We’ve seen a lot of growth in the past few years, and it seems set to continue. Consumers and retailers have been striving to find the best deals they can, especially anything that can retail for under a pound.
Nottingham (PRWEB UK) 28 November 2012
Bonnington plastics, a Nottingham based wholesaler who supply retail outlets across the UK, are expecting the growing pound line industry to benefit this Christmas, as it did during the recession.
Bonnington Plastics announced their projections for the coming Christmas period, expecting to see the pound line industry experience continued high growth, a trend beginning with the recent recessions.
The past four years have seen a bleak economic situation arise in the UK that, despite a government led policy of austerity, the country cannot imminently expect to escape. The recession lasting from 2008-9 brought the deepest reduction in GDP since the Second World War. Although minor growth occurred during the intervening years, from 0.1-2%, a second recession hit in early 2011, identified by the Telegraph as the first “double dip” recession to strike the UK since 1975.
In such a hostile economic environment many companies were unable to compete effectively. Issues accompanying the economic difficulties included high unemployment rates, hitting 8.1% in 2009, which in turn dragged down wages for the working public. Despite these conditions, one industry saw relatively strong growth, the pound line industry.
A shift of tastes
The Belfast Telegraph examined changing tastes of customers, who ask “why should I pay almost double this price in traditional retail outlets when I can buy it… for half the price?” Price checking websites saturate the internet, and are ported to mobile platforms which can be checked on the move. Wherever consumers are, they are able to check for the best deal to suit their reduced budgets. Stigma aimed against budget retailers has been severely reduced, with middle class consumers turning to cheaper outlets in order to maintain their pre-crisis shopping habits.
With the advent of mainstream enthusiasm for the pound line industry, retailers have been going through the same budget cutting processes as their customers in order to compete. A customer service representative from Bonnington Plastics wholesalers elaborated, “We’ve seen a lot of growth in the past few years, and it seems set to continue. Consumers and retailers have been striving to find the best deals they can, especially anything that can retail for under a pound. Retailers have been expecting lower prices, and by supplying our products at a very low price point we’ve seen a lot of growth. This process will only get more noticeable in the Christmas period, when families want to buy a wide supply of gifts and decorations on tighter budgets.”
The Christmas Squeeze
The BBC reported an expected average spending of £582 pounds per family this Christmas, an estimate which is actually reduced from previous years. With this context it’s not surprising that consumers are seeking the goods and gifts they’re accustomed to at lower price points than ever before. For wholesalers supplying the pound line industry, like Bonnington Plastics, keeping unit costs down can be immensely profitable. The growth this industry has enjoyed for upwards of four years seems set to continue, especially over the Christmas period.
With a wide range of seasonal goods, Bonnington Plastics aims to take advantage of the Christmas rush. Certain goods are widely considered to be traditional necessities, decorations, crackers, and gift packaging. By offering these products at minimal costs they can provoke sales and expansion in the outlets they supply.
Bonnington Plastics are a Nottingham cash and carry wholesalers, supplying a variety of poundlines and premium products to retailers across the UK. They experienced major growth over the otherwise bleak recession period, and plan to see this trend continue by providing seasonal goods at low price points.