Christmas, or the “key festive trading quarter” (as it is hailed in retail), is tinkling towards us. This year it is flanked on one side by the FIFA World Cup, charging at the wide-open goal of greater profits; on the other side, it is in danger of being tackled by a developing cost-of-living crisis and fuel shortage that threatens to make shoppers super-glue their wallets shut.
To start with the problems and opportunities presented by having the 2022 FIFA World Cup so close to the Christmas holidays.
The World Cup, which was postponed to the winter to avoid Qatar’s intense summer temperatures, has completely derailed the algorithms retail chiefs are increasingly using to predict trade and plan their logistics. But is this really a disaster in the making?
Santa shoots, Santa scores
Reports are abounding that the Winter World Cup (as opposed to the Desert World Cup, perhaps more apt) has added a new level of uncertainty to UK Christmas grocery sales. Reuters, for example, reported recently that questions are being raised about how to persuade shoppers to buy Christmas goodies such as luxury biscuits at the same time as beer and pizza – or perhaps to figure out how to get cash-strapped consumers to spend once during the World Cup tournament and then spend again a few weeks later over the Christmas period: “This is a bit of a curveball in terms of how to plan for Christmas and a World Cup at the same time,” Ken Murphy, chief executive of Tesco told reporters last month.
It is true that the football tournament in Qatar, taking place between November 20 and December 18, falls slap bang in the important festive “commercial district” where the highly competitive sector normally generates a large part of its annual profit.
Similarly, World Cups, which traditionally take place in the northern hemisphere during the summer, tend to give UK supermarkets a big boost as households stock up on beer, wine and spirits, grills and snacks and host large gatherings. (But few BBQs in December.)
Photo: iStock
As Murphy hinted, buyer confidence was at record lows even before the government’s new economic plan, now reversed, sent mortgage rates soaring and sparked fears that a sharp fall in house prices could worsen the cost-of-living crisis.
Many think this means that the combined consumer indulgence in November-December is likely to be less than if the two main events were further apart.
But as we can gather from Barclaycard’s observations, the fact is that families take Christmas very seriously and have already begun squirrelling away funds to celebrate the holiday. If anything, the cost-of-living crisis has probably focussed minds more intensely on making sure there is enough to spend on having a good time over the winter equinox.
The FIFA World Cup should probably then be seen as an adjunct to Christmas sales rather than a Grinch-like thief – mums will not allow dads to blow the budget on beer, leaving the kids without selection boxes and plenty of pop.
In addition, there are other factors that suggest Christmas will survive the soccer competition:
Shoppers are cutting down on dining out, suggesting they are planning to celebrate at home. Even if total consumer spending shrinks, it’s a greater proportion of remaining cash will go on goods purchased in c-stores.
Supermarkets are particularly anxious over lost sales, and this might be due not to no sales but more local sales: part of cutting down on expenses is not loading the car up so much, and consumers staying local may well favour local shops.
Many Christmas-related purchases are impulse and self-treating buys. That is why companies such as Mondelēz suggest stocking Christmas-related chocs and sweets even from September, as people anticipate the holidays and start early on to buy seasonal confectionery, for example.
Consumers will also buy the same chocs more than once – a tin of sweets for Christmas in October that will inevitably have disappeared by November and be bought a second time in December.
Apart from that, it is probable that sceptics are underweighting the public’s desire to cheer themselves up on the cheap, for which the double-header of footie and festive cheer is the perfect answer.
So, instead of thinking either/or for Christmas and the World Cup, hedge bets by promoting both in store, and try to make enthusiasm for one feed the other.
As Murphy pointed out, Tesco is planning special signage in stores to draw customers’ attention to football celebration products and offers. This will be separate from the dedicated Christmas products section.
Keep your sleigh full
The opportunities for local independent retailers multiply as Christmas comes closer.
Already we are hearing about how grocery delivery or collection slots for the festive season are likely to all be booked up well ahead of the festive season. When the ongoing supply chain difficulties are also taken into consideration, the number of distress and impulse purchases from disappointed supermarket customers will doubtless be high. Popping out to the local store – there to discover the unobtainable apple sauce or Christmas crackers and wrapping paper long sold-out at Sainsbury or Tesco – will inscribe the convenience channel in shoppers’ memories as the benevolent saviour of the season.
Research by Retail Economics on how retail sales will fare this Christmas showed that retail sales by volume will be down year on year in the final quarter of 2022. However, high inflation currently the value of sales is predicted to rise. The Superdrug chain has just announced a 219 per cent sales uplift of Christmas-related skus compared to this time last year – and November is only just beginning.
In other words opportunity for profit remains, but make sure you are stocked up, and also merchandised in the most enticing manner.
The complexion of gifting is likely to change this year as the cost-of-living increases really bit. Recent research discovered that as many as 46 per cent of UK consumers think they will spend less on traditional presents this year, especially luxury brands, as funds are diverted to essentials.
