Christmas is only a couple of days away! If you are an online retail owner, it looks like it is going to be a very Merry Christmas for you as online sales are expected to reach £805 million on Christmas Day. Looks like a lot of people are going to be spending their Christmas money straight away! The sales on Christmas Day will grow by 10.1% from 2015. This shows that a larger percentage of the population will choose to shop on Christmas Day today. This proves that online shopping is becoming very popular with consumers. As a business owner, it will be crucial for you to understand that Christmas Day is becoming a significant event in the online shopping calendar. The increase in sales is due to many people receiving gift cards which they will be able to redeem as soon as they receive them. This has led to many online retailers offering deals exclusively for Christmas Day so that they can boost their sales during the festive season. Do you offer promotions on Christmas Day?
Black Friday was a monumental day in 2016 for online retailers with many records being broken. Due to the heavy discounts, which a majority of retailers offered, the overall average basket value decreased. The electrical sector was affected the most by the heavy discounts as the average basket value dropped by 18.5% on the previous month and 22.7% on November in 2015. However, the significant number of discounts helped the online retail sector in November as the number of online shoppers increased by 22.9%. This figure was helped majorly by Black Friday and Cyber Monday. The Christmas spirit influenced the rise of online shoppers as the sales of gifts increased by 47.2% and clothing was up by 24%. Do you have a mobile site? Sales on smartphones show no signs of slowing down as sales grew by a massive 89.2 percent. If you do not have an E-commerce website, this is the time to invest into one as customers are beginning to choose online retailers over the high street.
Are you situated in the West End? If you are, Super Saturday is going to be a very hectic day for you as last-minute shoppers are expected to flood the iconic high street in search of Christmas gifts. On Super Saturday, it is expected for 900,000 visitors to descend on the West End with over £50 million spent. This is encouraging news for high street retailers as it shows that customers still want to visit physical stores despite the increasing popularity of online retailers. During November, the West End enjoyed a 13.9% increase in sales and a 2% increase in footfall. This shows that high street retailers continue to be the preferred method of shopping for consumers. Are you prepared for Super Saturday?
Does your restaurant offer a set menu? Recent reports state that 90% of the UK public will choose products from a set menu if a set menu is offered to them. This shows that offering a set menu will enable your restaurant to lure in a higher traffic of customers as the public will prefer products on a set menu. It is recommended that you introduce a set menu in your restaurant because if you do not offer a set menu, you will limit your sales and customers as your customers will choose to eat at a restaurant who will provide them with a set menu. 81% of restaurants offer a set menu which shows that if you do not offer a set menu, you will struggle to remain competitive. Does your restaurant offer promotions? As a restaurateur, it is crucial to provide your customers with promotions which will keep them coming back to your restaurant. If you didn’t provide your customers with promotions, you would struggle to gain sales. This is because 27% of British people only eat at places which offer promotions. It is recommended to provide your customers with regular promotions as 69% of the population use promotional offers when eating out. This shows that offering promotions has the potential to significantly boost the sales of your restaurant.
The demand for restaurants is dramatically increasing in the UK with the number of restaurants increasing by 13.5% to 45,160 in the last 5 years. However, the same cannot be said for pubs and bars as the number of establishments serving drink has decreased by 12.4% to 66,038 during the last 5 years. However, casual dining is the trend that has taken the UK by storm with the number of casual dining establishments dramatically rising. The casual dining market has significantly expanded with brands such as Wahaca becoming established in the restaurant industry. Does your restaurant offer a casual dining experience?
2016 has been a tough year for the hospitality industry as hospitality businesses have been faced with a wide range of challenges. The introduction of the National Living Wage seriously impacted the profit margins of hospitality establishments as many businesses had to increase the wages of their employees. By 2020, the National Living Wage is expected to rise to £9 which will cost the hospitality sector £13.2 million. During 2016, there was an increase in demand for vegan and vegetarian options in restaurants which has caused many restaurants to have to change their menus and offer vegan and vegetarian options. Many hospitality businesses have seen their costs dramatically increase due to the rising rent costs. The rising rent costs has caused many restaurants to close and it is expected for many more restaurants to close due to rent potentially increasing by 50%. One of the biggest problems of 2016 was Brexit which affected many aspects of the hospitality industry. Due to Britain leaving the EU, the number of tourists has dramatically decreased which has caused the sales of many hospitality businesses to fall. The changes in law has also caused many implications which has affected the prices of food and the eligibility of the employees of the hospitality industry.
We wish you a Merry Christmas from all of the WOWPOS team!