Looking over their shoulders are the banks and analysts. A lacklustre Christmas, and the City will savage a retailer's share price. Do well over the festive season, and the management is lauded to the skies. This year you'd be forgiven for thinking that Next's Simon Wolfson was Scrooge personified, while M&S's Stuart Rose had been transformed into Bob Cratchett himself.

Dr Tim Denison of retail analyst SPSL sums up just how important Christmas is. "The BRC estimates many outlets make 60 per cent of their annual turnover between November and January," he says, "with an estimated £33bn passing through the tills in December alone."

Denison points out that in 2006 the week commencing December 17 was the busiest week of the year, having 64 per cent more pedestrian traffic than in an average week.

No wonder, then, that the retailers look to the mall operators to do all they can to draw in shoppers during the crucial Christmas period.

Alan Thornton, account director, research and retail marketing at Donaldsons, is one who questions whether this should actually be the case. "If the biggest sales peak is around Christmas, should shopping centres reinforce this and schedule their marketing spend around this period? Or would they benefit from trying to encourage spend at less busy times?" he asks.

But he concedes: "There is an expectation on the part of retailers as well as customers that the mall must live up to the excitement and atmosphere of Christmas. However, we believe that there's a more crucial job to be done - building awareness and loyalty among consumers in the run up to Christmas. Once a shopping visit is on a customer's agenda, how you fulfil their expectations is less about the money you spend on the decorations, and more about the overall experience they have when they get to the shopping centre."

So how to achieve that all-important experience? The most important factor is to plan ahead, according to Eldon Display's Richard Cramb. "We encourage all clients to think about their decorations as early as possible," he says. "This gives plenty of time to fine tune the scheme and means that they can take advantage of seasonal discounts."

Imagination's Lisa Turnbull says there are real cost savings to be had by booking early. "Year on year, a centre's management has to be prudent with budget allocation, which is why we're enjoying a great deal of success with our early order discount structure," she says. "The system is common further up the chain of supply with regard to Christmas decorations, so it's a genuine opportunity to save money. Depending on when an order is placed, a centre can save up to 7 per cent of its allocated budget."

It's also worth thinking about the durability of any display. Tim Pople, managing director of Studio Artefact UK, explains that there's a balance to be struck between quality and value. "The approach to purchasing decorations in the UK is the same as in North America 10 years ago," he says. "As retailers demand better value, shopping centres find that so much money is tied up in the cost of financing decorations that little funding is left for the design and display budget.'

"Cheaper decorations and stop-gap solutions dilute the overall effect and can ultimately have a dramatic impact on shopper opinions of the centre," he warns. "Quality decorations should last a minimum of five years, and should relate to the overall shopping centre marketing strategy. For example, a family-friendly shopping centre should have a different set and type of decorations from an upmarket designer shopping centre."

One element that's transforming the Christmas decorations market is light-emitting diode (LED) technology. "Over recent years we've seen lighting technology evolve and, as with any industry, time has allowed for many of these new products to become more affordable," says Imagination's Adam Nicholson. "LED has been the buzz product of the last three years both for its visual effect and its reliability."

Adrian Ford, managing director at Springfield Decoration & Design, anticipates that in 2007 LED lighting will amount to as much as 95 per cent of its lighting sales and installations.

Ford believes LEDs are definitely the way forward for Christmas lighting, offering better and brighter lights, greater reliability, much longer life and, most importantly, an almost 90 per cent reduction in power usage.

But conventional LEDs may not be for everyone. "Greater opportunities now exist," points out Imagination's Nicholson. "We can transform the ambient lighting in the centres using changing light patterns to match the decoration scheme. The result is a totally decorated, co-ordinated feel."

While the bright white LED lights are great for large atrium situations or exterior locations, some customers still prefer the old style 'warm' light. To satisfy this wish, Springfield has developed an LED which produces a soft light without the icy effect.

