|
As we rapidly head towards the end of 2016, it has been pleasing to see that no administrations have been recorded on SnapShop since our last update.
November was the month for Black Friday – see our previous blogs – and the start of discounting as retailers geared up to capture the all-important Christmas spend. In fact, recent research from Deloitte has found that for the sixth consecutive year, consumers are enjoying bigger pre-Christmas discounts than they did in the previous year. Analysis of over 300,000 products currently for sale in the UK reveals that discounts are currently averaging 43.3% - some 1.5% deeper than at the same time last year.
Despite all the discounting, retail footfall in November edged down 1% on the same month last year following a 0.9% drop in October, and retail sales only edged up 0.6% year-on-year. and GfK’s Consumer Confidence Index dropped 5 points to -8. As has been seen throughout the year, the leisure industry has remained resilient and November was no different - like-for-like sales in managed pub and restaurants grew by 1.1% against 2015, with London providing the biggest increase.
London has been a talking point as it remains an attractive destination for new UK retail entrants. According to new research from CBRE, over 75 new retail entrants opened in London in 2016, with the prime streets in Mayfair and Chelsea proving to be a magnet for luxury brands.
Interestingly, a new report has predicted that travel hubs will be the most favoured location for new stores in the coming year. (0912) This doesn’t come as much of a surprise to FSP, when new figures have shown that like-for-like retail sales at Network Rail managed stations grew by 3.5% from July to September. This equates to total sales of over £166 million, up from £160 million in the same period last year.
What remains to be seen is how retail will fare for the remainder of the year and who will be the winners and losers over the festive season. SnapShop will bring you all the news on this in January.
In the meantime, we wish you all a very Merry Christmas and a Happy New Year
|