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British Retailers See Modest Christmas Spending Boost, Led by Online Sales

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British consumers are spending more in the lead-up to Christmas, with retail spending rising 2.3% year-on-year for the seven weeks leading up to December 20, according to figures from Visa. Online sales led the charge, increasing by 6.1%, while electronics and homeware purchases saw the most significant boost, with department stores reporting a 7% uptick in trade.

Despite the overall increase, some retail categories, such as clothing and accessories, struggled. Sales in these sectors fell by 2%, indicating that consumers are being more selective with their purchases. Analysts suggest that careful spending, along with a mild autumn that led to widespread discounting, contributed to the subdued performance in fashion.

Alicia Ngomo Fernandez, head of UK consulting at Visa, noted that the data points to “moderate growth” in sales, with “stronger online shopping and solid growth in spending at department stores.” This cautious optimism is fueled by improvements in disposable income, which rose by 10.5% in November, marking six consecutive months of double-digit gains, according to Asda’s Income Tracker, compiled by Cebr.

“Super Saturday,” the Saturday before Christmas, saw footfall increase by 0.8% compared to the same day last year, with estimates suggesting consumers spent roughly £3 billion. However, visitor levels on high streets and in shopping centers during the first three weeks of December remained 3.6% below 2023, likely due to the continued strain of high costs for essentials like energy and groceries.

Experts believe part of this shortfall can be attributed to the timing of Black Friday, which occurred later than usual and extended into December, pulling forward some Christmas purchases. With Christmas falling on a Monday, many families only began their holidays on Saturday, which could further boost footfall as the festive period continues.

Retail consultant Andy Sumpter of Sensormatic expects a final surge in spending on Monday, which is expected to be the third-busiest trading day of the year. “While ‘Super Saturday’ delivered a frenzy of festive footfall, the big question is whether these final flurries of Christmas trade will compensate for the earlier dip,” he said.

In response to the fluctuating sales trends, some retailers have already begun offering discounts ahead of Boxing Day. New Look, The Range, and Debenhams have launched early sales, while Next has provided VIP customers with early access to its post-Christmas offers.

As consumer sentiment improves, albeit tempered by ongoing cost-of-living pressures, the industry is closely monitoring the final figures to determine whether this year’s spending boost will meet expectations.

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Train Passengers Face Five Months of Disruption as RMT Announces Sunday Strikes on West Coast Main Line

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Train passengers on the West Coast Main Line are facing up to five months of disruption, as the Rail, Maritime and Transport (RMT) union has confirmed a series of Sunday strikes set to begin on 12 January and run until 25 May. The strikes follow the rejection of Avanti West Coast’s latest pay offer, with over 80% of train managers voting against the proposal in a recent referendum.

Avanti West Coast, which operates high-speed services between London, the North West, and Scotland, has warned that the industrial action will result in “significant disruption” for customers. The company expressed disappointment over the vote outcome, claiming it had made a “very reasonable revised offer” to resolve the ongoing dispute. The dispute primarily concerns rest day working, particularly on Sundays, and a proposed “new technology payment” related to scanning electronic tickets.

The RMT, led by Mick Lynch, had suspended planned strikes just before Christmas after Avanti put forward a revised proposal. However, union leaders have now opted to resume and extend the industrial action, citing the company’s failure to deliver a fair deal. The core issue remains the company’s request for guards to work on rostered rest days, including Sundays, to cover staffing shortages and prevent timetable disruptions.

Avanti, which has been under fire for poor punctuality, was the worst-performing train operator between July and September, with only 41% of services arriving on time, compared to a national average of 67%. Despite this, the franchise narrowly avoided nationalisation after reporting some improvements. However, it continues to face scrutiny from the government, which ultimately controls its funding.

Industry observers suggest that the RMT may be leveraging its position to secure a more favorable deal from the Treasury, given Avanti’s heavy reliance on public funds. The union’s decision to escalate the dispute with five months of planned strikes highlights the ongoing instability in the UK’s rail sector, raising concerns for both businesses and commuters.

The strike action is expected to severely impact travellers on key routes, with long-distance services between major cities likely to be the hardest hit. As the dispute continues, passengers are urged to plan their journeys in advance and expect possible delays and cancellations.

