washing hands regularly;
being considerate of fellow shoppers and staff members; and where
possible, trying to visit shops at quieter times. Will retailers be stockpiling goods
and products over Christmas?
What is the latest date I can order items Retailers are doing their best to stock up in preparation for Brexit.
However, there is limited capacity to do so, particularly for fresh produce.
to ensure they arrive in time for Christmas?
We encourage all consumers to start their Christmas shopping as early
as possible to ensure you receive your desired goods in time. If you are
shopping last-minute, we would recommend consulting the retailer for
specifics to guarantee delivery before Christmas, or visit the BRC page
here for further information.
How much money was lost in sales
during the second lockdown?
It is estimated that non-food store-based retailers lost over £2bn
a week in lost sales as a result of the lockdown. Undoubtedly, some
but not all of these sales will have moved online, either to online
delivery or click-and-collect.
6 7
Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
SALES
How important is RELATIVE MONTHLY SPENDING
Christmas to the How much will be spent this year?
2019 Month as % of Total Sales The Office for National Statistics saw approximately According to the Bank of England, a typical UK
retail sector? £82 billion spent in December and November last household spends approximately £2500 per
year. According to our BRC-KPMG Retail Sales month, but at Christmas, this increases by an extra
December is the biggest month of
Jan 7.4% Monitor, sales growth a year to date has averaged £800. Over the festive period, shoppers spend an
the year for most UK retailers, and
a disappointing -0.6%. However, we expect that estimated 16% more on food, 39% more on alcohol
according to the ONS Retail Sales
this December will see significant growth, particularly and 85% more on books.
Index, November and December Feb 6.9%
due to the release of pent-up demand from the
account for more than 1/5th of On the other hand, consumer confidence has taken
November lockdown in England. As all stores are
the year’s sales. This is why the Mar 8.0% a significant hit over the course of the year thanks
open for the vast majority of December, consumers
November lockdown could not to the pandemic, and this can be clearly seen below
will purchase goods in the run-up to Christmas
have come at a worse time for the in the GfK Consumer Confidence Index. This, together
Apr 8.0% that they couldn’t easily buy online in November.
industry; it is such a crucial trading with the ongoing socialising restrictions could dampen
Therefore, we expect sales to outdo the £82 billion
period and we estimate £2bn will spending levels over Christmas; and as people cannot
May 8.3% seen over the same period last year.
have been lost per week in sales. gather in such large groups, it will limit the number
of presents being purchased.
Jun 8.1%
Jul 8.6% CONSUMER CONFIDENCE
Aug 8.3% 10
0
Sep 7.9%
-10
Oct 8.6% -20
-30
Nov 9.1%
-40
Dec 10.9% -50
-60
Source: BRC calculations using ONS Retail Sales data
Note: ONS data is calculated using a 4-4-5 weeks
per month structure, data above is adjusted to
reflect the number of days in each month
Overall Major purchases
Source: GfK Consumer Confidence Index
The end of the transition period is also fast approaching, which may
also play into consumer spending patterns immediately after Christmas.
The potential for increased costs and supply chain disruptions in January
could drive consumers to stockpile goods ahead of 1st January.
8 9
Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
Where will this spending go? What is the impact of black Friday?
Food sales made up around 44% of spend in December 2019, with Black Friday is a day of significant discounts both online and in-store.
the remainder spent on Non-Food items. We expect a similar pattern In recent years it has grown to be one of the major discounting periods
this year. of the retail calendar. With increased sales over Black Friday week, there
tends to be less full prices sales in the weeks between Black Friday and
According to the Bank of England, the area that sees the highest the immediate run up to Christmas.
increase in spending over Christmas is Music & Film, with 116% more
being spent over the period in 2018 in comparison to a typical month. With Black Friday arriving during the second lockdown period of the
Books are also a popular gift, with spending increasing by 85% in year on November 17th, Online growth reached 47.2% in November.
