However, retail sales rose faster than expected in November, with deep and prolonged Black Friday discounts said to be the main factor.
Some UK retailers reported an 8% increase in foot traffic over the Black Friday weekend compared to the previous week, with overall Black Friday sales up 4.1% year-on-year to £1.04 billion. Ta.
Meanwhile, performance in December was less strong as growth was below the 2023 average and sales volumes fell by 3.2%, the biggest drop since the UK went into lockdown. Extended discounts and promotions across all areas in November contributed to lower spending in December, as consumers took advantage of the biggest discounts since the Black Friday and Cyber Monday weekends.
ILG numbers will peak in 2023
Looking back at ILG’s performance during the peak period of 2023, we found that many of our customers experienced growth well above the average growth seen across the UK. In summary, November and December 2023 were the most successful peak trading period to date, with order volumes increasing by 19% year over year, and orders increasing by 25% over the Black Friday/Cyber Monday weekend. did. 2022.
Visit our Peak Hub for tips and advice on how to prepare your business for the next peak.
How did the beauty industry achieve this peak?
As beauty fulfillment specialists for many years, we know that the beauty industry continues to grow, with Barclays reporting a 3.8% year-on-year increase in pharmacy, health and beauty spending in December 2023. I’m glad to be here. Despite 59% of consumers saying they actively seek out deals and discounts, the beauty industry is still seeing some growth compared to before due to the rising cost of living.
Paul Martin, head of UK retail at KPMG, said: “Christmas shoppers are ditching clothing, jewelery and technology gifts in favor of beauty, health and personal care products, which will grow alongside food and drink this year. “It boosted Christmas sales.” The beauty industry appears to be bucking the trend as people spend less on clothing, eating out, electronics and sporting goods.
Is beauty really recession-proof?
So why is beauty shopping less likely to squeeze consumers’ purchasing power than it was at its peak in 2023? It’s clear that beauty remains a popular choice for gift-giving. Helen Dickinson, Chief Executive Officer of the British Retail Federation, said about beauty gifts:was an outstanding performerWhen it’s Christmas sale. The majority of ILG’s customers are in the beauty and wellness industry, which is reflected in their strong performance.
As we’ve seen during the pandemic, products that make you feel good and look good continue to resonate with consumers, even when times are tough and budgets are limited. For example, in the weeks following lockdown, fragrance company Diptyque saw a 536% increase in candle sales, while Selfridges reported that beauty was its strongest category. The theory, coined the “lipstick effect,” suggests that despite tough economic times, consumers still buy luxury goods while choosing lower-priced items like lipstick.
Will beauty survive the recession? Evidence shows that the beauty industry holds up relatively well during economic downturns. Is it a shift in mindset that for many people, looking and feeling good is a necessity rather than a luxury? Rather than spending hundreds of dollars to feel good at a spa, for example, consumers are buying new beauty products. Can you get the same energizing feeling from? Are beauty consumers the most loyal consumers?
While all of these are contributing factors, it’s unclear exactly why beauty product sales continue to hold up under today’s economic pressures. What we do know is that come the 2023 peak season, many of ILG’s customers will hit the ground running and achieve healthier order volumes than ever before. Stay tuned for future blogs as we look behind the numbers to see if the 2023 peak really lives up to expectations.
