Retail Barometer: 2018 In Review
2018: The Year In Party Each year, Progressive Party sets out to survey the party products retail market for the year previous. The results of this survey cover the 2018 trading period, January to December – giving a fair view across all product areas and seasonal occasions.
F
irst things first, we have to thank all the retailers who responded to this year’s request for information. Everyone who gave us feedback were promised anonymity of course, giving them an open opportunity to say exactly how things faired for them, without worrying that they might be the odd one out. The collective results give us as an industry a wide-lens view as to the state of the nation for party products in the UK. So on behalf of the trade, big thanks to all those retailers who spared their time and had to re-live the highs and lows of UK retail in its present form. The UK’s retail landscape needs no introduction, but while we’re doing the hard numbers – and realities, let’s recap: We (they) voted Brexit, causing huge turbulence and an immediate effect on product prices as currency markets became hugely volatile. Amazon continued to become a new normal way of shopping not just for the current generation of millenials, but for anyone who owned a smartphone and had a comfortable sofa. And then we move onto the party specifics: Frozen 2 is still in the bottom of the Indesit, desperately waiting to be plated and thawed. Licensing overall had more for adults than for kids, and while Nickelodeon have been keeping the TV screens busy, the costume translatable icons just weren’t as abundant. Moving on, Halloween was on a Wednesday. Half of Progressive Party doesn’t even work on a Wednesday let alone rush to the high street for fake blood and Haribo. Yet somehow the party trade limped on, by and large. Price increases started to come through and have found whatever levels of absorption suited the individual retailer. Anna and Elsa became old news but classic characters had a good airing, buoyed by World Book Day – our special friend with whom we have enjoyed an annual fling (behind Halloween’s back!) for some time now. And while a fairly big majority of
How has business been for you?
retailers reported Halloween as ‘the same’ and ‘ok’, the mid-week slot did provide select spikes in business with two weekends for kids, and a naughty Wednesday night out for the grown-ups (students). As we have proudly stated for many years, we do find ourselves in a specialist market. Indies would far rather the supermarkets left superhero costumes alone, but they have it better than a hardware shop trying to sell a light bulb which can now be delivered by drone before the incumbent has gone cold. Partyware and balloons have even more specialism. Yes, people will buy a family size bunch of solid colour latex and try and make it work. But they will probably only do it once. Proper balloon displays can only be delivered from real humans in shops, as can tableware – it needs to be touched and seen, married up with the other props and bits to a colour scheme that just isn’t as easy to work out online. The party shop has itself a bit of heritage and even tech-savvy teens enjoy visiting in groups to organise outfits and décor. It’s better than a gift shop which you know will smell of a vanilla Yankee Candle (other good suppliers are available) and is filled with motivational statements machine-etched into wood. Party shops still have a bit of magic, window displays change more often and there’s a great feeling of not knowing what you’re going to come out with. We’re not saying it’s easy, it’s not, and we’ve sadly seen some great retailers fall to the wayside in 2018. But you’d like to think they want the rest of us to punch on, and remember why we are great. While we don’t wish to insert motivational clichés here (either machine-etched or type-set), if we don’t celebrate what we’re good at, why our product is great, and how we can make the best of it, then the price increases will be the least of your worries. The party trade has soul and spirit – don’t let it go.
How have you seen the average spend per customer change? 62%
How has business been for you, 2018 vs 2017? 1% 18%
6%
23%
52%
■ Significant growth ■ Slight growth
Taking the average, it’s a decline. Taking the middle ground, business has remained the same which would be a good result. With a small fraction reporting increases, the numbers suggest that growth is possible if you can hold on tight in the meantime. Never before has overhead budgeting and product selection been so vital.
27%
As with the 2017 year, the average spend per customer remains largely stagnant, which we view to mean that the perceived value of party products hasn’t lessened.
11%
1% 6%
■ Remained the same
52%
■ Increased
11%
■ Slight decline
23%
■ Remained the same
62%
■ Significant decline
18%
■ Decreased
27% JANUARY/FEBRUARY 2019 PROGRESSIVE PARTY EUROPE
19_21_23_25_27_2018 Survey.indd 19
19
17/01/2019 17:07