Children returning to school after an illness-ravaged December provided an unexpected, one-off boost to Britain's economy in January, when growth in output exceeded forecasts, data showed today (10).
The Office for National Statistics (ONS) said Britain's economy expanded 0.3% month-on-month, after a drop of 0.5 per cent in December - a reading that is likely to further allay recession fears, at least in the short term.
A Reuters poll of economists had pointed to growth of 0.1 per cent.
Britain economy had proved "more resilient than many expected, but there is a long way to go," said finance minister Jeremy Hunt, who presents his annual budget next week.
Hunt looks set to keep his grip on the public finances in Wednesday's budget, refraining from big tax cuts or spending increases until the next election comes closer into view.
The ONS said half of the 0.3% growth rate comprised the education sector, as a result of children returning to school after a significant drop in attendance in December.
The entertainment sector - helped by the men's soccer Premier League returning to action after the 2022 World Cup - was another fillip for the economy. In a sign of deeper problems for the economy, manufacturing and construction contracted.
"Looking beneath the surface, the figures suggest the economy is on weaker ground than it appears," Ruth Gregory, deputy chief UK economist at consultancy Capital Economics.
Martin Beck, chief economic advisor to the EY ITEM Club forecasting group, said widespread strikes in December and January likely explained why the economy remained below its level in November.
The ONS said economic output in January stood 0.2 per cent below its pre-pandemic level of February 2020 - in contrast to other advanced economies - and had shown zero growth over the last three months and the past year.
The government had previously reported high rates of flu and scarlet fever during December. Fear of contracting COVID-19 over Christmas may also have contributed to children being taken out of school early.
Education represents 6 per cent of Britain's economy and student numbers are the main way the ONS measures the quantity of output the sector provides.
As the final key retail season of the year approaches, Nisa retailer NP Group is gearing up for Christmas with a renewed focus on store activation and point-of-sale (POS) strategy to drive sales following a successful Halloween.
With seasonal shopping trends in full swing, effective in-store activation and visibility are crucial for smaller retailers to capture customer attention and keep up with larger competitors. Data from Retail Economics shows that UK shoppers spent approximately £10 billion on seasonal products in 2023, with Halloween contributing £650 million alone, marking a steady increase in seasonal shopping over recent years.
POS and store activation remain pivotal in capturing these sales opportunities, as shoppers are more likely to make purchases when displays are both visually engaging and convenient to access.
Anthony Furnell, Head of Retail Operations at NP Group, which operates six stores, has significant experience in retailing. From his background with major retailers and suppliers, he understands that capitalising on seasonal periods is critical for convenience stores.
“Seasonal activation is really important. It’s a very competitive sector, and we’re not just competing with large supermarkets; we’re competing for convenience and ease for our customers. If a customer doesn’t see it, they don’t potentially buy it, so activation is key.”
NP Group’s Halloween strategy this year exemplifies how store activation can capture attention and improve sales. The Darwen store has allocated a dedicated Halloween space, complete with a hanging spider from the ceiling, vinyl window displays, and strategic POS items like floor stickers and overhead signs. This dynamic approach engages customers, driving incremental purchases and creating a one-stop shop for seasonal needs.
However, it’s not one-size-fits-all; each store location is tailored based on size, layout, and customer demographics.
“Our Menston store, for example, is our smallest, so we have to be selective about our seasonal range. Space is key—making sure the displays are in the right place is essential,” Anthony notes. “We’ve also have a group store WhatsApp to share best practices and ideas across locations, ensuring a cohesive yet unique seasonal activation for each store.”
Planning and evaluation are equally important in maximising seasonal sales. To meet the varying demands of each store, NP Group conducts pre-sales planning and end-of-season evaluations, which allows them to better anticipate the stock and POS materials required for future seasonal events.
