Thursday 26 December 2013

Boxing Day internet sales expected to top £540m

Analysts believe online sales make up just a fraction of £2.6bn expected to be spent on Boxing Day as shoppers research online but buy on the high street
Sales already on at Oxford Street
Sales already on at Oxford Street. A large proportion of the high street has been offering discounts for several weeks. Photograph: Paul Brown/REX/Rex Features
Millions of shoppers are expected to hit the high street on Boxing Day for the biggest shopping day of the year – despite many having already snapped up bargains online on Christmas Day.
Internet sales were expected to top £350m on Christmas Day, 15% more than last year as shoppers unwrapped tablet computers and smartphones and put them straight into action. This will increase on Boxing Day, with online sales predicted to be worth £540m.
"The Boxing Day sales have traditionally been the day when we splash our Christmas cash, however the relentless growth in online shopping, and ever-earlier sales, means that more and more of us are taking to the web on Christmas Day to secure the best bargains," said a spokesperson from Barclaycard, whose research found that almost a third of its customers planned to shop online and only 27% said they would brave the crowds on the high street (27%).
But rather than a straight division between those shopping online and those going into stores, analysts said consumers were combining the two by researching their purchases on the internet but doing the actual spending in the stores.
"Boxing Day remains the stalwart of sales days in the shopping calendar and this year the sales will start earlier than ever, with retailers pulling the trigger and launching online campaigns on Christmas Day, so shoppers can browse the sales over their turkey and pick up a bargain. Most, however, will keep their sales goods to the shop floor," said David McCorquodale, head of retail at KPMG.
John Lewis will begin its online sale at 5pm on Christmas Day while Marks & Spencer and Currys & PC World launched their sales on Christmas Eve. John Lewis said that Christmas Day and Boxing Day last year were its busiest online shopping days of 2012, and it expects to repeat that this year. Shoppers picking up goods they have already ordered online will boost the number of high street visitors on Boxing Day.
Online transactions make up just a fraction of the £2.6bn total that will be splashed out on Boxing Day, according to Verdict Research, as many shoppers research their purchases online but do the spending on the high street.
Birmingham's Bullring shopping centre is expecting over 200,000 visitors, which will compete with the first weekend in December when the last pre-Christmas payday combined with US-style Black Friday discounts to draw in 230,000 visitors. At least 800,000 shoppers are expected to hit London's West End to snap up bargains from the likes of Selfridges and Topshop.
Smartphones are likely to play a growing role in helping shoppers quickly bag bargains they have had their eye on, sending mobile sales soaring on big discount days such as Boxing Day and Black Friday.
Andrew McClelland, chief operating officer of IMRG, said: "Mobile device usage really is changing the way we shop." He said smartphones accounted for 20% of online sales via mobile devices as shoppers bought items on the move, but tablet computers, which tend to be cheaper than laptop or desktop computers, were allowing more and more people to shop easily online from the comfort of the sofa.
Furniture and homewares, clothing and electrical goods are all expected to sell well post-Christmas, potentially offering a boost to stores that have struggled to sell big-ticket items during the economic downturn.
Shoppers in the south-east of England, where the housing market has been buoyant, are likely to splash out on large homewares but shoppers in the north of England, where prices have not moved on, may be less exuberant, according to McCorquodale.
"I don't expect consumers to throw caution completely to the wind. The average shopper has a limited budget and needs to stick to it: confidence doesn't feed the family, cash does, and until wages rise, this cost focused mentality will be here to stay," he said.
This year's Boxing Day sales may have less impact as a large proportion of the high street has been offering discounts for several weeks. Clothing stores and shoe shops have been keenest to offer bargains but department stores Debenhams and House of Fraser have been offering deals across the store.
Nearly three quarters of 100 major retailers monitored by PwC, the accountancy firm, were on sale last week with discounts averaging 46%. Marks & Spencer was offering discounts of up to 30% on knitwear and Per Una clothing last week and all clothing at the weekend, while stores from New Look to House of Fraser offered discounts of up to 50%.
However, Maureen Hinton at analysts Verdict Research said: "Shoppers will have been waiting until after Christmas because they know they can get even bigger discounts on items they want for themselves."
Those retailers that have really saved their discounts until after Christmas will see the most visitors. Tim Walley, general manager of the Bullring, says he expects about 2,000 bargain hunters to queue outsidefashion and homewares chain Next in the early hours of Boxing Day, with childrenswear its big draw.
Asda said it expected a busier than ever Boxing Day with 2 million customers coming through its doors and over a million hits online. It is hoping that deals on electrical goods will be a bigger draw than its Black Friday sales day earlier this month, when some shoppers were injured in the rush to bag cheap TVs and other electrical goods.
Meanwhile, Harrods will be tempting shoppers to its famous annual sale with hot drinks, food and a butler service for those queuing outside the Knightsbridge department store.
Harrods spokesperson Katharine Witty said: "We always raise the bar at every sale opening and this year we decided to do what we do best inside the store – only outside the store. Customers will therefore be treated to fantastic service, canapés and entertainment while they queue. We even have specially made blankets to keep out the chill."

Boxing Day bargains

Offers at Harrods
Alexander McQueen Heroine bag reduced from £2,195 to £1,310
J Brand skinny jeans reduced from £275 to £129
Emilio Pucci silk scarf reduced from £240 to £140
Currys and PC World
Zanussi ZWNB6140L washing machine down from £379.99 to £249.99
Rangemaster Kitchener cooker now £999 down from £1399
Samsung UE60F6300 60" Smart LED TV with Freeview HD for £999, saving £500
Asda
42" Panasonic TV – £279, was £329
VAX White label cyclonic cylinder vacuum cleaner – £40, was £54.96
Samsung Tablet 3, 7" – £139, was £159
Nicky Clarke frizz control dryer – £17, was £24.48

Labels to look for: fashion's best buys

Chosen by Imogen Fox
Womenswear
Saint Laurent shoes reduced from £765 to £535 at matchesfashion.com, on sale now
Buying something classic from a label at the top of the fashion hierarchy makes sense if you can afford it. Saint Laurent is both hip and classic, and a black and gold eveningwear sandal will not date for a decade. It's equivalent to 10 pairs from the high street.
Stella McCartney coat reduced from £1,940 to £970 at Stella McCartney.com, sale starts 27 December
A coat makes a brilliant sale buy as there is still plenty of cold weather to come. Plus it's the one item that people see you in first. For fashion points and female friendly fit, the Stella McCartney label is unequalled.
Dress from Whistles reduced from £165 now £80 at Whistles, sale now on
The upper end high street brand does the best dresses. This is less than half price, works for evening or day, and has an anonymous (but could potentially be designer) look about it.
Menswear
Shoes from Grenson reduced from £265 to £132.50 at mrporter.com, sale starts 30 December
Good shoes are what a man gets judged on first. If you are well shod you can pretty much wear anything. Black brogues are a useful classic but the extra chunky sole on these gives them a fashion update.
Suit at Reiss reduced from £395 to £275, sale now on
Stuff you need is less painful to buy in the sales. No one enjoys splashing out on something they need for their 9 to 5. If you need a new work suit Reiss in the sales is the place. Its suits have a fashion sensitive cut. Choose a simple pared back colour that isn't usually associated with the sale rail.

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