As well as lights, the other element everyone expects to see at Christmas is the grotto. "The challenge here is to enhance the whole experience," says Imagination's Turnbull. "No one can deny the joy once Santa is discovered deep in his grotto, but this is often preceded by a fidgety half hour or so waiting. By using interactive pieces and animations throughout the queuing process the whole experience can be enhanced so that both children and parents alike leave with a smile."

In addition to the fixed Christmas decorations, a Santa's grotto is still a big pull for family shoppers. However, increasingly the grottos are becoming a money spinner instead of an additional service to the shopper. Studio Artefact's Tim Pople feels this is not the way to go. "Paying to see Santa does not fit with the spirit of Christmas," he asserts. "Santa should be available for everyone to visit, not hidden away in an enclosed Grotto in the corner of the shopping centre only accessible for a fee.

"While presents and photographs can be offered as added extras - on a voluntary basis - I believe that the grotto itself should be seen as a family destination which will deliver additional dwell time and increase footfall over the festive period."

And while Donaldson's Thornton recognises that centres can be fiercely protective about their grottos, he believes very few make money. So with a marketing budget under pressure, Donaldsons has started to think more laterally. "A shop mobility scooter dressed up as Santa's sleigh proved an unlikely hit in a mall in Tamworth a few years ago and we've rolled out the idea in other places," he says. "'Breakfast With Santa' has also proved popular with shoppers and restaurants, as it moves the Santa experience directly into their stores and impacts on their tills."

By 'doing Santa' in a more creative way, Donaldsons has also managed to free up the mall space for other activities and income generation. "Where we've continued to run grottos, we've been sure to up the production standards and also to maximise PR value and data-capture opportunities," Thornton adds.

A number of other centres opted for a different approach to 'doing Santa' last year, and more are expected to follow in 2007. The logistical problems of long queues and disgruntled visitors waiting to visit Santa's grotto were avoided by Meadowhall when the Sheffield-based centre replaced its traditional Santa's grotto with a completely new concept. Known as 'Santa's Showtime', the centre offered visitors the opportunity to pre-book seats for a special 15-minute Santa show. The concept proved incredibly popular.

The Kingfisher shopping centre in Redditch turned hi-tech and installed a video messaging pod for Christmas. The Christmas Chatter Pod is the first of its kind to be introduced into a UK mall, and it provides shoppers with the opportunity to record a personal Christmas message to send to friends or family, via a link from the Kingfisher website. "People could record a personal message or even sing a song if they were feeling in the festive spirit," says centre director Ian McLelland.

And Propinvest invested in video technology as an alternative to the traditional grotto with a 'fly on the wall' exposé of Father Christmas called 'Big Daddy'. Video screens were installed in six centres: Martineau Place, Birmingham; The Galleries and Marketgate, Wigan; Headrow, Leeds; Prescot shopping centre, Prescot; The Paisley Centre, Paisley; and Callendar Square shopping centre, Falkirk. Father Christmas and his team broadcast in real time to each of the centres.

Through live links there were opportunities for over 600 children to speak one-on-one to the great man, 'Big Daddy' himself. Director of property Gabriel McLaughlin saw a dramatic increase in footfall as a result of Big Daddy. "This was a massive opportunity for shoppers to see the real Father Christmas for the very first time," she says.

The Belfry in Redhill cleverly combined its grotto with the centrepiece of its Christmas decorations. Footfall increased during December 2006 with families from far and wide choosing to shop there while taking in a visit to the free Santa's grotto housed within a massive 15-metre high purpose-built Christmas tree. "The tree is the largest we made for any shopping centre in the UK," says Springfield's Ford, who created the attraction. "Most centres have a tree of around 6 metres, and a few have 10, but this is an unusual size."

Customised for the centre, the huge traditional spruce tree, lit by 33,660 white LED lights, proved such a hit with children that visiting hours for the grotto had to be extended. The tree was built using contemporary materials and a heavy-duty frame to extend its life to 10 years.

The lights switch-on saw Father Christmas abseiling into the centre to the sound of helicopters and music, accompanied by a spectacular light programme and snow cannon. His space-age grotto inside the tree included atmospheric music and a flat screen TV depicting a log fire.

