Farewell January Sales

We’re going to have to think of a new name for the January Sales. This year more than ever, Clearance activity has been pulled forward into the period between Boxing Day and New Year - indeed online it started even earlier - and because most retailers have managed their stocks well, it means that in many cases there won’t be much left of the Sales by next week.

The VAT increase on New Year’s Day will obviously have pulled forward some purchases but nevertheless there is a wider trend going on here. I spoke to the chief executive of one fashion-led retailer yesterday - ie one where VAT won’t have made much difference - and he said his business would be out of clearance and trading full price again by Thursday. That might be the exception but nevertheless it suggests that the traditional quiet period of February might now extend to cover most of January too.

That’s going to create a dilemma for shopping centres particularly as they try to maintain footfall levels during the first two months of the year. From what we can tell the freezing weather has played into the hands of the big malls both pre-Christmas and in the Sales, because despite the disruption the bad weather caused, if they can get out in their cars, people would rather keep warm indoors.

The challenge now is going to be to keep shoppers interested and coming out during the cold months ahead and as the credit card statements start landing. And this is where retail property owners can really make a difference with imaginative marketing campaigns and activities which really drive footfall. It’s a long, cold couple of months ahead, but this is where working together can genuinely make a difference.