“By evaluating what sold well and what didn’t, we can refine our approach and ensure we’re offering the right products in the right places for customers,” explains Anthony. “Seasonal displays and POS act as magnets that draw the eye and engage customers on a whole new level. In today’s fast-paced retail environment, it’s vital to have a captivating, well-organised space for seasonal items that entices shoppers, encourages browsing, and, ultimately, drives incremental sales.”
In addition to Halloween, Christmas activation is also underway, with stores gradually introducing festive products.
According to Anthony, “Christmas is another significant period where creative, well-placed POS and choice can create a festive in-store experience, encouraging customers to shop locally and find what they need without visiting larger stores.”
Both Halloween and Christmas offer strong opportunities for convenience retailers to increase footfall and improve basket spend. The rise in seasonal spending in convenience settings, combined with strategic activation, ensures that stores remain competitive and relevant for shoppers seeking both impulse buys and essential items.
For retailers, these activation strategies not only boost sales but also enhance customer satisfaction by creating an engaging shopping experience that keeps them coming back throughout the winter season.
Around two thirds (65 per cent) of people affected by the Horizon scandal have said it impacted their family and relationships, while many respondents report estrangement from family members because of the scandal, according to a paper published today (1) by the Post Office Horizon IT Inquiry’s listening project.
The paper title In Your Own Words illustrates the various challenges the Horizon scandal has inflicted on people’s relationships, with respondents reporting the breakdown of relationships, estrangement from family members, and acute loneliness. Some adult children of former sub-postmasters shared how they experienced bullying, financial issues and mental health struggles because of the scandal. Others reported how their parents have died before knowing the truth about the Horizon scandal, which magnified their grief.
For many the post office was a family business legacy, making subsequent issues more impactful. Many reference their parents dying before knowing the truth about Horizon, magnifying the grief of these bereavements.
240 people — including current and former sub-postmasters, family and friends — have anonymously submitted their stories to In Your Own Words so far. This paper covers responses from March 2024 to August 2024.
Some of the anonymous responses mentioned in the paper are as follows:
"“I’m 66. I’ve lost 18 years of a good relationship with my daughter. I’ve lost me.”
“My children had their childhoods abruptly taken from them when the gravity of the situation became too serious for me to shield them any longer.”
“My mother was worried for us and put a lot of her savings into the account. These savings were meant to be left to her grandchildren a regret I will live with until I die.”
“Seeing the effect on my children was extremely difficult and remains a sore subject for me to this day.”
“We would like to clear Dad’s name, so that this isn’t a part of our families inherited trauma and that his memory left is true.”
“What amount of compensation would be adequate for the stress and pain endured over two decades? What would be considered sufficient?”
“The scandal put an enormous strain on our young family. Instead of enjoying the early years of our marriage and our daughter's childhood, we were consumed by the issues at the Post Office. The stress affected our relationship, leading to frequent arguments and a pervasive sense of frustration and helplessness. Our daughter, though too young to understand, was indirectly impacted by the tension and reduced quality time with her parents.”
“My wife has replaced thousands of pounds of money that she thought she had lost due to her illness and died feeling a failure.”
The Federation of Independent Retailers (The Fed) has launched an exclusive benefits scheme for Fed members.
Called FedPlus, the scheme offers a range of discounts on a host of goods and activities, from everyday purchases to luxury products.
Through FedPlus, Fed members will have access to a range of fantastic money-saving benefits covering a wide variety of areas – from health and well-being to home and car essentials, and from food and drink to fashion and tech, entertainment, travel and experiences.
There is a Savings Calculator to show how much has been saved, based on monthly or annual spending, on a range of everyday categories. The Savings Calculator will generate a personal savings total and provide links to the individual deals.
Launching FedPlus, National President Mo Razzaq said: “In my inaugural speech at the Fed’s Annual Conference in June, I spoke about the importance of providing more benefits to help members make money, save money and make business easier.
“Just four months on, we are delighted to bring you FedPlus. This is an exciting new addition to our ever-growing list of member benefits which brings you quick, at your fingertips access to several offers across a wide range of categories so the money in your wallets and purses goes even further in these financially strained times.”