However, this could prove advantageous for the C-channel as the range of Christmas items traditionally stocked by independent retailers, such as drinks, snacks, chocolates and alcohol, are substituted as gifts.
Do not neglect ordinary groceries when it comes to merchandising for Christmas. Many everyday items take on a special significance at Christmas and oversell during the festive season.
Think about nut & dried fruit displays including shelled and un-shelled nuts, raisins, candied and glacé fruit chinks and pieces, dates (especially Medjool dates), Chestnuts, and pistachio and peanut packs. Shoppers buy all these in greater quantities in the lead-up to Christmas
Likewise fruit baskets, exotic fruits and traditional treats that sit in Christmas stockings – such as easy-peeler mandarins (one of the great, evocative smells of Christmas) should be placed front and centre as a “cornucopia cue”.
Photo: iStock
Stuffing, sauces and helpful convenience packs of vegetables can attract harassed cooks looking to cater for large families, so don’t think beans and brussels sprouts are unglamourous – on the contrary, they are the essence of Christmas just as much as Toblerone and Quality Street!
Cored Pineapples, Cubed Butternut, Microwave Green Beans, Pomegranate Arils, cut vegetable bags, Vegetable Spiral Noodles and pre-ordered fresh cut fruits and vegetables will sell well all month, especially right before Christmas and New Year’s Day. Are you prepared to have these incremental sellers in stock? Don’t forget the Fresh Salsa!
This potential success will be determined by availability and visibility – so turning the store into Santa’s grotto will help send the message that everything needed for merry Christmas can be found without having to travel very far (and waste precious gasoline!).
Last year, according to Nisa, almost a quarter of shoppers planned to spend a bit more on food and drink this year to ensure that Christmas Day, Boxing Day and even New Year’s Eve were extra special. That was after the pandemic restrictions were (almost) lifted. This year, free of all restrictions, but restrained by inflation, the home fires with friends and family are looking more welcoming than ever.
So, remember: Don’t delay – It's Christmas today – at least in terms of stocking up, as customers start their seasonal spending from September onward and are now going full steam for Santa.
New rules about how and where foods high in fat, salt and sugar (HFSS) can be promoted and displayed in larger shops and online have been passed by the Senedd.
The regulations are designed to prevent impulse purchases and over-consumption and expected to help to tackle the growing problem of obesity in Wales.
The Food (Promotion and Presentation) (Wales) Regulations 2025, which largely mirror rules already in place in England, will:
restrict promotions that can encourage over-consumption, such as multi-buy offers and free refills of sugary drinks
restrict the presentation of foods high in fat, sugar and salt products at prime selling locations such as store entrances, checkouts and website homepages
apply to medium and large businesses with 50 or more employees
The Welsh government said, citing research, up to 83 per cent of purchases made on promotion are impulse buys, with almost half (43%) of food and drink products in prominent store locations promoting sugary foods and drinks.
“These regulations are a key part of our strategy to tackle Wales’ growing obesity problem,” Welsh health secretary Jeremy Miles said after the vote in the Senedd.
“We want to make it easier for people to make healthier choices and we’ll achieve this by improving the food environment around them. If we ensure healthier food and drinks are more available, accessible and visible to people in shops and stores, it will support our efforts to reduce obesity rates and improve public health.”
Miles has earlier said that the government will continue to support businesses and local authorities to implement and enforce the requirements introduced by these regulations.
The regulations will come into force in March next year following a 12-month implementation period.
JET New North Road store in Ilford, London is expecting its flower sales to cross £85,000 this year from popular calendar days, including Mother’s Day, International Women’s Day and Valentine’s Day.
Tulips, roses and mixed bunches are among the bouquets expected to sell well this Mother’s Day weekend, with predicted sales of £20-25,000.
Valentine’s Day remains the most popular flower-buying event, with sales of £35,000, while the increasingly popular International Women’s Day celebration recently led to sales of £25,000 for the family-run business.
JET New North Road in Ilford
“We’ve seen our flower sales skyrocket over the years – helped along by calendar days like these,” Kayur Patel, business manager at JET New North Road, said.
“Flowers bring so much joy, and we’re proud to be a part of helping customers bring that joy to their loved ones with a beautiful bouquet!”
Offering high-quality flowers from Amsterdam and Kenya, the Ilford-based service station has become the go-to place for quality flowers in the community - with more than 1,000 customers expected to buy Mother’s Day flowers this weekend.
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Victoria Lockie leaves Unitas for a new adventure.
Unitas Wholesale retail director and executive board member Victoria Lockie is to leave the business in April as she looks to take on a new challenge, the buying group confirmed to Asian Trader today (27).
Lockie joined the business in September 2024.
In a span of six months, she has played a pivotal role in strategically reviewing the Unitas retail proposition and the overall service provided to Unitas members.
