Are you going to spend less this Christmas?

A recent poll on Fieldworks Connections indicated that the answer to this question is ‘yes’, with two-thirds of our voters stating as such. Whether this means cutting down on presents or simply reducing the cost spent on the surrounding festivities – such as food and booze – remains unclear, but with choppy financial times continuing, it perhaps comes as no surprise.

With Christmas trees and seasonal merchandise popping up in the stores earlier and earlier with each passing year, and more and more people referring in true political correctness to Christmas as ‘the holidays,’ clearly retailers don’t want to miss a single chance to cash in.

Prioritising day-to-day expenditure will be a necessity for some - and a choice for others – but the extent of this is as yet unknown. The results of our poll certainly won’t be welcome news to retailers, many of which rely on this peak trading time for a large portion of their annual turnover (with some stores achieving 50% of their annual sales, and up to 80% of their annual profits, in December alone). But have the stores got it all wrong, or is it simply a different type of customer that has caused the change?
Luring customers into stores gives retailers the opportunity to advertise new items that the punter may not be aware of, and this can go a long way in securing impulse buys. However, with many now buying their Christmas shopping online – be it due to convenience or lethargy – this opportunity is considerably diminished.

It looks certain that high street stores are going to have to pull out all the stops to tempt customers in this year. Once inside, the store has to make the most of the opportunity by offering enticing displays and showcasing novel products. The shopper may enter the store with a ‘thought that counts’ mindset, but the retailer won’t necessarily share this goodwill sentiment, and it’s up to them to change it.