December. Seeing as the culinary side of Christmas is a highlight for
many, the relatively low increase in spend of 16% may seem surprising, As the below graph shows, the later timing of Black Friday last year
but as it is from the largest base figure, there is still a big difference pushed sales further towards the pre-Christmas week rush, which had
in absolute terms. the effect of cannibalising some of the latter’s sales. Black Friday sales
were stronger than the previous year, but sales in the pre-Christmas
week slowed significantly.
INCREASE IN SPENDING ON PRODUCTS AT CHRISTMAS
SPENDING PATTERNS OVER THE FESTIVE PERIOD
Black Friday Christmas
2019/20
2018/19
2017/18
Dec Jan Feb
Source: Bank of England
Source: BRC-KPMG Retail Sales Monitor
More Christmas gifts than ever will be bought In the run up to Christmas last year, the proportion
online this year. 2020 has seen a remarkable of Non-Food spend online expanded from 29%
shift to online shopping due to the closure of in October to more than 33% in November and
non-essential retail on two occasions. Many only more than 31% in December. October 2019 saw
engaged with online shopping for the first time online capture nearly 32% of Non-Food sales,
during the pandemic, and these habits are likely suggesting we could see Online penetration pass
to stick. Thankfully, due to lockdown, there has 35% this November.
been a huge investment by retailers in online
platforms and delivery logistics.
10 11Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
How far will the £’s stretch? SHOP FOOTFALL IN 2020
As our BRC-Nielsen Shop Price Index shows, Food applied downward pressure on non-food prices, 10%
prices have seen consistent inflation over the past as unemployment spiked when the coronavirus crisis 0%
year, and in the three months leading to November swept the country and the government’s furlough -10%
they increased by an average of 1.2%. While this scheme initially capped at 80% of full-time wages. -20%
-30%
rate of inflation is not abnormal when compared to Although this overall trend is almost certain to -40%
historical figures; increasing food prices leaves less continue until the end of the year, the release of -50%
room for discretionary spending. Meanwhile, shop pent-up demand into the market – as consumers -60%
prices for non-food goods have fallen dramatically scramble to make up for lost time in their Christmas -70%
in 2020. This was particularly evident when the preparations – could put upward pressure on prices -80%
UK entered both lockdowns, as sales were hit the if retailers struggle to maintain supplies in the short -90%
hardest. The UK’s precarious labour market has also trading period, so there may be less discounting.
SHOP PRICE INFLATION Source: BRC-ShopperTrak Footfall Monitor
3.0%
2.0% What will be popular When will the
1.0% this Christmas? January sales start?
0.0%
Last December, the Non-Food categories: Clothing, Traditionally, the January sales begin on 26th
-1.0% Health & Beauty and Home Accessories enjoyed December. However, many retailers roll out some
-2.0% the highest year on year growth, according to our discounted offers sooner, with sales starting on
BRC-KPMG Retail Sales Monitor. However, as a Christmas Day.
-3.0% result of Covid, clothing & beauty sales have suffered
-4.0% throughout the year, and we expect electricals, home
office products and homeware to be particularly How is retail employment
-5.0%
popular this Christmas.
affected by the Christmas rush?
How big will sales As Christmas is the busiest time of the year for
All Items Food Non-food retailers, they will increase front-line employee
Source: BRC-Nielsen Shop Price Index over boxing day be? numbers to manage this extra demand and provide
the services necessary to make this time of year as
The BRC does not hold data on Boxing Day sales. enjoyable as possible for the UK. However, due to
However, last year, lots of shoppers opted to stay the impact of the coronavirus crisis on store closures,
How busy will the shops be? online rather than go into the shops on Boxing Day, there has been a huge amount of job losses this year.
