Combatting 'Drab' December: Retailers Get Creative with Grottos and Wine to Boost Sales

In a concerning trend for the retail sector, foot traffic in shops has declined for the second consecutive year, with a reported 2.2% decrease in December 2024, following a similar downturn in 2023. This decline, illuminated by the British Retail Consortium’s analysis of Sensormatic data, is largely attributed to persistent cost of living pressures, the growing popularity of online shopping, waning consumer confidence, and adverse weather conditions.

Retailers are employing innovative strategies to create a more enticing shopping experience. Tom Rowley, owner of South London’s Backstory Bookshop, offers complimentary wine to customers who complete their Christmas shopping in-store, recognizing that such personal touches are absent from online shopping. Similarly, Leanne Fridd, from Bookbugs and Dragon Tales in Norwich, has implemented a Santa’s grotto alongside author events to attract more customers, though she reports a reduction in overall spending despite steady footfall.

In Barrow, Jenny Fazackerley emphasizes year-round events to draw shoppers, collaborating with local businesses to fund initiatives during school holidays and major events, leading to increased foot traffic. These community activities, such as a soapbox derby and themed entertainment like ‘dino day’, have collectively enhanced the shopping experience but remain a challenge for the area’s economy overall.

Amid these localized success stories, the broader retail landscape appears grim with a 2.5% drop in spending during the final quarter of 2024. Helen Dickinson, BRC chief executive, stresses the impact of drab December shopping on the overall performance of UK retail. Experts indicate that cautious consumer spending, influenced by economic discourse and governmental fiscal decisions, has contributed to the sector’s struggles. The BRC is advocating for reduced business rates to aid retailers.

Looking ahead, notable retailers like Tesco and Sainsbury’s are poised to share their Christmas sales figures, which could further illuminate the state of the retail market. Optimists suggest that a decrease in inflation and interest rates might pave the way for a more hopeful retail landscape in 2025, as articulated by industry analyst Russ Mould.