Christmas is cancelled? The effect on Gunwharf Quays during the cost of living crisis
CHRISTMAS is usually a time where shoppers spend and businesses thrive. However, there is a sense of anxiety about what the winter of 2022 will bring.
A cost of living crisis has swept the nation in 2022, leaving many fearful about even leaving the heating on this winter, let alone spending elsewhere on non-essential items.
A snapshot from Barclaycard recently revealed that 50% of consumers were planning to cut back on presents, food, drink and socialising this Christmas.
This comes as bad news for businesses, especially those that rely on the Christmas period as a crucial source of their annual income.
Gunwharf Quays outlet shopping centre in Portsmouth is no different, with the Christmas period being the centre’s biggest quarter of the year, as well as the period where they see their biggest sales.
‘I think we all know that the cost of living crisis will have an impact,’ Yvonne Clay, Centre Director at Gunwharf Quays, commented.
Yvonne continued: ‘We have to be very mindful of our guests and how, with increased energy bills, with a real squeeze around and with inflation running so high, the squeeze has to go on non-essential items, and as a retail outlet centre, a lot of what we sell is classed as non-essential.
‘That said, we offer incredible value, so what we can also see, in a time of recession, is that people want the same brands, by shopping in outlet they can get those same brands but at discounted price, so because of the fact we offer up to 60% off, that can actually be a real draw.’
Gunwharf is hosting a ‘Christmas Village’ in the shopping centre for the second year in a row.
The Christmas Village has a carousel, a big-wheel and alpine huts which sell a variety of items for people to look around and purchase for Christmas.
Yvonne believes the Christmas Village is important in attracting ‘the right sort of guests’, to the shopping centre.
She added: ‘It is quite popular and it’s another thing for people to look at and do while they’re at Gunwharf Quays, so that’s quite key for us.
‘I think the carousel is the key draw, so it really drives families down here, to have a little bit of a day out and the children to go on the carousel and the adults as well of course, and just take advantage of that and be drawn-in by the Christmas lights.
‘It just looks lovely.’
When asked for her message to encourage customers to Gunwharf despite the current crisis this Christmas, Yvonne said: ‘My message would be at the end of the day, we’re just here for people to walk around.
‘Take in the Marina, take in the gorgeous Christmas lights, have a walk around the Christmas village and take in the smells and the activity.
‘Enjoy yourself and feel Christmassy.’
Dr Robert Gausden, senior lecturer in Economics and Finance at the University of Portsmouth, has outlined consumer confidence as a major factor for possible reduced spending this winter.
He said: ‘Psychological factors do affect in the short run how much households spend.
‘Sadly, if you look at the data, consumer confidence is at an all-time low.
‘In the long run spending will be governed by your resources, your income and your wealth and if income and wealth are not thriving, then you can’t really sort of go against that.’
However, Dr Gausden, who has been working at the university since 2004, believes that ‘accumulated savings’ made during the Covid-19 lockdowns may benefit people today: ‘Income is falling substantially, because as you know, typically workers are not getting pay rises that correspond anywhere near to price inflation hence we’re seeing all of this industrial unrest we haven’t seen for several years
‘We’ve had a couple of years of lockdown you could call it, and people were not spending as much, they were not allowed to shop as much, and as a consequence households would’ve bolstered their savings and have a bit more in reserve than usual to purchase goods and services, so that is a factor.’
Mother of two, Claire, has said she has ‘reduced the amount of spending’ this Christmas, and the amount of people that she is buying presents for.
When asked if she felt under pressure as a mother, she said: ‘Yeah definitely I think it has actually, especially when you’ve got younger children and they’ve got really big expectations because of Father Christmas, and Father Christmas brings their friends all these things that you don’t want them to feel [that] he hasn’t brought them stuff.
‘So yeah definitely having a younger child makes things harder.’
One way Gunwharf can combat the cost of living crisis and attract customers this winter, is by offering further incentives to entice them to the outlet. This year, they have introduced free parking and longer opening hours on Thursdays and Fridays.
However, when asked whether this would benefit customers, Claire said: ‘I think [for] some customers yes, but for me personally no, because it tends to be [on] Thursday nights and that wouldn’t work for me because I have young children.
‘Personally for me, I’d find it more helpful to have it on a weekend.
‘But I see why they’ve done it and I applaud them for trying to help out the shoppers.’
Claire is often a Gunwharf regular, however, due to the current cost of living crisis, she will have to cut back, especially on socialising with friends: ‘I love Gunwharf, I love the Christmas market, I love the lights and the tree and the decorations, so I think it has a real Christmas feel to it.
‘Since money has become tighter for all of us, we only really do it now for special occasions.
When asked if she will remain shopping at Gunwharf during the festive period, Claire said: ‘I will be but I won’t be spending as much as I normally do!’
