Sunny, with occasional showers

Retail Barometer
Barometer: The Results
Sunny, with occasional showers
Well that seems to be the majority verdict of the independent
party retailers who replied to the questionnaire which was sent
out with the November issue of Progressive Party. Although
2010 was a tempestuous year in many ways, it appears that the
party trade has managed to sidestep much of the doom, gloom
and drama and is even managing a glimmer of optimism. That’s
the spirit! Progressive Party reveals the results of this, the first
ever survey into the health of the independent party trade.
40%
So how’s business?
Bearing in mind the difficulties that have been faced over the last 12
months by the UK retail market as a whole, it is encouraging to report
that around two-thirds of the respondents to Progressive Party’s first
retail barometer reported that their business is at least on a par with
last year, some (40%) even showing signs of growth. A similar number,
however (36%), reported a decline in their sales figures in the same
period, making it safe to say that the 2010 has been somewhat contrary,
with both high and low points. As the rest of the barometer results
show, some areas of the party trade have shown real growth (the old
favourites like balloons have been particularly popular) while others have
been disappointing (Halloween didn’t quite manage to match up to the
record-breaking year it had in 2009). What is particularly striking is that
any decrease in business or spend hasn’t dented the party retailers
positive attitude, with many respondents still reporting their plans for
diversification and taking positive steps such as training courses.
15%
How has business been
for you, 2010 vs 2009?
17%
■ Significant growth
■ Marginal growth
21%
23%
■ Remained the same
■ Slight decline
■ Major decline
23%
On a scale of 1 to 10 where do
you think the UK rates as a
‘party nation’?
■ 4 out of 10
■ 5 out of 10
■ 6 out of 10
20%
■ 7 out of 10
13%
13%
■ 8 out of 10
■ 9 out of 10
7%
7%
1%
■ 10 out of 10
Can’t get the staff
Grumpy billionaire Lord Alan
Sugar and Mary Portas - selfappointed Queen of Shops - are
the two people most respondents
would like to work alongside
for the weekend. Very sensible,
although quite how good they’d be
at advising customers on which
fancy dress costume to choose is
unclear. It’s a fairly safe bet that
Respondents would most like to
they’d be better than some of the
work alongside Lord Alan Sugar
other names who crop up in the
top ten though - Johnny Depp and Cheryl Cole may have been chosen
for reasons other than their extensive retail or business experience…
What famous person would you like to work in your shop
with you for a weekend?
Overall, results show that the UK
party market is in good health
A nation of party animals?
We’re constantly being told by the mainstream media that the UK has a
reputation for being a nation of partiers - but being famed for falling
out of pubs isn’t the best way to judge the party market. So we asked
independent party retailers to score the UK as a ‘party nation’. The
results were positive - only 20% rated it as a 5 or below, with the most
respondents (40%) scoring it 7 out of 10.
Male
Female
1 Lord Alan Sugar
1 Mary Portas
2 = Robbie Williams
2 = Lady Gaga
3 = Elvis
2 = Dawn French
3 = Johnny Depp
4 = Cheryl Cole
5 = Theo Paphitus
4 = Miranda Hart
5 = Peter Andre
6 Marilyn Monroe
7 = David Beckham
7 = Kate Middleton
8 Michael Buble
7 = Kirsty Allsop
9 Tommy Cooper
9 Lorraine Kelly
10 Groucho Marx
10 Kelly Brook
DECEMBER 2010/JANUARY 2011 PROGRESSIVE PARTY
23
Service with a smile
As suppliers and wholesalers continue to work on improving their
service with an unprecedented number moving online and boasting of
24/7 ordering systems, up-to-date stocks records and drop-shipping
capability, Progressive Party asked whether this had any affect on
service levels. The answer was a resounding no, with only 27% of
respondents believing that the service they received has actually
improved.
The loss of Woolworths made
little difference to trade
The Woolies affect
Much was made of the demise of high street stalwart Woolworths, with
pundits and commentators predicting that independent retailers would
pick up much of the Woolies trade. It would appear that was simply
wishful thinking, as 86% of respondents to this question reported that
their business had remained unaffected by the loss of the store.
In the last year service levels from suppliers have:
Improved significantly
6%
Improved slightly
21%
Remained the same
43%
Decreased slightly
25%
Decreased significantly
5%
What effect has the demise of Woolworths had on your business?
Marginal growth
10%
Remained the same
86%
4%
Slight decline
Discount traders
As the party trade in the UK continues to grow, supermarkets and
discount stores are leaping on the balloon-covered wagon left, right and
centre. This is taking its toll on most party independents to one degree
or another, with 79% admitting their business had been affected.
Have the supermarkets and
discount stores affected your
trade throughout 2010?
21%
■ Major effect
34%
■ Moderate effect
In-store face painting
can draw the crowds.
