With Christmas now not far away, many are watching closely to see how shoppers navigate the pressures of the season.
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00:00So, what we have to think about is that we're coming out of this period of fairly high inflation.
00:07And so, that's had a clear effect on just how much consumers are paying for the goods
00:12that they're buying. And what we've been noticing over the past few months is that the weight
00:17of shoppers' shopping baskets is getting heavier. So, that's to say that sales volumes are higher
00:23than a year ago. But what we are seeing is that the amount paid for goods is starting
00:28to ease somewhat a little bit. And that's partly driven by that easing inflation that
00:33I've been talking about.
00:34With the cost of living crisis continuing to impact household budgets, both consumers
00:39and retailers have had to make big adjustments to how they approach this time of the year.
00:44Especially over the past year or so, consumers are really thinking twice about making particular
00:48purchases. Now, we have seen a bit of discounting going on in mainly non-food categories, so
00:54items of fashion, electrical items, all in an effort to spur consumer spending. And that
01:00has borne out. So, for instance, one really good performer over the past couple of months
01:06has been audio devices, so phones. So, a recent iPhone came out in September. So, that's one
01:15category where we've seen a bit of discounting going on and that's performed fairly well.
01:19How are retailers preparing for the potential challenges this festive season, such as supply
01:24chain issues, staffing shortages or those changing consumer behaviours?
01:28So, retailers have been moving slightly earlier than they normally would. So, typically, they'd
01:34start their hiring around about October, potentially slipped into November as well. But, you know,
01:39they've had a few scarring incidents, if you like. So, we've had the supply chain disruption
01:44that you've mentioned. We had the HGV lorry driver shortage, if you can cast your mind
01:49back a few years ago. So, all of that is to say that retailers are being a bit more
01:54cautious and moving slightly earlier. So, we're seeing that hiring window shift into September.