A ‘tight’ Christmas for consumers doesn’t mean that shoppers will completely go without so retailers need to be ready with the right seasonal confectionery
1. Ninety per cent of consumers buy confectionery for Christmas
2. Last year a quarter of shoppers started their Christmas shopping in September or earlier
3. The advent category is growing 21% year on year
4. Seasonal boxes drove volume growth of 8.8% last Christmas
5. It will be a ‘very tight Christmas’ for many
6. Christmas chocolate makes a smart ‘trade down’ gift in a tough year
7. Retailers should show some Christmas spirit to grow sales
1. Ninety per cent of consumers buy confectionery for Christmas
(Nielsen)
After another wildly unpredictable year, retailers are looking forward to one thing that always seems to stay consistent: Christmas confectionery sales.
“With nine in ten consumers buying confectionery for Christmas, it is a key occasion for convenience retailers to drive sales,” explains a Mars Wrigley spokesperson.
They say that for Christmas 2021 the post-Covid climate helped drive sales as loved ones re-connected over some nice chocs. This year promises to be equally social (in theory) and Falkirk retailer Anand Cheema expects Christmas confectionery to be a winner for 2022 too. “I think Christmas confectionery sales this year will be good as there’s lots of momentum already and Halloween sets the pace,” he says. “Obviously in 2021 we’ve seen lots of big changes, from the Queen passing away to the energy crisis. So I think that people will want a joyful Christmas after another hard year.”
2. Last year a quarter of shoppers started their Christmas shopping in September or earlier
[Mintel 2021]
In 2021 Xmas shoppers’ worries about seasonal out-of-stocks meant they were hunting down Christmas treats earlier than ever. Supply chains might have improved this year (fingers crossed) but the instinct to buy early remains.
“We like to have Christmas confectionery out early – ideally straight after Halloween – because it puts the occasion firmly in the consumers’ minds,” says Anand. “That way they know you’ve got the likes of advent calendars and whatnot. Also, players like B&M and the main supermarkets have their Christmas confectionery out early – so you’ve got to compete with them. Then if the supermarkets run out of something customers know they can come to you.”
Andy Mutton, managing director at Storck UK recommends beginning early and then ramping up stocks as the big day approaches. “Christmas is always a busy season so it’s important that retailers start stocking up early,” he says. “When it comes to boxed chocolates for example, we recommend having these in stock from October until Christmas to entice shoppers to purchase earlier in the season. Secondary siting of boxed chocolates will also drive shoppers to impulse purchase in the weeks leading up to Christmas, increasing their basket spend.”
As Susan Nash, trade communications manager at Mondelēz International explains, the countdown to Christmas can be great for impulse sales. “In the run-up to Christmas, offer shoppers the opportunity to trade up by stocking gifting items with low priced impulse items,” she says.
“Stock new products to build excitement in-store, and be sure to highlight this range in-store and on social media!
Fitting the bill for 2022 is the Cadbury Mini Snow Balls Bar (110g, rrp £1.49), giving popular Mini Snow Balls the full bar treatment on-shelf.
3. The advent category is growing 21% year on year
(Nielsen)
Advent calendars are one item that people need to grab before the December 1 cut-off. And as well as being impulse-friendly, they’re popular too, with one in four households using chocolate to count down the days (ibid).
“By November, the countdown to Christmas has truly begun,” says Nash. “Shoppers will start to begin preparations for the festive season with the purchase of advent calendars and tree decorations.” This year, Mondelēz International has brought consumers a Christmas challenge in the form of Cadbury Dairy Milk Advent Bar, which features 25 individually-numbered chunks in a resealable wrap.
4. Seasonal boxes drove volume growth of 8.8% last Christmas
(IRI)
A seasonal pack may be sales death after December 26. But in the lead up to Xmas they add obvious shelf appeal.
In terms of packaging, seasonal boxes are important at Christmas, driving strong volume growth of 8.8% [IRI], says Mutton. “As shoppers trade up to bigger sharing packs during the festive season, products like our larger Toffifee pack sizes help to drive sales particularly in the three weeks before Christmas when these products are in high demand.
“Festive designs are also very popular this time of year and help retailers to guarantee high in-store impact and shopper attention,” he says.
Swizzles claims that its Sweet Shop Favourites Tub, which saw a 171% uplift last Christmas (IRI).
5. It will be a ‘very tight Christmas’ for many
(TWC)
With over 53% of shoppers having to reduce spending to pay their bills some shoppers face a very tight Christmas (TWC). Of course, many people will splurge and deal with the credit card bill in January. And for everyone else, c-store retailers can offer support by stocking a wide range of price points.
“I think it’s important to show value across the category and include products at a range of price points,” says Anand. “Having said that, I’m not sure we’re going to sell as many premium products as last year.”
This is where cheaper choices can come into their own – like sweets.
“With the cost-of-living crisis having a negative impact on people’s budgets, many households are forced to cut back on spending this Christmas,” says Chris Smith, marketing communications manager at Hancock’s.
“Consumers are likely to be on the lookout for best deals and are willing to go the extra mile and get certain things from independent retailers if they’ve spotted a good deal, instead of insisting on doing their whole Christmas shop at a supermarket for convenience.”
Despite the chilly economic winds Hancock’s highlight that there’s plenty of festive fun to be had. Chief among its range is Bonds of London share bags, with new additions Christmas Fudge (140g, rrp £1), Chocolate Oranges (110g, rrp £1) and Reindeer Jellies (120g, rrp £1).
6. Christmas chocolate makes a smart ‘trade down’ gift in a tough year
As December rolls around, many shoppers will be buying treats for their family or the office. Plus, there’s also a Santa-sized opportunity for retailers to win with gifting confectionery.
“Gifting remains the biggest shopper ritual of the festive period. Consumers will be looking for value for their favourite brands gifting portfolios but not be willing to compromise on quality,” says a Mars Wrigley spokesperson.
The firm says that the popular Maltesers boxed range brings in 1.2m unique households into the everyday boxes category, making it the second largest everyday boxed brand at Christmas.
In a thriftier year than usual, Nielsen IQ points out that Christmas chocolate makes a smart ‘trade down’ gifting choice. After all, a nice box of chocs can be a cheaper alternative to wine or perfume.
To get in on the gifting act, premium chocolate brand Lily O’ Briens has launched new Milk Chocolate Truffles (rrp £5), presented in upscale packaging.
Karen Crawford, marketing director at Lily O’Brien’s says that the launch is set to add over £2m to the Casual Gifting Market in 2022 alone. “Moments of chocolate indulgence and most notably premium gifting at this time of year will remain highly sought after,” she says.
7. Retailers should show some Christmas spirit to grow sales
“Seasonal events are the perfect time to create and produce displays that promote your Christmas offering in an exciting way,” says Mark Walker – sales director at Swizzels.
“At the start of November, retailers should create a Christmas themed display in a high footfall area, like an aisle end or front of store, to take advantage of the countdown to Christmas. “
Bobby Singh, from BB Nevison Superstore and Post Office in Pontefract, West Yorkshire believes that it’s definitely worth pushing the sled out. “Occasions like these aren’t necessarily about sales, it’s about bringing together the local community,” he says. “Going big on Christmas is important, it gives people a chance to celebrate which we all really need at the moment.”
Anand agrees that the right in-store theatre boosts spirits and lifts Christmas confectionery sales. “I always think that the smaller convenience stores don’t go as big as they should on Christmas,” he says. “I’ve always believed that if you create that theatre in store, you’ll get more of a sales uplift during the season. So, if you can really play on that, it makes a difference.”
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