■ No effect
Do come in!
45%
Not-so-big spenders
At first glance the fact that most respondents (45%) found that their
customers were spending less than they were in 2009 looks like
bad news - but a third found that it hadn’t changed at all, despite
belts being tightened across the country. In fact, a further quarter of
respondents found that the average spend had increased. Considering
the current retail situation across the UK, it’s an encouraging result.
24%
24
What promotions have you run in-store this year?
Local PR/advertising
51%
Leaflets
42%
How did the average consumer
Enhanced window displays
40%
spend in 2010 compare to 2009?
Multiple purchase discounts
26%
■ Increased
In-store events
14%
■ Decreased
Other
8%
■ About the same
BOGOF offers
6%
45%
31%
It would seem the tried-and-tested methods of drawing in the
crowds are still the favourite, as more than half of respondents
have advertised in their local press. Enhancing window displays - a
promotional activity which costs very little other than time - has
also scored highly, with 40% of respondents attempting to catch
the attention of Joe Public as he strolls past. In-store events seem
to be increasing in popularity - bringing with them both footfall
and valuable free publicity - so it will be interesting to see if this
promotional activity moves up a few places in next years survey.
PROGRESSIVE PARTY DECEMBER 2010 / JANUARY 2011
Retail Barometer
Barometer: The Results
An industry under threat?
Exactly how much of a threat the party industry is under is debatable,
but it’s pretty clear that 2011 will be an interesting year for independent
retailers. The ever-increasing numbers of discount stores cropping up
on our high streets are considered to be the biggest threat, although
the perilous state of the UK economy comes in a close second.
What do you see as the
major threat to the UK party
industry in the next year?
6%
17%
28%
■ UK economy
■ VAT increase
■ Expansion of multiples
and discount stores
29%
20%
■ Product price increase
■ Other
Greetings cards are a popular
diversification choice, like this card
from Aliroo’s Jungle Buddies range
Looking up
The rise in internet shopping
is having an adverse affect
on party retailers.
Irritants and annoyances
If retailers want to remain ahead of the game then they need to take
positive action! Expanding into other product areas and promotional
activity were the top two most important factors in increasing trade
over the past year. Great news for those retailers looking to try
something different, not such great news for those who have been
planning an expensive renovation - that came in bottom.
What factors have had a positive effect on your business this year?
1 - Expansion into other product areas
2 - Promotional activity
It’s that pesky economy again, overshadowing everything else as
the main thorn in the party retailers proverbial side. Hot on its heels
though, comes competition from a whole host of places, including
the internet, supermarkets and discount stores. Parking and rent
concerns are relatively low down the list, while the minimum wage
increase is ruffling few feathers.
3 - Home partying
What factors have had a negative effect on your business this year?
8 - Shop refit/improvements
4 - Supplier/stock
5 - Staff
6 - Other (including internet and new ventures)
7 - TV or film influences
1 UK economy
2 Internet competition
Growth of the industry
3 Expansion of party products into supermarkets
4 Expansion of party products into discount stores
5 Increased local competition
6 Supplier issues
7 Parking issues
8 Increase in rent/rates costs
It might just be the unshakeably sunny disposition of party retailers,
but the responses to our questions about the growth of the industry
were overwhelmingly positive. While just over half of respondents
believed the industry had grown in last three years, almost the same
amount expected the next three to be equally fruitful.
9 Other (including decline of high street, Ebay)
Has the party industry has grown over the last three years?
10 Minimum wage increase
Yes
52%
No
21%
Not sure
27%
George Osborne, Chancellor
of the Exchequer, unveiled
his emergency budget - with
VAT increase - on June 22nd.
And will the party industry grow over the coming three years?
Yes
50%
No
14%
Not sure
36%
DECEMBER 2010/JANUARY 2011 PROGRESSIVE PARTY
25
Retail Barometer
Barometer: The Results
Adult costumes
Top of the party pops
1 = Jack Sparrow
It comes as no real surprise that balloons are the best selling product
for party retailers, quickly followed by costumes and partyware. It is
interesting, though, that gifts, cards and linen hire feature so highly
in the list, above long-term industry favourites such as masks and
jokes. This surprising result goes some way towards proving that
diversification really is key to running a successful party retail business
- the one-stop-shop is a
What has been your biggest selling
product area over the past year?
1
Balloons
2
Costumes
1 = Pirate
Gratuitous shot of Captain Jack Sparrow,
the inspiration behind 2010’s top-selling
adult pirate costumes
3
Cheryl Cole
4
‘Pink Ladies’ jacket
5 = ABBA and 70s
5 = Sesame Street - Big Bird
Kids costumes
1
Victorian
2 = Fairy
2 = Ben 10
3 = Partyware
4
3 = Props and accessories
Charlie Crow (robin and tabards)
5 = Christmas
5
Gifts
6
Cards
7
Linen hire
8
Toys
Display props
Masks
1
DVD player/digital photo frame for display
10 = T-shirts
2
Giant champagne bottle
10 = Jokes and novelties
3
Balloon arch
4
Wigs
9
10 = Helium gas
10 = Hen and stag accessories
5 = Tudor
Balloons have
performed well
in 2010
Partywares
1 = Table confetti
I need a hero!