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Women Who Work from Home May Miss Promotion Opportunities, Warns Nationwide CEO

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Debbie Crosbie, the chief executive of Nationwide Building Society, has raised concerns that women who regularly work from home may miss out on promotion opportunities due to reduced visibility in the office. Speaking on BBC Radio 4’s Today programme, Crosbie highlighted how more women than men have opted for flexible working arrangements in the post-pandemic world, often driven by childcare responsibilities. However, she cautioned that this trend could inadvertently hinder women’s professional growth by limiting their in-person presence.

Crosbie explained that “development-watching,” the opportunity to observe and learn from senior leaders in person, played a key role in her own career advancement. “Men are more likely to come into the office than women, and we need to be really careful that we don’t prevent women from accessing that vital learning,” she said.

Nationwide, where Crosbie leads, introduced a “work from anywhere” policy during the pandemic for its non-branch staff but has since revised it to require employees to spend at least two days a week in the office. The company’s updated policy reflects growing concerns that remote work could contribute to unequal career progression opportunities for those who are less visible to their colleagues and superiors.

Crosbie also reflected on her early career at Clydesdale Bank under the leadership of Lynne Peacock, recalling how observing an inspiring female chief executive navigate challenges had been instrumental in her own development. She also credited her decision to have a child at 32 with providing her with flexibility at key moments in her career. “Many women are now having children later—in their late 30s—precisely when they’re often in line for more senior posts,” she noted.

Recent data from the Office for National Statistics (ONS) reveals that 28% of the UK workforce now works in a hybrid model, splitting their time between home and the office. Among working parents, the figure rises to 35%, with fathers more likely than mothers to adopt hybrid working patterns. Meanwhile, 44% of UK workers continue to commute to the same workplace five days a week.

Crosbie’s comments come at a time when businesses are grappling with the long-term implications of flexible working arrangements. As the conversation around work-life balance continues to evolve, experts are increasingly focusing on the need for companies to find ways to ensure all employees, particularly women, have equal opportunities for career progression, regardless of their work location.

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UK High Street Faces Record Job Losses Amid Economic Struggles

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The UK high street has experienced its biggest annual job losses since the pandemic, shedding nearly 170,000 retail positions in 2024, as shops continue to battle with rising taxes, escalating costs, and weakening consumer demand.

According to data from Altus Group and the Centre for Retail Research (CRR), the total number of retail job losses this year has reached 169,395, marking a 42% increase from 2023. The ongoing strain has been highlighted by the high-profile closures of major retailers including The Body Shop, Ted Baker, Homebase, Carpetright, and Lloyds Pharmacy, all of which have struggled under the mounting economic pressures.

Joshua Bamfield, director of CRR, attributed the job losses to a combination of higher operational costs, inflationary pressures, and government caution regarding the economy, which has eroded consumer confidence and led to tighter household budgets. “Consumers are becoming more cautious, and retailers are feeling the squeeze,” Bamfield explained.

Retailers are now bracing for an even tougher 2025, with forecasts predicting that an additional 200,000 jobs could be lost as a result of new policy measures. Two key upcoming changes are expected to significantly impact the industry: a reduction in business rate relief and a sharp increase in employers’ National Insurance Contributions (NICs).

Altus Group estimates that business rates will rise by £688 million annually when the current 75% discount drops to 40%. Meanwhile, Chancellor Rachel Reeves’s plan to raise NICs from 13.8% to 15% and lower the threshold to £5,000 is expected to add further financial strain on retailers, particularly affecting part-time workers, who make up half of the retail workforce.

Recent data from the Office for National Statistics reveals that retail employment has fallen to 3.6 million, down from over 4 million in 2019. November’s retail sales volumes were also 1.6% below pre-pandemic levels, and Boxing Day footfall was nearly 5% lower than in 2023, according to MRI Software.

Despite these challenges, the Treasury has defended its economic measures, arguing that 40% business rates relief will remain in place for 250,000 properties, and a permanent lower rate will be introduced in 2026. The government also emphasized that over half of employers will either see no change or a reduction in their NICs bill.

As the retail sector faces continued adversity, the coming months will be crucial in determining whether these measures can help stabilize the industry or whether more significant disruptions lie ahead.

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