Podcast Summary
High Street Challenges in 2018: 24,000 closures due to rising business rates, wages, slowing spending, changing consumer habits, and increased online spending. Asos also experienced a stock drop.
Key takeaway from this podcast episode is that the high street faced significant challenges in 2018, leading to over 24,000 closures across various industries. These closures were attributed to rising business rates and wages, slowing spending, changing consumer habits, and increased online spending. The trend even extended to the online world with Asos experiencing a significant stock drop. Meanwhile, in our taste test, Lee challenged Georgie and Simon to identify upmarket and budget items based on their Christmas-themed flavors. The ghosts of Christmas Past, Present, and Future guided the discussion on high street struggles, the potential pitfalls of gift cards, and the benefits of long-lasting gifts, respectively.
UK Retail Sector Faces Challenges Amid Uncertainty and Discounting: The UK retail sector is grappling with challenging times due to consumer uncertainty, Brexit, and prolonged discounting, making it harder for retailers to maintain full price points.
The UK retail sector is experiencing tough times, both online and offline. The high street has had a particularly challenging year, with November being described as the worst month ever by some retailers. However, conflicting retail sales figures and declining consumer confidence suggest a more complex picture. The uncertainty surrounding Brexit is contributing to consumers delaying purchases, creating a ripple effect that negatively impacts retailers. Longer sales and discounting have also trained consumers to expect lower prices, making it harder for retailers to maintain full price points. Overall, the retail sector is facing significant challenges that are likely to persist in the near future.
Reconsidering the Tradition of Buying Physical Gifts: People are shifting away from buying physical gifts due to clutter and awareness of unnecessary consumption, impacting retail sales, especially for larger retailers
This holiday season, many people are reconsidering the tradition of buying physical gifts due to clutter and a growing awareness of unnecessary consumption. This trend is not limited to children but extends to adults as well. The prevalence of sales and discounts, which have become more frequent and longer-lasting, is contributing to this shift. Retailers, both online and offline, are feeling the impact, with some experiencing disappointing sales results. Even popular retailers like Primark and Asos have reported weak performance. The closure of several well-known retailers in 2018 serves as a warning sign, and it's predicted that more big names could follow suit in the coming year. The smaller retailers, on the other hand, seem to be doing better. However, the underlying issue is not just about needing or wanting something, but also about the cultural significance of sales and the impact of cheap, disposable items on our homes and lives.
High street struggles: Debt burden from private equity ownership: The high street's struggles aren't just about changing consumer preferences, but also the financial burden of private equity debt, making it harder for businesses to meet repayments or raise funds, ultimately leading to closures. Government investment in town centers and easier parking could help.
The struggling high street, including retailers and restaurants, is not just due to changing consumer preferences towards experiences, but also the burden of debt from private equity ownership. This debt often leads to businesses being unable to meet repayments or raise funds, ultimately causing them to go under. To help the high street, it's suggested that the government invests in improving town centers and making parking easier. Despite economic indicators pointing to improvement, such as falling inflation and rising wages, consumer spending on the high street has not followed suit. This disconnect is attributed to the financial strain caused by debt. Overall, the high street's struggles are not solely due to consumers' shift towards experiences, but also the unsustainable financial situations of many retailers and restaurants.
Crisps and Gift Cards: Preferences and Controversies: While some enjoy unique crisp flavors, others find them less appealing. Gift cards, though convenient, can be less satisfying and risky compared to personal gifts.
While some people may enjoy unique and strongly flavored crisps, like those resembling turkey and stuffing or ham and pineapple, others may find them less appealing. Additionally, the discussion touched upon the controversy surrounding star-shaped crisps and their association with Christmas. Regarding gift cards, the consensus was that they can be a less personal and less satisfying gift option compared to thoughtfully chosen presents. Lee argued against their popularity, citing potential risks if the retailer goes under and the gift card becomes worthless. Despite the disagreements, the group continued their taste test, with each member sharing their opinions on the various flavors.
Gift cards: Convenient but with drawbacks: Gift cards can be inconvenient due to expired deals, potential loss, and environmental impact. Cash remains a more flexible alternative.
