Table of Contents
Analyst Comment: The Impact of COVID-19 on Shopping Behaviour
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- Overview
- Concern about risk of infection is decreasing but remains high
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- Figure 1: Those worried about the risk of being exposed to the coronavirus, March-July 2020
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- Figure 2: Those worried about the risk of being exposed to COVID-19, by age group, April – July 2020
- Majority of Brits still feel uncomfortable to resume ‘normal’ activities
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- Figure 3: Those claiming to feel uncomfortable doing the following activities, 9th-15th July 2020
- Shift to online appears to be a longer-term trend
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- Figure 4: Those claiming to Limiting the time spent in-store, April-July 2020
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- Figure 5: Those claiming to have increased the amount of shopping they do online, April-July 2020
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- Figure 6: Those claiming to have increased the amount of shopping they do online, by age, April-July 2020
- Opportunities for mobile and online payments
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- Figure 7: Those claiming to be trying to avoid using cash where possible, April-July 2020
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- Figure 8: Those claiming to be trying to avoid using cash where possible, by age group, April-July 2020
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- Figure 9: Those claiming to be using click & collect more, April-July 2020
- Opportunities for retailers in online shopping
- Use of AI and AR grows
- Retailers are launching or expanding online offerings
- Online comes in-store
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- Figure 12: Selfridges’ Instagram collaboration the ‘Instagram Edit’, 2020
- Those cutting down on non-essential spending return to April levels
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- Figure 13: Those claiming to be cutting down on non-essential spending, April-July 2020
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- Figure 14: Those planning to spend more in the following sectors, May-July 2020
UK Retail Sales
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- Key points
- Retail sales
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- Figure 15: Retail sales trends, January 2019 – June 2020
- BRC vs ONS
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- Figure 16: UK retail sales y/y growth, BRC vs ONS, January 2018 – June 2020
- Inflation
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- Figure 17: Annual % change in the consumer price index for selected product groups, May 2019 - June 2020
- Inflation and wages
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- Figure 18: Real wages growth: Wages growth vs inflation, January 2016 – June 2020
- Consumer confidence
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- Figure 19: Mintel Financial confidence tracker, January 2018 – June 2020
- Looking forward
Sector Focus – Household Goods
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- The sector – what’s included
- The sector in context
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- Figure 20: Major household goods categories, share of sales, 2019
- Figure 21: Spending on household goods products, 2014-19
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- Figure 22: Household goods sectors year on year growth in sales, by quarter, Q1 2016-Q1 2020
- The shift in shopping behaviours
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- Figure 23: Changes in shopping behaviour, 2nd July- 9th July 2020
- Spending is withheld
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- Figure 24: Planned spend on Home products in the coming month, 11th June – 9th July
- Sharp deflation amid disruption
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- Figure 25: Inflation in household goods, % change over 12 months, June 2019-June 2020
Launch Activity and Innovations
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- UK: Asda and Uber Eats rolls out grocery home delivery service this week
- UK: Forever 21 relaunches online in selected European markets
- UK: PC Currys reopens 131 stores as ‘tech help hubs’
Headlines for the Month
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- Grocers
- Other food specialists
- Clothing retailing
- Footwear retailing
- Multi-sector retailing
- Department stores
- DIY retailing
- Furniture retailing
- Homewares retailing
- Online shopping
News Analysis – Food and Drink
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- Convenience stores
- UK: Nisa welcomes forecourt Ascona Group amongst its 242 new store recruitments
- Grocers
- UK: Aldi and Deliveroo extend tie-up into London
- UK: Morrisons
- …opens dedicated website for its clothing brand Nutmeg
- …reopens all supermarkets with an added hot-food takeaway service
- UK: Sainsbury’s online grocery sales more than double in the first quarter
- UK: Tesco
- …first quarter sales boosted by surge in demand during lockdown
- …to use surplus food to power stores in new renewable energy push
- Off-licences
- UK: Majestic Wines to reopen its entire store estate
- Other food specialists
- UK: Boost in online sales accelerates Cake Box’s delivery service
- UK: Holland & Barrett and Booths launch on Deliveroo to boost customer reach during lockdown
- UK: Pret
- …to risk 1,000 jobs as it closes 30 stores
