Easter retail sales are set to fall for a second year running as continued restrictions on social gatherings “impact shopper’s enthusiasm” for gifts and meals.
According to new data and analytics company GlobalData, nearly 60 per cent of respondents said they had already or intended to purchase something for Easter this year, representing a 7.6 per cent decline on last Easter.
Only around 40 per cent of those surveyed said they planned to purchase an Easter gift this year, dropping from 53.5 per cent last year and potentially leading to a 25 per cent drop in sales.
GlobalData’s retail analyst Zoe Mills warned that the drop in spending will be of “great concern for retailers” hoping for some respite as they get poised to reopen.
“With fewer consumers intending to spend this Easter, retailers must appeal to those still investing in this event, encouraging consumers to spend on more premium and indulgent Easter eggs as a treat after a difficult year.
“Hotel Chocolat has a strong track record when it comes to tempting shoppers to trade up. The retailer prospered in the 2020 festive period, reporting 19 per cent total revenue growth for the 13 weeks ending 27 December 2020.”
Though the overall number of customers purchasing food and drink for an Easter meal is set to drop by 3.8 per cent, the newly relaxed lockdown restrictions will mean customers focus on purchasing food for outdoors settings.
“The ability to meet outdoors for Easter provides some flexibility for families to see each other over this occasion,” Mills added.
“Good weather permitting – indeed the UK reported a record-breaking sunny spring in 2020 – the grocers should target Easter food and drink ranges for outdoor celebrations.”