It was announced at the end of October that the first Christmas adverts were being aired the earliest time in history, giving shoppers a full two months to prepare for the festivities, and possibly creating another major end-of-year spend, much like the unexpected surge in the run up to Christmas 2010. But with a Christmas coming too early in what is still an unstable economic climate, will we see only moderate spending instead of last year's surge? And are many likely to shun the commercial demands by not filling the stockings until December arrives?
The Christmas Fairytale
The idea of preparing for Christmas before Bonfire Night is not something the majority of people are willing to accept. With mince pies and tinsel being shoved down our throats before the first frost, the early start could have a negative effect, as people will refuse to start their shop until advent approaches. This coupled with the boom in online spending could mean that retailers lose out on extra revenue gained by consumers buying within their shops. More than 40% of people are expected to shop online for at least some of their gifts this Christmas.
Christmas of the 2000s has taken on a new personality, with Christmas shoppers fresh out of their shorts and sunglasses, able to put a pumpkin under their arm as they pick out their turkey, but nevertheless it seems most want to shun the idea of festivities until December comes around. Spare a thought for those employees at Harrods who were unveiling their Christmas decorations back in July. Without a doubt, Christmas is fast becoming an all year plan.
Christmas and the Economy
RBS has reported that retail sales generally increase by 30-40% in December alone, affecting the rest of the financial year for most stores. With the lead up to the festivities starting much earlier, we may be more likely to see a more prolonged period of spending rather than a sudden increase. This could also affect the amount that is spent overall, as with an unstable climate still hanging over us people are not as likely to splash out – especially after last year's reasonably high spend in the run up to Christmas, considering the economic climate and the factor of snow affecting many around the UK.
With figures from the Office for National Statistics (ONS) mid-way through 2011 showing that consumer spending had held back the economy more than expected, last year's figures cannot be expected to be eclipsed this December. With that in mind, retailers have attempted to reach out to consumers earlier this year in hope of recovering some of the losses made over the previous months, and now a full two months is dedicated to the Christmas period. The only factor that could possibly affect them is that consumers consciously choose to spend less due to economic uncertainties and the onset of spending more in 2010.
What Should We Expect For 2011?
With the economy still in an uncertain state, many are unlikely to buy into the early start of Christmas. Maybe the spirit of Christmas may start a little earlier, but for many the pinch of the purse may not allow a high spend. It's likely we will see Christmas shoppers turning to the Internet for cheap alternatives and a high rise in early December sales, as for many, Christmas is unlikely to begin six weeks premature. Christmas may come too early for many this year. Maybe give us another 12 months, yeah?
Matthew Smith - Graduating from the University of Lincoln in 2008, majoring in Journalism, minoring in Politics, Matthew Smith writes passionately about ...
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