1 = Foil garlands
There are a few key products that each and every party shop knows it
needs to keep in stock if it’s not going to become the laughing stock of
the industry. The basics include plain balloons, large foil numbers
and - of course - the Jack Sparrow and generic pirate costumes made
hugely popular by the Pirates of the Caribbean films (the fourth in the
franchise is coming out later this year and the official licence is held
by Rubie’s). Surprising results include table confetti - proving the
importance of add-ons - and DVD players and digital photo frames being
used for displays more than balloon arches.
3
Hello Kitty disposables
4 = Blue Nose Friend
4 = Ben 10
Sky Lanterns are a new addition to
the UK party trade and have already
been named a hero product.
Others
1
Large feather centrepieces
2 = Partybag fillers
2 = Bubbles
5 = Sky Lanterns
Latex balloons
1 = Qualatex 11”
1 = Qualatex 12”
3 Birthday ages
4 Cream/Ivory for weddings
5 Qualatex ‘Double Bubbles’
5 = Conwins foils valve
Extending your reach
Large numbers are the best-performing foil balloons
The last few years have seen retailers expanding into areas outside their
basic product base and the party trade is no different. Balloons took
the top spot and are the most logical extensions if a party shop does not
already carry a large range, but extending an offering to include cards
and gifts will give most retailers a whole new string to their bow.
Which product areas would you consider diversifying into?
Foil balloons
1 Large numbers
2 Milestone birthdays
3 ‘Happy Birthday’
4 Qualatex ‘Bubbles’
5
Plain foils for printing
Balloons
33%
Gifts
22%
Costumes
21%
Other
13%
Greetings cards
12%
London 2012 merchandise
10%
Party invites/stationery
7%
Toys and games
9%
DECEMBER 2010/JANUARY 2011 PROGRESSIVE PARTY
27
Retail Barometer
Barometer: The Results
All change!
Balloon time
There was no obvious trend which jumped out from the results when
Progressive Party asked which occasions or areas had seen an increase
or decrease over the last 12 months, indicating that while there is of
course some movement up and down, the divisions within the party
market have remained fairly steady year-on-year. Halloween was
a disappointment to almost half of respondents after the recordbreaking year it had in 2009, but balloons are proving popular, both as
individual purchases and as private design and decor work.
It would appear that the consumer has finally cottoned onto the fact that
there are alternatives to the expensive bouquets of flowers which are
traditionally given to the object of your affections, with Valentine’s Day
taking the top spot as the occasion which has seen the biggest increase
in balloon business. New Year and Christmas balloons have also done
well in the chart, presumably more to be used as venue decor for pubs,
clubs and restaurants. It’s interesting to see that sales of birthday
balloons have increased more than many of the other categories - a
direct result of the increase in home partying perhaps?
Which areas have generally increased or decreased for you this year:
Occasions:
Halloween:
Increased
Decreased
Remained the same
New Year:
Increased
Decreased
Remained the same
Christmas:
Increased
Decreased
Remained the same
Hen and Stag:
Increased
Decreased
Remained the same
Which occasions have seen the biggest increase in balloon business
for you over the last 12 months?
20%
46%
33%
18%
23%
59%
21%
30%
49%
23%
16%
61%
Other occasions:
Increased
Decreased
51%
15%
Remained the same
34%
Areas:
Kid’s costumes:
Increased
Decreased
Remained the same
27%
24%
49%
Adult costumes:
Increased
Decreased
Remained the same
22%
25%
53%
Sexy costumes:
Increased
Decreased
Remained the same
17%
25%
58%
Balloon purchases:
Increased
Decreased
Remained the same
58%
21%
21%
Private balloon work:
Increased
Decreased
Remained the same
42%
22%
37%
Gas hire:
Increased
Decreased
Remained the same
34%
16%
50%
1
Valentine’s Day
2
New Year
3
Christmas
4
Birthdays
5
Halloween
6
Wedding
7
Mother’s Day
8
Births/christenings
9
Birthday parties
10
Anniversaries
11
St Patrick’s Day
12
In Memoriam
Birthday balloons - like this one from Pioneer - have
increased in popularity thanks to the rise in house parties.