While the overall number of shoppers will be subdued What’s more, the increased pressure on retailers’ and given the pandemic, this trend will no doubt As a result, total numbers working over Christmas
this Christmas compared to previous years, restrictions online logistical capabilities may lead to longer continue. Boxing Day tends to be a busy time for are likely to be lower than usual.
on the total volume of people allowed in a shop at any delivery times for orders. Therefore, the last day to specific non-food products like furniture, where the
given time could lead to substantial queues. This may buy online for items to arrive in time for Christmas post-Christmas sales tend to be more significant
come to the detriment of the least organised among may be earlier, so a trip to the shops may be the only than those that occur before Christmas.
us, as last-minute shopping may not be as feasible as remaining option for last-minute shoppers, and so
Our BRC-KPMG Retail Sales Monitor will be released
we are used to! However, no matter when a consumer the high street could be busier.
on 12th January 2021 and will look at how trading
chooses to shop, they can be confident that shops are
over the festive period in 2020 has fared. It will
safe and Covid-secure thanks to retailers investing
include year-on-year spending patterns by category.
hundreds of millions in safety measures
12 13Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
crime SUSTAINABILITY
How can consumers ensure What are retailers doing to Is Christmas wrapping Are Christmas
they stay safe when shopping protect their colleagues from recyclable? cards recyclable?
online? crime at Christmas? Despite how it may appear, not all wrapping is made Whilst Christmas cards made from card are recyclable,
of paper and some cannot be easily recycled. A quick cards with glitter and other adornments may not be.
We advise consumers to shop with reputable retail The retail industry invests £1.2 billion a year in simple test (though not fool-proof) is to perform the If this is the case, you can just recycle the back and
firms or marketplaces, and to be cautious with combatting crime, with a major focus on violence. scrunch test. Screw up the discarded wrapping paper use the front to make gift tags for next year.
deals that seem too good to be true especially from Regrettably, there are over 400 incidents of violence and check whether it holds the shape. If the paper
unknown overseas retailers and websites. or abuse against retail workers every day, and the remains scrunched, it can be recycled; if it unfurls
number has risen as retail employees implement or springs back, it should be disposed with general
coronavirus safety measures. The BRC has long called household waste.
for the Government to take decisive action; we want
a specific criminal offence put into legislation to
ensure those who assault retail workers face the full
force of the law and make staff feel better protected.
14 15Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
Every year before the Christmas party, Crew Clothing
asks its head office and store employees to submit
a wish. Dozens are granted, from a new hoover to
a wedding dress and flights to see faraway family
members, the prizes are limitless and the smiles
wide. In light of the difficulties so many have faced
this year, Crew wanted to extend this small act
of kindness to its customers. As part of the brand’s
Christmas campaign, which centres around sending
love from afar, Crew launched its ‘Win a Wish’
competition online and in 86 store windows
around the country.
‘If there’s one thing 2020 has taught us, it’s that
kindness is the greatest gift of all’, says Crew
Clothing’s brand director, Georgina Clark. ‘We
Case Study love being able to give back to our team every
Crew Clothing
Christmas and this year, more than ever, we wanted
to show thanks to our customers as well. It felt
really important to us to round 2020 off by putting
a little something extra in the post for those that
went above and beyond.’ The competition invites
customers to nominate a friend, family member,
neighbour or even someone they don’t know that
well that’s done something unexpected to help
them. All entries are in with a chance of winning one
of 20 gift cards loaded with £200 to spend. Crew
plans to share the best stories at the end, helping
to spread good cheer during the festive period.
This year, the brand has put kindness at the heart
of its marketing strategy, donating almost £100,000
to the likes of the Marine Conservation Society,
NHS Charities Together, The Trussell Trust and Mind.
Crew has also gifted 1000s of its hero product – the
classic piqué polo shirt – to the real heroes of this
pandemic, the ones on the front line.
16 17Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
Boots Christmas campaign this year is centred on
acts of kindness, care and great value for all. Its
‘What the World Needs Now’ campaign recognises
that it has been a year like no other and acts of care
and kindness are what is needed most.
To help, Boots will provide hygiene essentials
to some of the millions of people in the UK living
in hygiene poverty, with a donation of £1million
worth of products to The Hygiene Bank. Boots
is also inviting customers to donate hygiene items
to support those most in need this Christmas.
