Shoppers out in force… but retailers are not rejoicing

Some malls reported increased footfall figures, with managers of Aberdeen’s Union Square saying shopper numbers were up 9 per cent on the same period last year, and Braehead in Glasgow reporting some stores bringing in extra tills to cope with the late rush.

But despite the reports of brisk sales, the British Retail Consortium said shopper numbers were “declining” as hard-up consumers waited for further price reductions or their next pay cheque.

Meanwhile, retail experts warned that shopper numbers did not necessarily mean increased sales. It had been expected that Saturday and Sunday would be the busiest shopping days of the year as people finished off, or even began, making their festive purchases.

Peter Beagley, general manager of Braehead Shopping Centre near Glasgow, said: “If the amount of shopping done at Braehead on Saturday is anything to go by, Santa will need a trailer at the back of his sleigh when he’s delivering all the Christmas presents this year.

“The cold weather hasn’t deterred shoppers coming out and they were waiting in the warmth of the centre for the shops at Braehead to open. From then on shoppers never stopped coming through our doors.”

Mr Beagley added: “One thing that is noticeable this year is that more people than ever are giving gift cards as Christmas presents.

“The reason for this could be that in the present economic climate, people want to make sure that when they do spend money on gifts that their money is well spent and the present is appreciated.”

Union Square in Aberdeen said it had seen more than 60,000 shoppers on Saturday and about 330,000 for the week – up 9 per cent on the same period last year. Penny Godfrey, the centre’s marketing manager, said: “We’ve had a really busy December which has been helped by the fact that we’ve opened a number of new stores in the last few months.

“We’ve seen queues outside a number of shops and some have had to bring in extra tills. A number of retailers have gone in for pre-Christmas sales and that has been beneficial.

“We expect it to continue to be busy, as there are some people who have still not had pre-Christmas pay yet. That will keep us busy up to Christmas Eve.”

But despite positive noises from retailers, the British Retail Consortium (BRC) said shoppers were holding back in the hope of securing late bargains.

Richard Lim, an economist for the BRC, said: “Customers are under pressure. They’ve spent the year battling high inflation and low wage growth, so it’s no surprise that people say they’re waiting for last-minute bargains and another pay cheque before spending.

“Signs of a Christmas boost to sales have been hard to find so far. Our own evidence shows shopper numbers declining in the run-up to Christmas. This is the most important time of year for most retailers and for some survival will hinge on what customers do in these final few days.”

Capital Shopping Centres, which owns some of the biggest retail sites in the UK, said footfall had been strong over the weekend, while John Lewis also helped lift the gloom by reporting record sales for the second week in a row.

But the Centre for Economics and Business Research warned that overall retail sales volumes in December were expected to be down 1.7 per cent compared to November and 0.3 per cent lower than a year ago.

Chief executive Douglas McWilliams said: “Retailers are in for an austerity Christmas.”

He said the cause of the misery was “a many headed monster”, with wages failing to keep pace with inflation, leaving people worse off in real terms, while consumer confidence was “shot to pieces” amid the economic gloom, making shoppers less willing to spend the money they have.

This is despite retailers’ sales figures for December being helped by weak comparisons to last year when freezing weather conditions kept shoppers at home.

The Office for National Statistics recently reported a 0.4 per cent fall in sales volumes in November despite widespread promotions, fuelling fears that retailers were facing a bleak Christmas. Capital Shopping Centres, which owns Braehead, as well as centres across England, said its 14 sites had been “bustling” with eight million visitors over the past week.

Commercial director Trevor Pereira said: “With this being the last full weekend before Christmas Day, we expected shoppers to be out in force and they certainly have been.”

Retailers at Capital’s centres reported strong demand for traditional board games, while women’s beauty gifts were selling well at department stores. It expects a “huge spike” in late-night shoppers next week as shoppers look for early sale bargains and last minute gifts.

John Lewis saw sales hit £133.1 million in the week to Saturday, which was 10.6 per cent higher than a year ago, and the highest weekly figure it has ever achieved. Its strong performance was driven by sales of electrical items such as Kindles and iPads, while toys, Christmas decorations and furnishings also sold well.

But Mr McWilliams added: “For many retailers it will be a challenging Christmas. Those who have left their shopping late can expect bargains aplenty both before and after Christmas Day because retailers are working hard to shift excess stock and justify town-centre overheads going forward.”

Howard Archer, chief economist at IHS Global Insight, said the John Lewis figures were “decent” and would boost retailers’ hopes that a significant amount of consumers have left much of their Christmas shopping late.

He added: “To use a famous expression coined by Sir Alex Ferguson, it is now getting to be squeaky-bum time for retailers regarding their Christmas sales and also for shoppers who have delayed their purchases in the hope of getting late bargains.”