- …trials click and collect service
News Analysis – Clothing and Footwear
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- Clothing retailing
- UK: AllSaints launches CVA for UK and US stores
- UK: Facemask vending machines launched across the UK
- UK: Facemasks will be mandatory in shops across Scotland
- UK: H&M to close 170 stores internationally
- UK: Joules to end its current financial year in the red thanks to COVID-19
- UK: Matalan outlines recovery phase as revenues grow 2.3%
- UK: Monsoon Accessorize bought out of administration by owner
- UK: New Look warns landlords of pre-pack deal if it cannot renegotiate turnover-based rents
- UK: Oliver Bonas receives £3.5 million in funding to help it transition out of lockdown
- UK: Primark
- …reopens all 153 stores in England with ‘strict social distancing protocols’
- …Q3 sales fall but reopened stores has seen an encouraging performance
- UK: Quiz appoints administrators to subsidiary Kast Retail in a bid to negotiate rent terms
- UK: River Island
- …plans to cut 250 head office roles following fall in sales
- …signs first licensing agreement with KMI Brands
- UK: Ted Baker raises £100m to help it weather the COVID-19 downturn
- UK: The Fraser Group buys £100m stake in Hugo Boss
- UK: TM Lewin to close all stores as it works to ‘right-size’ the business
- Footwear retailing
- UK: Hotter shoes launches CVA to downsize store portfolio
- UK: Kurt Geiger will donate first month of store profits from June 15
- UK: LK Bennett to reduce selected head office employees’ salaries by 10%
- UK: Shoe Zone closes 20 stores amid half-year losses
News Analysis – Mixed Goods
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- Multi-sector retailing
- UK: B&M reports strong full year results despite COVID-19 disruptions
- UK: Halfords sales inch up in the year as cycling drives lockdown sales
- UK: M&S relaunches overhauled loyalty programme
- UK: Mothercare looks for new funding providers
- UK: Poundstretcher launches CVA as it ‘seeks to restructure UK store portfolio’
- UK: Wolf & Badger reports ‘record growth’ amidst COVID-19 peak in April
- Department stores
- UK: Debenhams reveals more store closures in shopping centres after talks with Intu fail
- UK: Harrods
- …to open at Westfield London on July 3
- …to cut 680 jobs blaming COVID-19
- …holds sale outside Knightsbridge flagship store for the first time in a new Westfield outlet
- UK: John Lewis warns of job cuts as part of its post-coronavirus cost-cutting drive
- UK: Liberty London rebrands logo and website in celebration of its 145th anniversary
News Analysis – Household Goods
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- DIY retailing
- UK: Kingfisher
- …and delivery service DPD hire 7,500 workers to meet increasing demand
- …reveals new strategic direction as full year profits fall
- UK: Topps Tiles sales decline 53% in the third quarter
- UK: Travis Perkins to cut 2,500 UK jobs and close 165 stores across its group
- Electrical retailing
- UK: Microsoft moves online and closes its global network of stores
- Furniture retailing
- UK: Bensons for Beds bought out of administration in pre-pack deal
- UK: Oak Furnitureland future sealed in a pre-pack administration deal
- Homewares retailing
- UK: Dunelm reveals its first ‘localised edit’ concept store in West Sussex
News Analysis – Online
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- UK: Amazon
- …launches start-up accelerator programme
- …CMA approves Amazon and Deliveroo tie-up
- …may postpone Prime Day to October
- UK: Ao.com teams up with Emarsys platform in new personalisation push
- UK: Boohoo
- …launches urgent review of UK supply chain
- …snaps up Oasis and Warehouse online businesses
- UK: Emma revenue grows 120% during first half of 2020
- UK: Gear4music reports significant increase in demand during coronavirus lockdown
- UK: Google launches new campaign to help small British businesses
- UK: Instagram expands in-app shopping feature to small businesses and individual creators
- UK: MaskClub launches in the UK with a subscription service
- UK: N Brown posts 6.1% dip in revenues but 5.5% growth in online
- UK: Naked Wines reduce losses as lockdown accelerates sales
- UK: PrettyLittleThing films summer campaign with drone
- UK: Sosandar reduces losses for its first quarter thanks to quick response to COVID-19
- UK: Studio Retail Group report 55% rise in sales
- UK: The Very Group cuts 106 head office roles but creates 100 jobs for its technology division
News Analysis – Other Retail
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- Health & beauty retailing
- UK: Boots parent and Microsoft team up in personalisation push
- Sports and leisure goods retailing
- UK: JD Sports
- …appoints administrators to its Go Outdoors brand
- …reacquires Go Outdoors in pre-pack administration deal
- …calls for ‘rental realism’ as it looks to a new normal
- UK: Pure Electric reopens 11 converted Cycle Republic stores
- UK: Under Armour to launch ‘sportmask’ for athletes
- Toys and Games Retailing
- UK: The Entertainer revamps Bullring flagship in Birmingham with £1m investment
- Shopping centres
- UK: Intu falls into administration after talks with lenders fail
- UK: Westfield reveals plans to turn House of Fraser store into co-working space
News Analysis – Economy
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- UK: Retail sales rebound in May but still down 9.2%
- UK: Retailers allowed to reopen today after three months in lockdown
- UK: Scotland to reopen non-essential stores from June 29
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