Description
Overall, in one of the most difficult festive periods due to the COVID-19 pandemic, demand held up well – indeed the 3.2% growth in November and December beat even our best case scenario. This was down to both a determined consumer base, to enjoy the festive period, and the adaptability of the retail sector – which showed it had learnt much from the first lockdown in how to trade under the harshest restrictions.
Key issues covered in the report
- Analyst comment – Christmas Trading 2020
- An overview of the latest UK retail sales – Impact of COVID-19
- Highlights of the latest UK retail trend observations
- Sector Focus – Online Retailing
- Monthly UK retail news headlines and analysis
Table of Contents
-
Analyst Comment – Christmas Trading 2020
- Tougher comparatives for 2020
- Christmas trading held up
- Timing of Black Friday key
- Online continued its surge
- Retail adaptations helped drive sales
-
UK Retail Sales
- Key points
- Retail sales
- Figure 1: Retail sales trends, January 2019 – November 2020
- BRC vs ONS
- Figure 2: UK retail sales y/y growth, BRC vs ONS, January 2018 – December 2020
- Inflation
- Figure 3: Annual % change in the consumer price index for selected product groups, January 2019 – December 2020
- Inflation and wages
- Figure 4: Real wages growth: Wages growth vs inflation, January 2016 – December 2020
- Consumer confidence
- Figure 5: Consumer confidence, January 2021
- Looking forward
-
Sector Focus – Online Retailing
- December sees online grow 46%
- Figure 6: All online retail sales (exc fuel), 2019-2020
- Household goods sales increase over festive period
- Figure 7: % Change in selected online categories, 2019-2020
- Second national lockdown encouraged more online shopping
- Figure 8: Changes in consumer behaviours due to COVID-19, 8th January 2021 – 13th January 2021
- December sees online grow 46%
-
Launch Activity and Innovations
- UK: Central England Co-op launches refill trial at Lichfield store
- UK: Boux Avenue reveals new sportswear collection
- UK: Hamleys launches on eBay to boost online presence
-
Headlines for the Month
- Grocers
- Clothing retailing
- Multi-sector retailing
- Electrical retailing
- Carpet retailing
- Online
- Book and stationery retailing
- Pets and pet products retailing
- Jewellers
-
News Analysis – Food and Drink
- Grocers
- UK: Aldi
- …reports strong Christmas trading instore and online
- …set to roll out click-and-collect service to over 200 stores for Christmas
- UK: Asda pilots vegan butchers counter ahead of Veganuary
- UK: Lidl customers to get £10 discount for shopping bills over £40
- UK: Morrisons
- …rolls-out vaccine drive-through in 50 car parks
- …teams up with Deliveroo to deliver Christmas essentials
- …sees boost in Christmas sales as customers shopped early
- UK: Sainsbury’s
- …warns of food shortages as France bans freight from UK
- …to double Christmas workers to 12,000 to cope with online demand
- …sees Christmas sales increase 9.3%
- UK: Tesco
- …prepares for a no-deal Brexit as it warns of rising food prices and shortages
- …rolls out limits on essential household items ahead of Christmas
- …former Tesco chief executive to be knighted in recognition for efforts during the pandemic
- UK: Waitrose extends bookable shopping service to 110 stores
-
News Analysis – Clothing and Footwear
- Clothing retailing
- UK: Arcadia
- …administrators look for offers for Topshop flagship
- …Frasers Group owner confirms interest in Arcadia brands
- …Arcadia subsidiary Evans rescued out of administration by Australian retail group
- UK: French Connection receives funding for US business
- UK: Gap to permanently close Oxford Street store
- UK: Joules sees store sales drop 58% amidst tighter COVID-19 restrictions
- UK: Matalan HQ sold for £25m to founder
- UK: Moss Bros CVA proposals approved but no details yet on jobs impacted
- UK: Next sales ‘much better’ than expected after strong Christmas trading
- UK: Primark
- …warns of £220 million loss due to Tier 4 restrictions
- …owner reportedly interested in making Arcadia offer
-
News Analysis – Mixed Goods
- Multi-sector retailing
- UK: B&M revenues up 22% in Q3 and rewards bonuses to colleagues
- UK: Frasers Group
- …withdraws profit guidance as London goes into Tier 4
- …half-year profits rise 18% thanks to post-lockdown demand
- …confirms it will not make Mulberry offer
- …Flannels to open 15 new stores in the coming five years along with first beauty hall
- UK: M&S
- …reports a mixed set of Christmas trading figures
- …rolls out instant payment solution to 200 stores
-
News Analysis – Household Goods
- DIY retailing
- UK: Topps Tiles in a ‘fundamentally stronger’ position compared with first lockdown
- UK: Travis Perkins sales up 8.6% in October thanks to DIY demand
- Electrical retailing
- UK: Dixons Carphone sees 17% jump in sales and thanks the ‘grit and skill’ of employees
- Carpet retailing
- UK: Tapi Carpets sales up 30% as it continues to grow its store portfolio
- Furniture retailing
- UK: DFS expects interim profits to meet upper end of forecast despite ‘extensive’ disruptions
-
News Analysis – Online
- UK: Made.com hands out shares in the company to staff following ‘extremely strong’ sales in 2020
- UK: Matchesfashion reports £6m loss for 2019 due to increased investments in operation and technology
- UK: Ocado increases profit outlook following 35% uplift in fourth quarter revenue
-
News Analysis – Other Retail
- Health and beauty retailing
- UK: Boots owner sells majority of wholesale arm to focus on retail business
- Book and stationery retailing
- UK: Paperchase on the brink of collapse
- Sports and Leisure Goods Retailing
- UK: JD Sports
- …buys independent menswear Wellgosh
- …buys US footwear retailer Shoe Palace
- UK: Pure Electric starts European expansion in France and Spain
- Jewellers
- UK: Watches of Switzerland increase full-year revenue outlook following ‘strong trading’
- Pets and pet products retailing
- UK: Pets at Home increases profit guidance following ‘strong sales momentum’
-
News – Economy
- UK: Retail sales grow 7.6% in November
- UK: London to be put under tier three restriction this week
- UK: London moves into Tier 4 and non-essential shops close less than two weeks before Christmas
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