A knockout Christmas for savvy retailers who are in touch with their consumers
This week, some of the UK’s biggest high street retailers have been popping the champagne corks after reporting flourishing Christmas sales.
December is the biggest shopping month of the year amounting to 12% of our yearly spending. Retailers are believed to have spent a whopping £5.6bn on Christmas advertising in 2016, and for most, it certainly paid off at the most competitive time of the year in this space.
The discounters continued to fare well with Aldi and Lidl reporting a higher growth of 11.8 per cent and 7.5 per cent respectively in comparison to the previous year, although the growth of these retailers appears to be levelling out. As retail expert Harry Wallop was keen to point out, 2016 was the year that big supermarkets found their mojo after a couple of years of struggling to compete against the discounters.
Overall, Christmas sales were up by 1.8 per cent, with Morrisons reporting an increase of 2.9% in like-for-like sales; its best sales rise for seven years! This was followed by Tesco with a slight like-for-like sales increase of 0.7%.
The results are proof that consumers are gravitating back to old favourites like Morrisons and Tesco who provide a more reliable, trusted and consistent offering – essential for Christmas when consumers don’t want to take any risks – Wallop pointed out that Aldi sold out of certain Christmas staples so that could have impacted their sales…
Most notably, Morrisons credited their success to the popularity of their premium range, ‘The Best’ which offers premium products at an affordable cost, and in terms of the media coverage that has featured this week about Christmas retail sales, Morrisons’ success stole a lot of the headlines (unlike Next, for all the wrong reasons). The retailer has also been ruthlessly focussed on developing products their customers will love and that ring true to the brand.
Our nation’s ongoing love for a festive tipple also pushed sales up across the retailer board. Lidl noted strong Prosecco sales whilst Morrisons praised its beers, wines and spirits offering for encouraging its sales uplift.
Having successfully pitched for and won the Morrisons product PR account last year, we’re continually beaming with pride to have played, (and continue to play) a pivotal role in raising awareness of the retailer’s fantastic product range – many of which are created in-store by the talented team of Morrisons’ food makers. It all contributes to increasing positive reputation for Morrisons amongst its consumers. Here’s to more ongoing Morrisons successes and continued growth – they’ve certainly earned it.