In terms of balloons, what is your split in sales between:
24%
Licensed
14%
Gas
rental
42%
Foil
76%
Generic
58%
Latex
86%
Commissioned jobs
Dressed to kill
The rise in Halloween costume business continued into 2010, with
respondents seeing the biggest increase in this category. The big
surprise perhaps came from the increase in using dress-up as part of
adult birthday celebrations - although the recent rise in 1980s-themes
costumes and neon colours should have been a hint, as those
celebrating their 40th birthdays now were inevitably children of the 80s…
Rubie’s Fallen
Angel and other
Halloween
costumes are
still popular
although 2010
wasn’t quite as
busy as 2009
Which occasions have seen the biggest
increase in costume business for you
over the last 12 months?
1
Halloween
2
Adult birthdays
3
New Year
4
General/on-demand
5
Christmas
6
Children’s birthdays
What would you estimate is the percentage split in your sales between:
20%
Licensed
76%
Generic
42%
Children
70%
Adult
86%
Sale
33%
Hire
DECEMBER 2010/JANUARY 2011 PROGRESSIVE PARTY
29
Retail Barometer
Barometer: The Results
Do you intend on attending any training courses over the next year?
Keeping in touch
It would appear that party retailers are a savvy lot, with most of you
using trade magazines to ensure you stay up-to-date with the latest
happenings in and around the industry.
89%
Trade shows
71%
Supplier advice
69%
Internet sites and forums
61%
Reps and agents
56%
Trade associations
49%
30%
No
28%
Maybe
42%
Roll on 2011
How do you maintain your links with the trade and make
purchasing decisions?
Trade magazines
Yes
It would appear that party retailers are a positive lot, with most
respondents (59%) believing that 2011 will be better than 2010 and
that they will be showing business growth at the end of the year.
Unfortunately, 17% of respondents feel that they are in for a difficult
year and expect their business to decline to some degree.
3%
14%
16%
What are your predictions
for your business over the
next year?
■ Significant growth
Spring Fair is the most
visited trade show for the
party industry
■ Marginal growth
■ Remain on par
23%
43%
■ Slight decline
■ Major decline
Our sponsors
On with the show
With a certain amount of drama surrounding the various party trade
shows over the past few years Progressive Party wanted to find out
which shows are actually used by the industry. 36% of respondents
didn’t attend any shows at all in 2010, but of those that did Spring
Fair was the favourite by a good margin, with around half of those that
actively visit trade fairs making this the top of their must-see list.
Congratulations to Progressive Party for introducing this
informative new survey; we are proud to have been a major
sponsor. It’s very pleasing that such a high percentage of
respondents plan to diversify into balloons this year and to
find so many of our products on the Hero listings - should be
a busy Spring Fair for us! Many congratulations to the winner
of our sponsored prize, Catherine Pillar of Balloonatics in
Teeside who wins £2,500 of Qualatex products.”
What trade shows have you attended in the last year?
Lois Devlin, Qualatex Europe
Spring Fair
51%
Autumn Fair
24%
BCA Events
10%
NABAS Events
7%
Toy Fair
5%
Other
3%
Nuremberg Toy Fair
0%
Amscan was delighted to show our support for this exciting
survey and we found the results enlightening - particularly
the fact that the number one spot for partyware is confetti
and foil garlands, as confetti is an area we are looking to
develop in 2011 and further in 2012. It’s also good to see
that large numbers and milestone birthdays are top of the
list for foil balloons; as an area that Amscan specialises
in, it’s promising to see these results! We are very pleased
to announce the winner of our prize is Rebecca Lee-Allen
of Frog Orange in Headington, who wins a £1000 voucher
to spend on the Amscan stand at Spring Fair.”
Practise makes perfect
Louise Wayman, Amscan International
Of those respondents who had attended
training courses in the last year (44%
of all respondents) the majority had
been working on their balloon offering,
spending time sharpening up their design,
decor and twisting skills. It’s also good to
see that around a third of all respondents
intend to attend a course of some
description over the next year, pushing
the industry forward and developing
new skillsets.
Have you attended any training courses
in the last 12 months?
Learning balloon sculpture - like this
creation by Sue Bowler, CBA - is a great
way to move your business forward
Balloon-related training
68%
General retail training
19%
Other industry specific training
14%
Cesar was very pleased to have been able to sponsor this
exciting retail survey. We found it very interesting that
generic themes are so strong in the children’s party market,
as this is an area we are looking forward to developing and
expanding in 2011. We are also thrilled to announce the
winner of our prize is Clair McGregor of Party Godmother
in Bishop Auckland. Clair wins £1,000 of Cesar stock!”
Lynette Norris, Cesar UK
Rubie’s are delighted to have been a part of this important
snapshot of the UK’s party market. It’s encouraging to see
that dress-up features so positively in the results. We are
also happy to announce that Justin Atwell of Harlequin
Fancy Dress is the winner of £2,000 worth of Rubie’s stock.”
David Wootliffe, Rubie’s Masquerade
DECEMBER 2010/JANUARY 2011 PROGRESSIVE PARTY
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