14 minute read
Feedback: Retail Barometer
Looking Backwards And Forwards
With the doors of non-essential retailers remaining firmly closed from part-way through December 2020 until April 12, 2021, it was a worrying, uncertain first few months for many in the retail industry, to include gift shops.
However, showing their resourcefulness and resilience, gift indies not only used the opportunity productively to give their shops a makeover, but also strengthened their online presence and encouraged people to shop locally.
With working from home the norm for those that could, the upside to 2021 was that people re-discovered their local high streets.
PG&H’s unique annual retail barometer survey, now in its 16th year, gives the full lowdown, revealing that, for the vast majority of gift indie respondents, it was a pretty good year.
Looking Back To 2021 How did your business fare in 2021 compared to 2020?
Despite an unprecedented start to the year, with doors firmly shut for almost four months, over 90% of those surveyed said that their business had fared better or the same in 2021. Compared to 2020, which was blighted by three lockdowns, with the ‘closed’ sign up, over 90% said that the average spend had increased or remained the same, with just 9% saying that it had declined.
Above: Retailers remained closed until April. Left: Christmas was a cracker for many indies.
How was Christmas 2021?
Having experienced an extremely unsettling Christmas in 2020, with retailers fearing and eventually experiencing another lockdown, thankfully, it was a very different story in 2021. A whopping 90% of respondents said that Christmas 2021 was better or the same, with many independent gift retailers across the board reporting that it was their best Christmas yet, especially the final week.
How did the average spend compare to Christmas 2020?
Bringing much Christmas cheer, a huge 93% of survey respondents reported that the average Christmas spend increased or remained the same, significantly up from 81% in 2020.
Declined 7%
Remained the same 31%
Increased significantly 22%
Increased slightly 40%
2020 v 2021
Better 78% Same 13% Worse 9%
How Did Your Business Fare Over The Last Year?
PG&H looks back at seven years of Retail Barometer data
2019 v 2020
Better 23% Same 13% Worse 64%
2018 v 2019
Better 37% Same 24% Worse 39%
2017 v 2018
Better 45% Same 28% Worse 27%
2017 v 2016
Better 37% Same 21% Worse 42%
2016 v 2015
Better 56% Same 18% Worse 26%
2015 v 2014
Better 50% Same 27% Worse 23%
Thumbs Up
Greeting cards expansion took the number one spot for gift shops last year, (jumping up four places by comparison to 2020), with almost half of those surveyed saying that expanding their card offer had the most positive effect on their business. Attracting new customers leapt up two places to take the number two slot, with ‘shop local’ campaigns in third place, while a newcomer to the chart this year was retailers participation with online platforms such as Trouva, Faire and Ankorstore. Interestingly, online/website activity, which took the top spot in 2020, fell to sixth place.
Other factors that had a positive impact on business in 2021 included a change in customer behaviour, driven by the impact of Covid, with more people wanting to support their local businesses.
(Last year’s position is shown in brackets) 1 Greeting card expansion (5) 2 Upsurge of new customers (4) 3 ‘Shop local’ campaigns (2) 4 =Participating with online platforms (-) 4 =Promotional activity (3) 5 Product diversification (8) 6 Online/website activity (1) 7 Increased social media activity (6) 8 Collaborating with local businesses/groups (-) 9 Winning an award/media coverage (1) 10 Local competition closing down (7)
Thumbs Down
Unsurprisingly, for 86% of respondents, the effect of the Omicron variant had the biggest effect on business last year, with half also citing reduced visits from reps and agents. Almost a third highlighted fewer trade shows.
Also highlighted was geographical exclusivity, with over half of respondents (52%) citing it as an issue.
(Last year’s figures are shown in brackets) 1 Covid-19/Omicron 86% (-) 2 Reduced visits from reps/agents 50% (10) 3 Fewer trade shows 30% (6) 4 Supply chain disruptions (post-Brexit/the pandemic) 29% (-) 5 =Competitive websites 27% (7) 5 =Parking issues 27% (9) 6 =Competition from multiples 25% (4) 6 =Expansion of gift and home products in supermarkets 25% (2) 6 =Suppliers’ websites selling direct to the consumer 25% (4) 7 Empty shops in the vicinity 23% (-)
8 =Expansion of online retail platforms such as Trouva,
Faire, Ankorstore 20% (-) 8 =Discount/deep value retailers 20% (8) 9 Charity shops selling gifts 10% (5) 10 The economy/inflation 9% (1)
The Green Scene
With the huge focus on sustainability, almost 80% of independents said that a product’s sustainable credentials had influenced their sourcing over the past year. Three quarters of respondents said that they had expanded their range of eco products in 2021, with 43% confirming that customers’ environmental concerns impacted on gift sales last year.
Online Sales Do you have a website for your shop?
Over 70% of indies now have a transactional website, which also brings business into the shop, with almost two thirds planning to develop their website further over the coming year. For stores that do not have a website, over a quarter of those surveyed said they would be looking into building one this year, while a third of respondents remained undecided.
Product Matters How did the following sectors fare in 2021?
