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Weathering
Industry Issue: Cost Of Living Crisis
The Storm With inflation currently at 9.1% (at the time of going to press), five consecutive interest rate rises pushing up mortgage repayments, average energy bills estimated to rise to £3,000, food bills sky rocketing and petrol heading for £2 a litre, the cost of living crisis is intensifying. With consumers already tightening their belts and making changes to their shopping habits, what will it mean for the gift industry in the coming months? PG&H asked suppliers and retailers for their views.
Quality, Choice, Value For Money “The cost of living crisis is certainly of real concern to many of us in the gift and lifestyle sector,” says Chris Lewis, head of independent sales, Gallery Direct. “The more people feel they are affected by inflation, as household budgets are squeezed, the less we know they will spend, That said, there are still plenty that fall into the camp of having disposable savings and wanting to spend it on home improvements or gifts for their loved ones. We are therefore optimistic that, with the right design-led products, there will be a strong market.” Will the gift sector be able to weather the storm? “Yes, we believe that the gift sector will be resilient. As always, it is about quality, choice and value for money, so it’s important that we all focus on delivering to satisfy these fundamental client needs.” Consumer buying patterns: “This year, less will be more. There will be demand for high quality products at the very best prices, so we all need to work hard in our Autumn buying cycles to find value within the marketplace.” Top retailer tips: “Cut costs where you can but remember to put your customers at the heart of all you do. It often doesn’t cost anything to ‘go that extra mile’ with your customer service and your own creative advice. Find ways to excite and interest and, most important of all, keep positive and stay optimistic.”
Creative Buying “I think we’ll all be heading for a tough six months,” predicts Adam de Wolff, director of The Indigo Tree, which has stores in Crystal Palace and Streatham. “As the financial landscape adapts to global pressures, customers will be more cautious with their spending and the need to focus on sourcing quality and affordable products.” Will gift retailers be able to weather the storm? “Despite the pressures on customers’ wallets, they will still have occasions to celebrate, so if we are smart with our buying and pricing we should weather the storm, but we have to buy creatively.” Will you be buying differently? “We are anticipating that customers will have much tighter budgets, possibly buying for fewer people this Christmas, and we have ordered more cautiously as a result. We are hoping that if spending habits are not massively impacted we will be able to place top-up orders at the Autumn trade shows.” Above: The Indigo Tree in Crystal Palace.
Above: Chris Lewis, head of independent sales, Gallery Direct.
Progressive Gifts & Home Worldwide
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