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Festive trade fears melt away as web sales soar

© Evening Times
Originally published: 05.02.2008
by Jonathan Rennie


New figures suggest that Christmas wasn't the difficult sales period retailers had feared – in fact, nearly three quarters of traders enjoyed increased like-for-like sales during the festive season, with online sales soaring by more than 50-per cent.

The statistics, from business analysts Deloitte, showed like-for-like sales increased in most sectors by an average of 2.8- per cent.

More than four million people decided to shop online on Christmas Day alone.

Jim Boyle, retail partner for Deloitte in Scotland, said: "The figures show that many retailers had a good holiday season. The vast majority are growing and in some sectors, are growing quickly.

"Games, books, music and video retailers saw strong like-for-like increases driven by significant demand in gaming.

"Christmas 2007 was the year online shopping really came of age."

Glasgow-based sports shop Greaves Sports saw its online sales soar over the Christmas period.

The firm also says that its sales increased by 185- per cent during the same period in 2006.

Managing director Sandy Greaves said: "Over recent years our online facility has grown to become a key area of the business."

Overall, the large food retailers, with their expanding nonfood ranges, enjoyed strong performances.

Shops offering premium produce such as health and beauty retailers and high-end department stores also did well. Likewise, retailers of hi-tech electrical goods and video games consoles were also winners this year, seeing sales rise by 13- per cent.

However, clothing and footwear sales dipped and the more mainstream electrical retailers report difficult trading conditions.

Electricals reported almost a 2- per cent drop in their like-for-like sales.

The household goods sector was worst affected with like-for-like sales dropping by more than 5- per cent.

Mr Boyle said: "The signs indicate that the season was not as bad as first feared."

However, the outlook for the year ahead is one of caution.

Mr Boyle said: "The era of easier credit, lower interest rates, rising house prices and a stable economy is at risk.

"Retailers can also no longer rely on cheap sourcing to drive prices down.

"Growth is slowing and costs are rising, putting pressure on retailers' profit margins."

 
 

 
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