Christmas items are popping up in shops and open markets in many parts of the country despite a biting economic crunch and a high rate of inflation that has eroded disposable incomes and dampened the purchasing power of Nigerians.
From colourful dresses and Christmas themes mostly for children and women to Christmas trees and decorations, fireworks, hampers, food items, and many more, traders are doubling up on their stocks and are full of optimism that the buyers would come.
Fairly used items are also being displayed, goods shipped into the country from mostly Europe and America, for those who can’t afford new ones.
Mr John Osas, popularly known as Father Christmas, who sells clothes and accessories for children and adults in Benin City, the Edo State capital, said he has invested so much in Christmas costumes and accessories such as Santa Claus (Father Christmas) regalia, eye glasses for children, Christmas trees and decorations, seasons greeting cards, among others.
“Sales usually pick up from the first week of December till the third week, and even up to the 25th,” Osas said.
He said the main targets for such Christmas items are children who often follow their parents to the market.
“Children often look forward to the season to get their Christmas accessories and fun items specially designed for the season,” he said.
Inflation rate in Nigeria rose to 27.33 percent in October 2023, from 26.72 percent in September, amid pressures arising from the government’s removal of fuel subsidies in May, which drove up the pump price of petrol to an average of N600 per litre, and the weakening of the naira following the Central Bank’s decision to float the exchange rate.
In the face of economic uncertainty, the apparent contradiction in the abundance of Christmas items in markets elicits curiosity, but experts say a key factor contributing to this trend is the psychological impact of the holiday season on consumer behaviour.
Sonarika Mahajan, the Founder of Humanitive, said the holiday season is the busiest and most profitable period of the year as customers compete to get the greatest presents, while companies compete to sell the best goods.
“The time around holidays is when individuals tend to feel happier. Spending more money on activities that make individuals happy, such as shopping for new items, is more likely,” Mahajan said in an October 2022 article “How consumer behavior changes during the festive period”.
“People prefer to spend more money and make more purchases when they are in a celebratory mood because, according to psychologists, it increases their self-esteem,” she said.
Traders are cashing in on this seasonal consumer behaviour and the attendant anticipated increased spending and heightened demand to stock up on Christmas items. These traders recognise that scarcity can drive up prices, especially for popular and seasonal items. By stocking up ahead of the peak shopping season, they position themselves to meet demand and potentially capitalise on increased prices, maximising profits during a crucial time for retail sales.
But there is a strategic aspect to early Christmas stocking that goes beyond immediate economic conditions, experts say.
“Traders aim to create a shopping environment that fosters a sense of abundance and choice, attracting early-bird shoppers and encouraging them to start their Christmas preparations sooner. This proactive approach not only helps traders secure sales but also establishes their shops as go-to destinations for festive needs,” said a consumer analyst who would not be named.
But stocking up early is not the exclusive preserve of sellers. Consumers with the wherewithal are also stocking up their homes ahead of the peak season in order to take advantage of relatively stable prices.
Mrs Okoye Amadin, a wholesaler of food items in New Benin Market, said that despite the economic downturn and the complaints of many Nigerians, she has been smiling to the bank since the second week of November because she has been experiencing massive sales on almost all her food items.
The food items that have moved quicker than others include bags of rice, vegetable oil, tomato puree, seasonings, and spices, she said.
In preparation for the Christmas season, Mrs Amadin said she had ordered a truckload of rice and other food items and expressed the hope that she would sell most, if not all, before the 31st of December.
However, Mrs Iyayi Osadebe, who sells provisions and beverages, complained that sales have been low.
As a sales strategy, she said from the first week of December, she would start putting together some of the items into baskets as hampers with Christmas themes and colours.
“I only hope that this year’s festive sales will be as fruitful as other years, though prices are not the same anymore. I am afraid that the rise in prices may scare customers this time around,” she said.
Additional reporting by Chuks Oluigbo.
