Retailers are hoping for a Christmas miracle
The crucial Christmas trading season was once relished by high street bosses hoping to fatten their profits before the New Year.
But so troubled is the sector that the once ‘Golden Quarter’ of retail has lost much of its shine, being viewed today by many executives as a way of raking in just enough cash to stave off collapse.
Read more: The Christmas adverts of 2019
Looking back at the year-to-date, it has largely been one of worsening conditions on the high street. Costs continue to mount, competitors continues to rise, and shoppers continue to hold back spending.
The likes of Sir Philip Green’s Arcadia, department store chain Debenhams and preppy fashion group Jack Wills have all turned to radical restructuring or fallen into administration.
Now it looks as if card company Clintons is heading down a similar path, with reports on the weekend that 66 stores face closure.
Even Mike Ashley, the man whose retail buying spree had at first seemed like a much-needed antidote to the high street crisis, said this summer that he regretted his rescue purchase of House of Fraser.
Whether it is Next in fashion, Tesco in grocery or Greggs in food, there have all been welcome exceptions to the rule.
Strong management teams with a fixation on cost-control and changing consumer trends can deliver solid results in uncertain times.
But for many bricks-and-mortar stalwarts, the outlook is gloomy.
Springboard insights director Diane Wehrle is forecasting that this Christmas will be slightly worse than last year’s for the retail sector: “Consumer confidence is still lower, spending is constrained in both bricks-and-mortar and online – there is no reason to suggest Christmas will be any more positive this year.”
After the 12 December election, retailers have a two-week trading opportunity to claw back any sales they might have lost in previous weeks due to uncertainty.
But if the weather is bad during that crucial fortnight, and people stay indoors rather than visit retail destinations, it could be a nail in the coffin for the most troubled chains.
Read more: Ikea shrugs off retail gloom to post sales rise
Springboard research published today with the British Retail Consortium underlines the challenge weather presents – a rainy Autumn this year helped drive a 3.2 per cent drop in annual footfall.
There is also the problem of customer experience; with some of Britain’s biggest retailers slashing costs this year, they risk longer queues at tills as a result of reduced staff overheads.
These headwinds leave the high street bracing itself for what could be its toughest ever golden quarter; they will be hoping their Christmas wishes of good weather and a welcome dose of political clarity can come to the rescue.