Members can access the scheme through thefedonline.com website. It went live yesterday (October 31).
FedPlus is managed and run for the Fed by Parliament Hill Limited, which has been providing benefit management solutions for membership organisations for the past 20 years. Top name companies offering discounts include Virgin Experience Days, Nuffield Health, Hotpoint, Halfords, Boots, Curry’s and EE.
Tom Sparke, joint managing director and client services director at Parliament Hill, said: “We are looking forward to working with the Fed to assist them in the fantastic support that it provides for its members.
“The Fed has a strong commitment to supporting its members, which aligns with the Parliament Hill ethos of placing the needs of our clients’ members at the heart of what we do.”
Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.
The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.
"In Asia, China stands out as a market where the consumer is very weak. Most other Asian markets are actually okay," he said, adding the company had not yet seen Chinese stimulus measures having any impact on consumer behaviour.For years, brewers have relied on a strategy of developing and promoting their more expensive premium brands to offset an overall decline in drinking.
Aarup-Andersen said he remained confident in the long-term growth potential of premium beer and that the category will comprise a significantly larger portion of Carlsberg's business in a decade.For now, however, the company is adjusting its marketing.
"In markets where we are seeing a significant pressure on premium, we are reallocating some of our focus into making sure that we are promoting properly around the right mainstream brands," he said.
The world's third-largest brewer behind Anheuser-Busch Inbev and Heineken said third-quarter sales rose 1 per cent to 20.5 billion Danish crowns ($2.98 billion), compared with 20.7 billion expected on average by analysts in a poll gathered by the company.
Despite the shift in consumer behaviour, Carlsberg said it still expects full-year organic operating profit growth to be between 4 per cent and 6 per cent. The company lifted its full-year guidance in August.
Also on Thursday (31), the world's largest beer maker Anheuser-Busch InBev reported third-quarter profits, revenues and volumes behind forecasts. AB InBev's third-quarter statement highlighted stronger growth for its more expensive beers, like Corona, which grew 10.2% outside of its home market, Mexico, during the period.
Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.
According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.
Refill stations for personal care, cleaning products, dry goods, and beverages are also in high demand. Consumers, particularly Gen Z women, are keen to use these stations, provided they offer a cost-saving of 6-10 per cent compared to packaged goods. The study indicates that older shoppers are less likely to use refill stations unless prices are reduced by 15 per cent or more, which Vypr said shows the importance of price in driving consumers to adopt sustainable shopping habits.
The third priority for brands and retailers is to adopt sustainable packaging. Awareness of eco-friendly packaging is high, especially among younger generations. Two-thirds of UK consumers say they expect to pay more for sustainably packaged products, and that figure rises to 86 per cent among Gen Z and Millennials. However, Vypr’s research suggests that while shoppers express willingness to pay more, price sensitivity still plays a crucial role.
Ben Davis, founder of Vypr, said: “There’s often a disconnect between consumer intentions and actions. Brands need to understand that simply offering sustainable options may not be enough if price points don’t match consumer expectations.
“For Gen Z and Millennials, sustainable products need to be competitively priced or risk losing long-term loyalty. We tested this by presenting products with and without the label ‘100 per cent Recycled Packaging’ and found price remained the key purchase decision-making factor for most consumers.”
Another factor in building loyalty among younger consumers is to showcase social responsibility. The research reveals that 60% of shoppers are more likely to shop at retailers that partner with food rescue organisations or promote a charitable cause. Among Gen Z and Millennials, this figure jumps to 69%, showing a strong preference for brands that demonstrate a social purpose.
The report also reveals that 85% of shoppers are willing to pay a deposit for reusable products, though it is younger consumers, particularly those aged 18-24 who express the strongest support for such initiatives.
The Consumer Horizon report which provides insights shaping retail, product innovation, and consumer behaviour going into 2025, can be seen here.