While gift cards can be thoughtful gifts, they come with their own set of inconveniences and potential drawbacks. The giver may unintentionally offer a gift card for an expired deal or a store where the item is cheaper elsewhere. The recipient may face the dilemma of using it or losing it, especially if the card has an expiration date. Moreover, the environmental impact of discarded gift cards is worth considering. Lastly, cash remains a more flexible option, allowing the recipient to use it as they see fit. The convenience and flexibility of cash make it a preferred choice over gift cards.
Setting a budget for holiday spending and distinguishing gifts from everyday expenses: Be mindful of holiday spending by creating a separate budget, and be aware of gift card policies and mince pie flavors.
When it comes to holiday spending, it's important to set aside a budget and compartmentalize it, rather than letting it blend into your everyday expenses. Gift cards can be tricky, especially when it comes to experiences, so be sure to check the booking and extension policies. As for mince pies, they might not be everyone's favorite, but try to guess the flavors based on appearance before taking a bite. In this discussion, the participants agreed that the star-topped mince pie might be more traditional, while the fancy one could have a plum or damson flavor. The chocolate mince pie was a surprise, and both agreed that the funny looking fella with almond and cinnamon on top was the budget option, while the other was the upmarket choice. The sweet treats, such as fudge and rice krispies, were also discussed, but no clear conclusions were reached about their flavors.
Loyalty Penalties: Unknowingly Paying More: Consumers are unknowingly charged loyalty penalties, costing them millions annually, while companies profit. Switching to better deals can save money.
Many people, including the geophysicist father in the discussion, unknowingly pay more for their household bills due to loyalty penalties. Companies profit immensely from these penalties, which can amount to millions of pounds annually. The father in the discussion was shocked to discover the extent of this penalty after his bills were reviewed by his son. The Competition and Markets Authority (CMA) has recently released a report addressing this issue and encouraging people to switch to better deals to save money. In essence, loyalty does not pay for consumers, but rather for the companies that charge them.
Help loved ones save money on bills this holiday season: Encourage loved ones to compare prices, demand better deals, or switch providers to save money on bills.
Individuals have the power to challenge and potentially lower their bills by comparing their prices to new customers and competitors, and threatening to switch providers if they don't receive a better deal. The loyalty penalty, where existing customers are charged more than new ones, disproportionately affects vulnerable and less internet-savvy individuals. This holiday season, consider helping loved ones save money by reviewing their bills together and encouraging them to demand better deals or switch providers if necessary. Georgie Frost, a consumer champion and podcast guest, successfully saved her father significant money by employing these tactics across various bills, including energy, BT, and breakdown cover. Remember, it's essential to be persistent and not be deterred by initial resistance from providers.
Negotiate for better deals with existing providers: Regularly review bills, negotiate for lower prices, ensure coverage equivalence, read terms and conditions, and express dissatisfaction for potential savings
Consumers should regularly review their bills and negotiate for better deals, even with long-term providers. The speaker shared an experience of successfully negotiating a lower price for his breakdown cover by comparing it with new customer offers. However, it's crucial to ensure that cheaper alternatives offer equivalent or better coverage to avoid potential pitfalls. The speaker also emphasized the importance of reading through the terms and conditions to fully understand what's being paid for. Another example given was the increase in internet bill despite no change in service quality. By contacting the provider and expressing dissatisfaction, the speaker was able to secure a lower rate. Overall, being proactive and questioning bills can lead to significant savings.
Consumers hold significant power in the marketplace: Consumers can easily compare offerings and switch providers for better deals, but not all attempts are successful. Companies must be competitive, transparent, and respect consumer preferences and data privacy.