Much needed essential items including soap,
shampoo, toothbrushes, deodorant, shaving
equipment, nappies and period products can
Case Study be dropped off in the bright yellow Hygiene Bank
boxes in 245 Boots stores across the country.
boots People can donate hygiene essentials in store
or donate £5 directly to The Hygiene Bank
by texting BASICS to 70085.
Tracey Clements, Chief Operating Officer of Boots
“We know it’s going to be a different Christmas for
people on many levels so we wanted to invest in a
Christmas campaign that harnessed the true spirit
of this year and people’s desire for kindness and
care. As a business we want to offer our support
to an important cause that’s been accelerated by
the coronavirus pandemic.
The partnership with The Hygiene Bank is part of
Boots’ ongoing commitment to improving people’s
access to health and supporting local communities.
Earlier this year, Boots’ donated more than 140,000
PPE products, including face masks and hand sanitisers,
which formed part of a further £1.2million worth of
products given to The Hygiene Bank.
18 19Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
As we draw closer to Christmas Jumper Day 2020,
Save The Children has launched its ASOS Marketplace
boutique, offering customers the chance to purchase
a second-hand jumper in support of the charity. 100%
of the profits from its collection of vintage Christmas
jumpers will go straight to Save The Children, with
no commission paid to ASOS Marketplace throughout
the collaboration. Customers can visit the boutique at:
marketplace.asos.com/boutique/save-the-children
ASOS will also be taking part in Save The Children’s
Christmas Jumper Day virtually this year, asking all
staff to wear their festive knit whether in the office
or working from home in order to raise some money
and help to change children’s futures.
Case Study The retailer has also launched two of its own ASOS
Foundation Christmas jumpers, which will see 100%
Asos of profits going towards the Foundation’s vital work
supporting young people in the UK, India, and Kenya.
Find out more here: asosfoundation.org
20 21Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
Children across the UK will enjoy a special Christmas surprise
when their usual teachers are replaced by dance duo Joe Sugg and
Dianne Buswell from BBC’s Strictly Come Dancing; rapper, Professor
Green; Countdown’s maths whizz Rachel Riley; TV doc, Dr. Ranj; and
professional freestyle footballer, Lia Lewis, for Amazon.co.uk’s “VIB –
Very Important Breakfast - Clubs”. Co-hosted with Magic Breakfast -
a charity which provides healthy breakfasts and wrap-around support
to tens of thousands of children in disadvantaged areas of the UK -
these exclusive lessons were created to mark the two millionth meal
delivered by Amazon this year alone and form part of a Christmas
programme of donations. Following e-visits to schools in Doncaster,
Poole, Brent, Scunthorpe and Edinburgh, the Clubs will be made
available on the Amazon.co.uk YouTube channel for all children for
free this festive season.
Case Study “This Christmas, we have created Very Important Breakfast Clubs to
bring joy to children, schools and families across the UK, underpinning
Amazon
our ongoing commitment to deliver fuel for learning across the rest of
the school year, including the holidays,” said John Boumphrey, Country
Manager Amazon.co.uk.
“We’ve worked with Amazon for over four years and, in 2020 alone,
together we’ve delivered two million breakfasts to vulnerable children
which is just astonishing,” said Alex Cunningham, CEO of Magic
Breakfast. “After a challenging year, ending with the cancellation of
many school celebrations, we hope that our VIB Clubs with Amazon
will give children a reason to smile this Christmas, as well as raising
funds and awareness for the most vulnerable in our communities.
None of this would have been possible without our partnership
with Amazon, so thank you to Amazon for their unwavering support
and helping us end a difficult year with some Christmas magic.”
Customers can support Magic Breakfast by donating here:
magicbreakfast.com/donate/magic-breakfast or by choosing
Magic Breakfast as their charity on Amazon Smile.