"Word got out about the amazing Christmas decorations here, with families and schools choosing to visit us rather than shopping centres in their own areas," says centre manager Richard Cowlard. "We were thrilled to see children completely mesmerised by the tree and our decorations. December was really successful for The Belfry, and we're looking forward to being even busier this year."

Of course, The Belfry was fortunate to have a vast atrium to house the stunning attraction. But as an open-air centre, Bracknell in Berkshire had an even larger space to fill. A new concept was launched in Bracknell last year with a giant 'Bauble' being created as a centrepiece for the display in the town centre. "This wasn't just about a decoration," explains Louisa Wright-Wastell, Bracknell's marketing manager. "We developed the Bauble as an interactive art project where the public could contribute their input into its creation and also interact with it as a display. We've used it to help us convey the fact that Bracknell is changing and becoming a more dynamic place to shop."

Trend spotting

Christmas decorations are as much a part of the fashion industry as clothing or footwear, and the most successful decorations are those that are in tune with the latest trends in the stores.

Caroline Gamester, managing director of LDJ, came to the Christmas business from the fashion industry and she has been quick to exploit synergies between the two. As well as Gamester the company has a team of eight designers working on both animated settings and decoration displays. The team is encouraged to spend time out and about visiting fashion shows and trade fairs across Europe, and the aim is that LDJ's decorations for Christmas 2007 should be as closely attuned as possible to the autumn/winter collections that retailers are going to be carrying.

Shopping Centre asked Gamester to look into her crystal ball and highlight the key fashion trend for next Christmas. She picked out four:

'Folk' incorporates earthy tones, oranges, browns with green and yellow accents and splashes of bright blue. It will include lively surfaces, contrasting colours, botanicals, layers, transparency and lightweight materials. The influences for this trend come from fairytales and Mother Nature.

'Retro' incorporates stripes, bold prints, flat surfaces, metallics, plastics and laminates, using monochrome colour with accents of red, yellow blue and orange. The influences for this trend are reinvention, 1940s-1960s silhouettes and Bridget Riley.

'Metallic' incorporates gunmetal, silver, steel and carbon, gold and bronze set against nudes with yellow accents. The textures will be mirrors, faceted surfaces, layer embellishments, brushed metal and glitter. The influence for this trend comes from urban landscapes, city lifestyles, luxuries and jewellery.

'Nightshade' incorporates tones of blue from navy to powder blue, violet, purples and lavender set against crimson and green accents. It will include strong shapes, lots of tonal variations, rich hues, bold contrasts, lace metatallics and pearlescents. The influence for this trend comes from rural and urban nightscapes, seascapes and silhouettes.

And another growing trend that Gamester identifies is the desire to decorate centres all the year round, rather than just at Christmas. "We're working on light projection and colour wash as a new and exiting way of enhancing the appearance of a shopping centre," she says. "This approach to decoration can be used on a year-round basis."

Ten tips for a successful switch-on

For most shopping centres switching on the Christmas lights is the biggest single promotional event in the calendar. So how do you make sure the event goes without a hitch?

Modus subsidiary Shoppertainment has wide experience of the big switch-on. The company offers these ten tips for a hassle-free launch.

1) First and foremost, ensure that any Christmas event appeals to the whole family.

2) Ensure that a wide range of events are booked for the day, possibly including face painters, stilt walkers, Christmas card workshops and a celebrity.

3) Make sure your celebrity is clearly briefed and understands what they have to do. Make sure that they are well managed.

4) Always have your budget agreed in advance. This will help to guide you on the products and entertainment you can organise.

5) To ensure promotions are as effective as they can be, be it an Easter campaign, a summer-long promotion or a Christmas light switch-on event, plan ahead. Speak to your promotion company and book early.

6) Carry out research to see what age your clients are and tailor events to suit them.

7) Everyone likes a freebie, so make sure you organise free events that appeal to the whole family.

8) Continually tie in your strategy with your event package so you're hitting your demographic and regional catchment.

9) Advertise your events well, and consider a teaser campaign to drip feed your message to your market.

10) If you please the children, they'll encourage their parents to come back.

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