Consumers now hold significant power in the marketplace, especially in the Internet age. Companies must be competitive with their pricing and offerings, or risk losing customers. If a better deal is available elsewhere, don't hesitate to take advantage of it. However, not all attempts to switch providers will be successful. In the example given, the speaker upgraded their phone and found a better deal with a different provider, but not all interactions with customer service resulted in a successful switch. Consumers also have the right to complain and seek compensation if they feel they have been treated unfairly. Additionally, the speaker shared an annoyance with unsolicited emails from companies, despite having opted out of automatic renewals and not wanting to receive the emails. This highlights the importance of companies respecting consumer preferences and data privacy. In the spirit of the holiday season, the conversation turned to desserts, with the speaker describing a dessert that looked like a brain and had a pungent smell, much to the dismay of the other participant. Despite the negative reaction to the jelly, the yogurt was well-received. In summary, consumers have more power than ever before to make informed decisions about their purchases and hold companies accountable. Companies must be competitive and transparent, and respect consumer preferences and data privacy. And sometimes, desserts can be a bit hit or miss.
Tasting and Discussing Festive Beverages: Baileys and The King's Ginger: Misconceptions about Baileys and The King's Ginger's appearance led to assumptions they were brandy, while enjoying festive beverages and testing knowledge brought camaraderie during the holiday season.
During the holiday season, people enjoy indulging in various festive beverages. In this discussion, two such beverages, Baileys and the King's Ginger liqueur, were tasted and identified. Baileys is a salted caramel cream liqueur, while the King's Ginger is a ginger-based liqueur. Both were mistakenly assumed to be brandy due to their appearance. The King's Ginger, despite its ginger flavor, was also thought to be a caramel liqueur. The discussion also included a Christmas quiz with questions related to A Christmas Carol by Charles Dickens, and a comparison of Forbes' fictional rich list ranking of Ebenezer Scrooge's wealth in pounds and dollars. Overall, the conversation showcased the enjoyment and camaraderie of trying new holiday beverages and testing each other's knowledge in a fun and engaging way.
A Christmas Quiz: Movies, Music, and More: Participants engaged in a competitive quiz, answering questions on movies, music, spending habits, and trivia. Shared personal experiences and opinions, with Leigh winning a book as the prize.
The discussion revolved around a Christmas quiz where participants answered questions related to movies, music, spending habits, and trivia. The quiz was competitive, with points awarded for correct answers. Some of the notable answers included the box office earnings of "Scrooged," the Christmas number 1 songs, and the sales figure of the Rubik's cube. The participants also shared their personal experiences and opinions, such as the popularity of certain songs and the impact of online shopping on holiday spending. The quiz concluded with Leigh emerging as the winner, receiving a book as a prize. The conversation also touched upon various topics like the Santa Claus rally, travel disruptions during the festive season, and the allure of political gossip. Overall, the discussion showcased a mix of trivia, personal anecdotes, and friendly competition.
Miscommunications and misunderstandings during a holiday taste test lead to competitive scoring: Despite differences in identifying savory and sweet dishes, both participants struggled with the origins of certain items, revealing assumptions about supermarkets.
During a holiday taste test, there were several miscommunications and misunderstandings between two participants, leading to a competitive scoring. While one participant, Georgia, excelled in identifying treats, she struggled with identifying the correct origins of various food items. The other participant, Simon, had a better grasp of the savory dishes but made errors in identifying desserts. The miscommunications resulted in a 4-3 lead for Georgia. However, they both struggled with identifying the correct origins of certain items, such as mince pies and jellies. The taste test also revealed that both participants had different assumptions about which supermarkets were budget and which were upmarket. The test concluded with a surprising win for Georgia, who was awarded Prosecco flavored crisps as her prize. The team encouraged listeners to send in their own festive food-related questions or suggestions for future episodes.
Consider gifting Premium Bonds from NS&I for children's future: Gift Premium Bonds from NS&I for children's future financial growth, offering a chance to earn interest and win prizes.
Recommendation to consider gifting Premium Bonds from NS&I for children's future financial growth. The speakers expressed their gratitude to the team at This Is Money for their excellent reporting throughout the year and to their partners Enes and I. They ended the podcast by wishing their listeners a merry Christmas and reminding them of the gift option for their little ones at NS&I.com. Premium Bonds are a popular savings product that offers the chance to earn interest and win prizes, making them an ideal present even when children grow older.
