The all-important Christmas sales figures for leading retailers including Next, B&M and Greggs provide a boost for those who think the death of the physical store has been overplayed.
All three have posted a rise in sales over the holiday period despite inflation, rail strikes and freezing weather.
Fashion retailer Next's sales were up by 4.8% in the nine weeks to 30 December after a "dramatic boost" from the cold snap last month which saw pent-up demand for "cold-weather" goods during the warm October and November period unleashed.
It said sales were £66 million better than its previous guidance of minus 2% for the period and it has increased its full pretax profits guidance by £20 million to £860 million, up 4.5% on last year.
The group, which has around 500 stores across the UK, said both "online" and "retail" exceeded expectations, but bricks-and-mortar retail was particularly strong.
It suggested this was because it had underestimated the negative effect COVID was having on people coming to its stores last year. It may have also underestimated the effect improved stock levels would have on both businesses, with stock levels exceptionally low last year as a result of supply-chain disruption.
Next did warn that higher energy bills and mortgage rates would hit shopping in the year to come. And it said that rising costs and supply-chain issues would mean it would be increasing prices for its spring and summer clothes and home goods by 8%.
Simon Morris, managing partner at GCW, said the sales figures for retailers this week were surprising for some as there is often a blanket assumption that people don’t shop "in-store" anymore, but he said there are a handful of reasons the Christmas results may be above expectations.
"Firstly, this was the first 'COVID unaffected' Christmas meaning people could visit stores, still the preferential (although not exclusive) means of shopping. We anticipated this would also create something of a ‘blow-out’ especially in light of the cost of living issues which are expected to bite harder during Q1 2023. The grocery figures particularly bear this out."
Morris added that no restrictions and an ability to socialise helps drive fashion and beauty spending and hospitality.
"Also delivery worker strikes showed the vulnerability of a pure play only presence without the ability to fulfil through store which undoubtedly played into the hands of those with a branch network."
Will Thomas, a partner at KLM Real Estate, said his initial thoughts based on industry discussions he has had suggest there is an ongoing desire to reengage with local centres and to support local businesses, helped by changed working patterns.
Other factors were concerns about orders arriving in time for Christmas with the postal strikes a definite factor and an ongoing drift away from online as physical shopping reverts to being a family activity with the impact of new leisure offers in town centres taking affect.
"There is also a desire to ‘touch-test’ a present before purchasing and we see that the accessibility of the larger urban centres impacted by train strikes is encouraging shoppers to stay closer to home."
Thomas said the "provenance of product" is also increasingly important. "That is especially for younger generations. There is a clear shift away from buying cheaply online and ignoring the supply origin."
David Fox, co-head of Retail Agency at Colliers, said the sales reports from Next, B&M and the like are "in line with both wider market sentiment and the feedback we are hearing from our clients".
"Despite the squeeze on household budgets the trend in 2022 saw shoppers returning to retail destinations that could offer a strong tenant mix and complete leisure experience. In the weeks running up to Christmas this was further compounded by the difficulties faced with online deliveries.
“I would expect this to continue in 2023 across all retail asset classes, particularly if the weather continues to be mild taking the pressure off household utility bills and encouraging the simple pleasure of being able to go out after the restrictions of the pandemic.”
Backing Next's comments about improved footfall and performance in physical stores, new figures from research firm Springboard find shopper footfall in December was up 5.8% on the month before and 9.9% higher than a year before.
Separately bakery chain Greggs and discount chain B&M did better than expected, perhaps as the general public sought out budget options during the cost of living crisis.
Greggs said sales lifted by nearly a quarter over 2022, a period that saw it add 150 shops to its portfolio.
Discount retailer B&M said comparable sales rose 6.4%, suggesting that customers are prioritising value for money more than ever.
Speaking to the BBC, Russ Mould, investment director at AJ Bell, said that all three of the companies are "united by having a presence on retail parks where business has been better than expected in general" particularly as widespread train strikes in December stopped a lot of people from travelling to city centre shops.