22 23Retail at Christmas | festive faqs 2020/21 Retail at Christmas | festive faqs 2020/21
Key dates for
your diary
December 2020 January 2021
02 BRC-NIELSEN
SHOP PRICE INDEX NOVEMBER
01 NEW YEAR’S DAY
04 BRC-SHOPPERTRAK
FOOTFALL MONITOR NOVEMBER
04 BRC OFFICE RE-OPENS
08 KPMG
RETAIL SALES MONITOR NOVEMBER
06 BRC-NIELSEN
SHOP PRICE INDEX DECEMBER
15 ONS
LABOUR MARKET STATISTICS DECEMBER
08 BRC-SHOPPERTRAK
FOOTFALL MONITOR DECEMBER
16 12
SRC-KPMG ONS
BRC-KPMG
SCOTTISH RETAIL SALES CONSUMER PRICE
RETAIL SALES MONITOR DECEMBER
MONITOR NOVEMBER INFLATION NOVEMBER
18 20
SRC-KPMG ONS
ONS
SCOTTISH RETAIL SALES CONSUMER PRICE
RETAIL SALES INDEX NOVEMBER
MONITOR DECEMBER INFLATION DECEMBER
24 22
BRC ONS
CHRISTMAS EVE
QUARTERLY TRENDS RETAIL SALES INDEX
BRC OFFICE CLOSE UNTIL 4 JANUARY 2021
ANALYSIS (Q4 2020) DECEMBER
25 CHRISTMAS DAY
26 ONS
LABOUR MARKET STATISTICS JANUARY
26 BOXING DAY & JANUARY SALES BEGIN
29 BRC-LDC
VACANCY MONITOR (Q4 2020)
24 25Retail at Christmas | festive faqs 2020/21
Further information
WHERE YOU CAN FIND WHERE TO FIND INFORMATION ON
INFORMATION FROM US LENDING LEVELS OVER CHRISTMAS
Over the Christmas period you can get our most The Bank of England publishes monthly data on
up-to-date statistics and commentary on our Twitter lending levels to individuals that is broken down
accounts. @BRCDataSpace offers dedicated retail by type of credit, which for December is due to be
statistics and links to our reports, with @the_brc released on 31st January. Alternatively contact the
offering general commentary. Finance and Leasing Association who are a trade
body for the consumer finance sector, for information
on store cards, or the UK Gift cards and Vouchers
BRC MEDIA ENQUIRIES Association for statistics on gift cards and vouchers.
T: 020 7854 8924
E: media@brc.org.uk LOOKING FOR COMMENTARY
ON INDIVIDUAL RETAILERS
WHERE TO FIND SALES FIGURES As a member organisation we cannot comment on
individual companies, therefore retail analysts should
FOR CHRISTMAS 2020 be contacted directly.
The BRC office is closed from 25th December until
4th January and our detailed report on December’s
retail sales will be released on 12th January 2021, REGIONAL BREAKDOWNS
which will include year on year spending patterns by
category. Prior to this, the Centre for Retail Research FOR SALES INFORMATION
may be able to help.
Our Scottish Retail Sales Monitor covering December
will be released on 15th January, which breaks down
retail sales performance by category. For more locally
focused sales data, we recommend contacting local
retailers directly.
26The BRC’s purpose is to make a positive
difference to the retail industry and the
customers it serves, today and in the future.
Retail is an exciting, dynamic and diverse
industry which is going through a period of
profound change. Technology is transforming
how people shop; costs are increasing; and
growth in consumer spending is slow.
The BRC is committed to ensuring the industry
thrives through this period of transformation.
We tell the story of retail, work with our
members to drive positive change and use
our expertise and influence to create an
economic and policy environment that enables
retail businesses to thrive and consumers to
benefit. Our membership comprises over 5,000
businesses delivering £180bn of retail sales and
employing over one and half million employees.
BRITISH RETAIL CONSORTIUM
Suite 60, 4 Spring Bridge Road, Ealing. W5 2AA
+44 (0)20 7854 8900 | info@brc.org.uk | brc.org.uk
British Retail Consortium - a company limited by guarantee
Registered in England and Wales No. 405720
registered office: 100 Avebury Boulevard, Central Milton Keynes, MK9 1FHYou can also read
