24 Dec 2010

Christmas Eve rush boosts retailers

After the big freeze hit pre-Christmas high street sales, shoppers were out in force today – but with tough times expected in the new year, they were spending carefully.

Retailers were holding out for some last-minute Christmas shopping today after weeks of bad weather.

The worst winter for 100 years meant that many people postponed their trips to the shops, which have been preparing for panic buying.

It’s not Boxing Day – but the sales have started before Christmas has even been unwrapped.

This Christmas Eve is many shoppers’ first day off since the snow

The shops are desperate to warm up our wallets after the big freeze sent a chill down the high street.

Last week’s snow across the UK hit during what should have been the busiest shopping week of the year. Visa says high street sales fell 0.3 per cent because people could not get to the shops.

For the shops, there was a lot riding on Christmas Eve – they have to make up for time lost in the snow and bad weather.

But they did more shopping at home – online sales rose by 11 per cent.

For the shops there is a lot riding on today. They have to make up for time lost in the snow and bad weather, and they may be minded that next year could be an austere year with a rise in VAT and the public sector job cuts starting to bite.

That is why they are trying to get people spending now, with early sales and big discounts.

Comparing the situation on the high street now with two years ago, Richard Dodd of the British Retail Consortium told Channel 4 News that “things are actually quite a bit better than they were then – although they’re still difficult”.

Things are quite a bit better than they were two years ago – although they’re still difficult. Richard Dodd, British Retail Consortium

Shoppers told Channel 4 News the “crisis factor” is still here, and they felt they did not have the money to spend that they had five years ago.

Insofar as it is a guide, the stock exchange ended the year on a bit of high. The FTSE is above 6000 points for the first time since June 2008.

The index of blue-chip shares broke through the symbolic mark to finish up 12.85 points, or 0.2 per cent, at 6008.92.

A late rally in retail stocks helped the index as investors bet on a late surge in consumers’ Christmas spending.