Suitcases Drive Luggage Growth as Consumers Return to Vacations
July 2010Luggage- FashionLife, UK
Total Luggage sales reached £44.3m between April and June 2010. This is up from the £43.8m for the same time period in 2009. Despite this value increase, volume sales decreased by 7.4% down to 1.4m units. These three months represent the key sales period each year for the luggage market, with particular emphasis at this time on suitcases. In 2010, with consumers preparing themselves for their summer vacations, suitcases accounted for 45% of total luggage sales.
Interestingly, the number of vacation bookings is up by 4% compared to 2009 according to travel tracking company, GfK Ascent. This is clearly having a positive effect on the sales of suitcases as people turn back to suitcases and the space they offer as opposed to travel bags which saw such strong growth last summer as consumers opted for a ‘staycation’ rather than travelling abroad.
The Mass Merchandisers are benefitting most from the increase in suitcase sales but there is strong value being seen within the Department Stores. The average sale price of a suitcase within the Department Stores has risen from £57 to £69 when comparing April-June 2009 to April-June 2010 so while volume is down by 26%, value is only down my 10% in comparison.
GfK Senior Account Manager Jonathan Hedges comments, ‘just prior to the election and subsequent budget we were seeing positive signs of recovery on the high street which the Department Stores were most ably placed to take advantage of. Holidays were booked well in advance of the recent budget so people are committed to their holiday now. As a result we are seeing fewer items sold but people are spending more when they purchase and this is reflected in the average sale price for Suitcases.’
Written by Jonathan Hedges
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