Heading up the retail and commercial functions, she has made a significant impact by identifying strategic opportunities, developing her team and revitalising Unitas’ DE&I agenda.
Managing Director John Kinney said, “I would like to thank Victoria for her hard work and commitment in the time that she has worked at Unitas. We all wish her the best of luck with her next opportunity.”
Lockie also oversaw Unitas' Plan for Profit scheme, which is a subscription service offering independent retailers business updates, rewards, and resources to help them succeed in the convenience market, including core range guides and promotional packages.
Prior to Unitas, Lockie spent more than 12 years at NISA.
Joining in 2012 as a sales support manager, Lockie served in positions such as head of retail operations and head of key accounts. Her time at Nisa was transformative, both for herself and the company.
She also led the symbol group’s retail team through significant transitions, including Nisa’s shift from a mutual-style ownership structure to a corporate governance model.
Lockie also became a trustee for MADL (Making A Difference Locally), where she worked to help independent retailers support their local communities.
She is an ambassador for Diversity in Wholesale, Women in Wholesale, GroceryAid, and WiHTL ‘Women to Watch 2024. or many years has heavily supported the Association of Convenience Stores including the more recent Shopkind campaign.
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Brian Eagle Brown with new ShopMate 360 EPoS solution
ShopMate has introduced ShopMate 360, a “streamlined and affordable” EPoS system designed for convenience retailers.
ShopMate said the new solution ihas been developed with small retailers in mind, offering an easy-to-use till interface that requires minimal training. With an intuitive design, even those new to retail technology can quickly get up to speed, ensuring smooth daily operations.
“One thing we often hear is that many EPoS systems come with complex features that small retailers just don’t need. Their tech needs to be smart, but that doesn’t mean loading it up with all the bells and whistles – it actually means the opposite,” Brian Eagle Brown, managing director at ShopMate, told Asian Trader.
The system separates store operations from business management, allowing retailers to focus on till functionality while still having access to key back-office tools like:
Product and category management
Hotkeys and SELs
Wholesaler promotions
User management and reporting
Retailers will benefit from automatic wholesaler pricing and promotions, removing the hassle of manual price updates and ensuring accurate pricing.
Helen and Andrew Wood of Edith Weston Village Store in Edith Weston, Rutland
Additionally, integrated payments with ShopMate Pay simplify payment workflows and reduce overhead costs, offering retailers a single, streamlined solution.
“We understand that convenience retailers need a reliable, easy-to-use solution that helps them run their stores efficiently,” Eagle Brown said. “ShopMate 360 delivers just that – essential functionality without distractions.”
Helen Wood, owner of Edith Weston Village Store, has been among the first to trial ShopMate 360 alongside ShopMate Pay. She praises its intuitive interface: “We’ve found the till interface intuitive and easy to use; everything is precisely where you think it should be. And ShopMate Pay works seamlessly, exactly as you hope it would – it’s just really easy.”
Among the last few tea drinkers, Brits still have profound loyalty for their cup of tea, with Yorkshire Tea standing out as a true favourite, shows a recent survey, also highlighting fall in the popularity of tea among younger generations.
According to a national survey of 6,000 adults by Tracksuit, brand tracking expert for more than 650 consumer labels, those who drink tea, Yorkshire Tea was crowned the favourite brew, surpassing its long-standing rivals PG Tips and Tetley.
Some 24 per cent of tea drinkers said that Yorkshire Tea was their favourite, ahead of PG Tips at 17 per cent and Tetley’s at 15 per cent. Twinings came fourth with 11 per cent, well ahead of Typhoo with 3 per cent.
The survey also found a striking level of loyalty among British tea drinkers, with 39 per cent refusing to switch from their preferred tea brand, which was far higher than the typical 13 per cent loyalty rate across food and drink brands generally.
However, the survey also shows lays bare the rapidly decreasing popularity of tea among younger generations.
Some 37 per cent of people aged under 35 said that they would choose coffee as their favourite hot drink, according to a national survey of 6,000 adults by Tracksuit, brand tracking expert for more than 650 consumer labels.
Tea came third with 25 per cent of those under 35 choosing it as their favourite drink, after hot chocolate in second with 31 per cent.
Analysts said that the figures “suggest [tea’s] popularity could continue to fall in future generations”, raising concerns that beloved cuppa could face extinction as Millennials and Gen Z prefer coffee and hot chocolate to the traditional brew.
Matt Herbert, the author of the report and co-founder of Tracksuit, said, “Our research uncovers the profound loyalty Brits have for their tea, with Yorkshire Tea standing out as a true favourite.
“The data reveals that brand preference goes far beyond taste; it’s an emotional connection. British tea drinkers are weirdly loyal, which speaks to how brands have successfully woven themselves into the fabric of daily life and national identity.”