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2016 has certainly been a tumultuous year both in the UK and abroad, with major decisions having taken place surrounding the UK’s exit from the EU, and indeed the election of Donald Trump as US president. Both of which are likely to have significant impacts on the UK and the spending power of its consumers, but that remains a tale for this year as events surrounding both unfold over the forthcoming months.
2016 has had its highs and lows in retail; from the demise of BHS in May – the row over its administration still rumbles on as costs continue to escalate; to the launch of several new retailers and concepts in the UK – Duka, Griddle & Shake, Coffika, Typo, Ribs & Burgers, Jurlique and Maison Kayser to name a few; proving that the UK is still a great place to invest. Figures from Deloitte show that 92 retailers went into administration last year, down 4% on the 96 that failed in 2015.
Online sales soared in 2016 rising by 16%, fuelled by soaring mobile shopping rates and strategic Black Friday purchasing. Data from IMRG revealed that £133bn was spent online shopping in the UK during 2016, a 16% rise on 2015. This was boosted by a 47% rise in the number of transactions made by on mobile phones. However, sales via tablets fell by 3%. IMRG is forecasting a 14% growth in sales for 2017.
Consumers continued to spend out on leisure activities, resulting in the UK and Ireland cinema box office achieving its best-ever results in 2016, amassing £1.32bn to beat the previous record set in 2015. According to figures released by the box-office tracker comScore, the total for 2016 was 1.45% higher than the previous year, which finished at £1.31bn.
Entertainment retail sales also reached an all-time record high in 2016 as digital services like Spotify, Apple Music and Sky enhanced the industry. Figures from the Entertainment Retailers Association (ERA) show that entertainment retail sales reached £6.3 billion in 2016, up 3% on 2015 which was a 53-week year, and taking in over £1 billion more than in 2012. Digital sales of music, video and games encourage this growth, with the video market becoming a majority digital market for the first time. Non-physical sales also account for 57% of music revenues despite vinyl maintaining a healthy resurgence up 56.4% from 2015.
2017 certainly has a lot to live up to if it wants to surpass the records set in 2016. Whatever happens, you can be sure that SnapShop will keep you up-to-date.
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