Late Easter worsens first quarter decline in UK

By
Richard Cooper

April 08, 2011

Total video unit sales in the UK fell by 17.8% to 46.1m units in the first quarter 2011 according to data released by the British Video Association (BVA). Consumer spending on all physical formats fared little better, down 14.5% compared to the same period in 2010, despite an increase in the average consumer price paid from £8.46 ($13.71) to £8.81, up 4.1% on the same period 2010.

Easter falls late in 2011 pushing the UK's national holidays associated with it deep into the second quarter. In contrast in 2010 the first two days of the Easter holiday, key retail shopping days, fell in the first quarter providing a considerable boost to that year's first quarter sales performance. Indeed the first quarter 2010 saw marginal growth in consumer spending on physical video whereas the year itself ended down 3.6%.

The loss of these critical shopping days in the first quarter 2011 compounded disappointing sales in January and February 2011, tracking down 4.3% and 7.3% respectively compared to 2010. However, year on year sales comparisons over the course of the second quarter are likely to improve. In 2011, in addition to the late Easter in April the UK has also gained an additional public holiday as a result of the Royal Wedding. This will undoubtedly boost retail sales performance and contrast sharply with the lull in 2010 caused by the FIFA World Cup.

IHS Screen Digest's UK forecasts showing a relatively shallow decline remain reasonable reflection of the market despite the poor quarterly result. Sales including the Easter 2011 sales peak will give a better indication of likely year on year trends and once this has been become available we will review forecasts accordingly.

Subscribers will be notified of any changes to UK forecasts as normal.

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Countries: UK