Story Highlight
– Retailers under pressure for successful Golden Quarter.
– UK footfall down 1.7% year-on-year in August.
– US holiday spending increased, driven by higher prices.
– Luxury watch sales growing; middle market struggling.
– Building customer relationships crucial for independent retailers.
Full Story
As autumn arrives, retailers face significant pressures. Storefronts are being readied, Christmas marketing strategies are set, and inventory is being assessed in preparation for what the industry identifies as its key trading season. This critical period is essential not only for immediate sales but also for establishing the trajectory for the upcoming year.
Current sentiment from both the UK and the US indicates that retailers must actively engage customers rather than waiting for them to initiate purchases. The British Retail Consortium and Sensormatic have released figures indicating a 1.7% decrease in foot traffic across UK stores in August, with high streets experiencing a sharper drop of 3.1%. While this marks an improvement from a significant decline of over 10% in footfall witnessed earlier in the year, it still signifies challenges ahead as the sector enters its most vital quarter. Last year’s Golden Quarter concluded with a 2.2% decline overall, with December alone seeing a 2.9% drop, and shopping centres facing an even steeper decline of over 5%. Notably, high streets showed some resilience compared to their counterparts.
In the United States, the narrative is somewhat similar but reflects different dynamics. Last year marked the first time holiday spending exceeded $1 trillion, a rise of 4.1% compared to 2024. However, this increase was attributed to higher spending per transaction rather than an uptick in consumer activity, as independent jewellers reported a decrease in both unit sales and footfall during the critical trading weeks, indicating that while consumers were opening their wallets, they visited stores less frequently and made more considered purchases.
For watch retailers, attracting casual shoppers is becoming increasingly challenging. The focus is shifting from foot traffic to encouraging customers to visit stores by providing compelling reasons for their journey.
In contrast to broader high street trends, the luxury watch sector presents a varied landscape. Swiss watch exports during the first half of 2026 saw a modest decline of 0.7%, yet June marked a remarkable turnaround with an 11.2% increase in year-on-year growth. Shipments to the US rose by 12.7%, and those to the UK increased by 12.2%. Notably, the most significant growth is occurring in the luxury segment, particularly for timepieces priced over CHF 3,000, while mid-range products continue to face difficulties. Reports from Watches of Switzerland align with this trend, indicating that although affluent consumers are selective in their spending, they remain active in the market.
This environment presents a unique opportunity for watch retailers. As foot traffic declines, each visit becomes more valuable. Customers who schedule consultations arrive with intent, making them more likely to convert into sales. The research by McKinsey shows that nearly half of American consumers plan to start their holiday shopping by October; thus, the focus this Golden Quarter must be on building engagement opportunities before customers even enter the store.
Independent retailers possess a distinct advantage that larger companies may struggle to replicate: nurturing personal relationships. A loyal customer returning to a family-run business is engaging with a sense of trust as much as with the products themselves. This trust is especially invigorating during the Golden Quarter.
Although drawing in foot traffic may prove more difficult, the intent among consumers remains palpable. This quarter’s challenge lies in transforming this intent into store visits, meaningful conversations, and ultimately sales.
