Despite price increases, train disruptions, and bad weather, major businesses including Next, B&M, and Greggs reported increased holiday sales.
High Street behemoth Next reported that after receiving a "huge lift" from the cold snap last month, sales increased by 4.8% in the nine weeks leading up to December 30.
Additionally, Greggs and the department store B&M outperformed expectations.
According to some observers, consumers are choosing less expensive solutions when prices rise.
Boots, a US company owned by Walgreens, reported a "very successful" Christmas as well, with increased demand for its more affordable "Everyday" line of items.
However, Next continued to issue a warning that rising energy costs and mortgage rates would reduce consumer demand in the upcoming year.
Next acknowledged that it will raise prices for its spring and summer clothing and home items by 8% despite its own growing expenses and supply chain concerns.
According to the company, costs will climb for consumers in the fall and winter as well, although not by as much.
Although Next reported great holiday sales, it provided a "cautious" prognosis for the next year.
Value-for-money
More proof that shoppers looked for less expensive goodies on the High Street during the holidays was presented elsewhere on Thursday.
Boots claimed that demand for its basic range increased by a third while retail sales increased by roughly 15% in December compared to the same month last year.
Greggs reported that revenues increased by over a quarter in 2022 as its empire gained roughly 150 new stores.
The bakery firm reported that there was a lot of interest in its holiday beverages and mince pies, and more people were eager to take advantage of deals on its app to save money.
As prices continue to grow at their quickest rate in over 40 years, discount retailer B&M reported that comparable sales increased across all of its stores by 6.4%. This indicates that more consumers are placing a higher priority on value.
High Street mainstays Greggs, B&M, and Next are "linked by having a presence on retail parks where sales have generally been stronger than predicted," according to Russ Mould, investment director at AJ Bell.
He cited the fact that many train strikes in December would have made it difficult for many people to visit the stores in the city center.
The Next business, which has roughly 500 locations in the UK, reported that holiday season sales were good for its physical outlets.
The company acknowledged that it may have previously overestimated the degree to which the epidemic has discouraged clients from visiting its High Street outlets.
Additionally, according to recent data from the research firm Springboard, consumers gave retail and hospitality businesses a much-needed boost before Christmas.
It reported that consumer foot traffic in December was up 5.8% from the previous month and 9.9% from the year prior.
One of the first prominent businesses to report on Christmas sales is Next, and some analysts have called the results "a pleasant surprise."
"At a time when real incomes are coming under pressure, Next has managed to beat expectations," said Mark Crouch, an analyst at the social investment platform eToro.
However, he made note of the fact that Next currently expects a decline in both sales and profitability for the upcoming year. The store anticipates the worst to happen in 2023, he added.
According to Next, earnings might drop as much as 7.6% to £795 million in the year ending in January.
Next is sometimes regarded as a barometer for the High Street, according to Mr. Crouch, and you can be sure that many stores will be in even worse situations.
In the previous year, it added a number of brands to its assortment of stores, including Joules and furniture retailer Made.com, which it acquired in November after it entered administration.
It previously owned brands including Lipsy and took over the UK's Gap online business, maintaining a High Street presence even while the brand suffered.
It is merchants like Next with a well-run multi-channel business - including online, store shopping, and click and collect - who are likely to have negotiated all the hurdles of this holiday season the best. Given all the disruption this Christmas.
The most foot traffic has been at Next's several contemporary out-of-town locations, where customers have flocked to get the greatest discounts. It's frequently referred to as a high street bellwether, yet it's one of retail's best achievers.
The second warning is that the coming year will be harder, with lower sales and earnings. But at least one retailer is prepared to weather the impending slump.
sourced from BBC News - Business
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