(‘Star’ performers have been shown in bold)
Category Increased Stable Declined
Bath and body 43% 52% 6% Chocolate/confectionery 48% 33% 19% Clothing 45% 40% 15%
Decorative home Accessories 56% 31% 13%
Fashion accessories (eg scarves, bags) 47% 34% 19% Food gifts 24% 65% 12% Furniture 12% 67% 22% Games and puzzles 59% 36% 5% Garden gifts 47% 47% 5% Gift books 38% 48% 14% Gift stationery/journals 33% 50% 17%
Greeting cards 76% 16% 9%
Giftwrap 41% 53% 6% Home fragrancing 62% 31% 6% Impulse/novelty items 29% 63% 8% Jewellery 35% 42% 23%
Pet-related products 63% 38% 0%
Plush 50% 42% 8% Seasonal gifts 47% 31% 29% Sustainable giftware 48% 52% 0% Tableware/kitchen gifts 17% 83% 0% Toys & games 35% 65% 0%
Wellbeing 67% 33% 0%
‘Must Have’ Products Which three gift/home ranges could you not do without in your shop?
Indies confirmed that their stand-out products in 2021 were (in alphabetical order): Jellycat (plush); Joe Davies (Equilibrium) and Joma (A Little bracelets).
Top left: A greeting card design from Carte Blanche Greetings. Top right: Sustainability was a major focus. Above: Joma Jewellery’s ‘A Little’ bracelets.
Trade Shows Lead The Way How do you normally source products?
When it comes to sourcing products, trade shows are way out in front confirmed 90% of indie respondents, with 57% sourcing from a rep or gift agent, and half now sourcing product online. Other key sourcing avenues include reading trade magazines such as Progressive Gifts & Home.
At Your Service
While just over a third of respondents confirmed that they would be increasing their suppliers this year, the majority said that they would be staying with the same suppliers in 2022. As for service levels, almost half (47%) said it had improved slightly or remained the same.
Made In Britain When sourcing product and making a buying decision, how important is it to you as to whether a product has been made in Britain?
The importance of products being made in Britain has soared, with 91% (compared to 83% last year) confirming that it influences their purchasing decisions. In addition, some 80% of indies highlighted that from a customer perspective, made in Britain was also seen as important.
Top: Spring Fair. Above: Among Best Kept Secrets’ Just Because candles. All products are made in the UK.
Threats And Opportunities
Supermarket Challenge With supermarkets an essential retailer during the lockdowns last year, allowed to sell everything, to include gifts and homewares, how did indies view them in 2021?
Neutral 21%
Threat 60% Serious threat 19%
l “We have seen the growth of a new selling season of pre-Christmas, roughly between September to October, which is almost as strong in terms of sales as Christmas.”
Third Party Selling
With shopping online seeing huge growth in 2021, due to the lockdowns and shop closures, it comes as no surprise that a massive 88% of indies viewed third party online operators in the gift and home sector - to include Amazon - as a significant threat in 2021.
Neutral 12%
Threat 40%
Serious threat 48%
Selling Direct To Consumers
As for gift and home suppliers selling online direct to the public, a hefty 83% (compared to 95% last year) viewed it as a threat or serious threat.
Serious threat 33% Threat 50% Neutral 17%
Garden Centre Growth
With garden centres also allowed to stay open during lockdowns, almost two thirds of indie respondents said that they viewed them as a threat or serious threat, albeit down on last year’s figure (72%).
Serious threat 21% Threat 43% Neutral 36%
Face Masks A Winner Driven by the pandemic, did you introduce any new products in 2021?
Unsurprisingly, fabric face masks, gift-led hand sanitiser, house plants and loungewear were among the key products that gift independents did particularly well with last year, with almost three quarters of indies introducing or expanding the sectors as part of their product mix.
Investing In The Future What investments have you made in your shop in the last year?
For the second consecutive year, websites remained the biggest investment for gift independents, with almost two thirds of those surveyed either developing or re-launching an existing website.
Other ways in which respondents gave their shops a different look and feel was through putting in new units, improving the lighting, re-designing the layout and changing the displays.
Above: An Eco Chic fabric face mask.
Up For Promotion
Over three quarters of respondents said that they had run promotions in 2021, with social media activity way out in front and taking the top spot. This was closely followed by in-store money off/discount promotions and loyalty cards. Giveaways on Instagram, selling on Facebook and late night shopping evenings were other ways in which gift indies promoted their stores.
Last year, did you run promotions and/or advertising for your shop?
(Last year’s figures are shown in brackets) 1 Social media promotions (1) 2 In-store money off/discount promotions (4=) 3 Loyalty cards (2) 4 Gift voucher scheme (4=) 5 Charity fund-raising (6) 6 = Customer events (-) 6 =Free gift promotions (5=) 6 = Press advertising (7=) 7 = BOGOF (or similar (7) 7 = Collaboration with other local retailers/businesses (3) 8 Leaflets (5=)
Socially Speaking
A massive 83% of independents confirmed that they now use social media as a vital tool in promoting their business, with almost all respondents (95%) using Facebook, followed by Instagram (81%).
