The significance of Christmas to retailers’ bottom lines means that updates on trading during this time are always closely watched. This year, the cost of living crisis has weighed heavily on shops. As well as inflation (especially in food), energy, pay and other cost pressures on retailers, transport and postal strikes and the ongoing impact of Brexit also caused concern in the run-up to Christmas 2022 that the retail losers would far outweigh the winners.
But results – particularly among clothing and some non-food categories – have pointed to a more positive picture than anticipated before the festive period. British retail giant Next produced a downgraded estimate of annual profits last autumn, but its Christmas trading update points to strong sales – and in its stores more than on online. Budget store B&M also reported excellent Christmas trading figures as did retailers as diverse as Boots, Greggs, The Fragrance Shop, Card Factory, Seasalt and Oxfam.