Glittering Prizes Did your shop win any awards in 2021?
An array of award successes or shortlisted places helped to lift the profile of almost a fifth of gift independents in 2021, among them The Greats, organised by Progressive Gifts & Home, and their sister awards, The Retas, organised by Progressive Greetings. Respondents also highlighted success in the annual Muddy Stilettos, with many indies also receiving recognition in local business awards and window display competitions.
Community Involvement Which local organisations were you involved with in 2021?
(Last year's figures are shown in brackets) Town centre retailing groups 50% (53%) Charities 39% (23%) Federation of Small Businesses 25% (30%) Chamber of Commerce 21% (23%) Schools 21% (10%)
A Word Please
Once again, indies chose the word ‘challenging’ to best describe the gift and home industry in 2021, alongside more positive words that included ‘lovely’, ‘lively’, ‘thriving’, ‘optimistic’, ‘buoyant’ and ‘exciting’.
Additional words to describe the sector last year were evolving, inventive, spirited and surviving.
Looking To The Future
Trade Show Schedule Are you hoping to attend any trade exhibitions this year?
Above: PG Live 2021.
Some 80% of indies confirmed that they would attending trade shows in 2022, led by Spring Fair, Autumn Fair, Home & Gift, Harrogate and Progressive Greetings Live.
Finding New Avenues Which product areas would you like to further expand/diversify into in 2022?
Eco/sustainable products came top of the list when sourcing new products in 2022, cited by 42% of indies respondents, followed by expansion on the greeting card front (30%). Also in the top five were men’s gifts, pet themed or related products and gift-led stationery.
Celebrating The Jubilee Are you planning any celebrations to mark the Queen’s Platinum Jubilee this year?
With excitement starting to build for the Queen’s Platinum Jubilee, and an extended four day Bank Holiday weekend taking place from Thursday 2 June until Sunday 5 June, over a third of respondents will be making the most of the opportunity, both in terms of in-store and window displays as well as commemorative product.
Those surveyed revealed that promotions will include using the front window to create a Platinum Jubilee display; hosting a celebratory Jubilee day with complementary Jubilee party food, drink and bunting, stocking Jubilee gifts and party items; Jubilee-specific in-store baking; and helping to organise street parties and other Jubilee themed local events in collaboration with local traders.
Above left: Greats winners The Bean Hive’s Davina Parkhouse and her daughter Emelye. Above right: Eco/sustainable products are leading the way. Above: A Dunoon Queen’s Platinum Jubilee mug.
l “We have witnessed growing anti-Chinese sentiment, with more customers looking at where products are manufactured. However, unfortunately, they still grumble about the price of UK manufactured products.”
Giving Shops A Makeover Do you intend to make any improvements to your shop in the coming year?
Almost half of those who took the survey (44%) confirmed that they will be making improvements to their shop or shops this year. Among the items on the list are giving the shop a lick of paint; updating fixtures and fittings; investing in new computer systems; putting in new shelving and display units; rebranding and new signage, and investing in an EPOS system.
Left: Shop improvements were important for many. Below: Petrol prices are going up.
Cause For Concern
With consumers returning to high streets and genuinely wanting to ‘shop local’ to support their local independents, respondents confirmed that they were understandably far more
worried about supplier price
increases this year, with three quarters of those surveyed (75%) citing it as their biggest concern.
Other major concerns included soaring inflation and the cost of living squeeze, to include a huge rise in energy bills and fuel in 2022, inevitably impacting on customers’ disposable income. Supplier shipping issues and stock availability also remain a problem.
As an independent retailer, what are your biggest concerns in 2022?
(Last year’s figures are shown in brackets) 1 Price increases (2) 2 Consumers not returning to the high street (1) 3 Business rates increase (3)
High Expectations Overall, what are your expectations for your business in 2022?
Following an excellent Christmas 2021 for many gift independents, the good news is that there is plenty of confidence around, with almost all of those surveyed (96%) confirming that they were confident that they would see growth this year. However, less than a quarter (22%) are planning on recruiting more staff, with three quarters intending to stay with current levels, and less than a fifth of respondents planning on opening another shop in the coming year. Additionally, just over three quarters of indies surveyed predicted that they will see online ordering increasing.
Remain about the same 27% Slight decline 4% Significant growth 9%
Marginal growth 60%
l “There is definitely a move towards ‘useful’ and ‘usable’ gifts, away from the purely decorative.”
Crystal Ball How do you view the future of independent gift shops in the next three to five years?
Neutral 26% Weak 11%
Very positive 16%
Positive 47%
A Bit Of Fun
A Royal Treat
Who would you most like to receive a gift from? (Celebrity, politician, dignitary, fictional character etc., dead or alive).
Once again, HM The Queen topped the polls for the person most gift shop owners would like to receive a gift from, closely followed by David Attenborough.
Great To See You!
The two females that gift shop owners would most like to see walking through their doors would be HM The Queen and the Duchess of Cambridge, while in the male stakes, David Attenborough would get a very warm welcome.
However, PM Boris Johnson and Priti Patel would be likely to find the ‘closed’ sign up!
