Description
“Some 80% of sales within the online channel come from non-food products, and a vast majority of this is discretionary demand. As such the online channel could be significantly exposed to the cost-of-living crisis, and consumers cutting back on retail spend. However, the channel is also one with strong value credentials, with Mintel’s Report Changing Face of the High Street – UK, 2022 highlighting that 54% of consumers think the best prices are found online.”
This month’s UK Retail Briefing includes:
- Analyst Comment – Avoiding the subscription cull in the wake of the cost of living crisis
- An overview of the latest UK Retail sales
- Sector focus – Clothing Retailing
- Highlights of the latest UK Retail trend observations.
- Monthly headlines and retail news across the UK
Table of Contents
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Analyst Comment – Avoiding the subscription cull in the wake of the cost of living crisis
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UK Retail Sales
- Key points
- Retail sales
- Figure 1: Retail sales trends January 2019-September 2022
- BRC vs ONS
- Figure 2: UK retail sales y/y growth, BRC vs ONS, January 2019- September 2022
- Inflation and wages
- Figure 3: Real wages growth: Wages growth vs inflation, January 2016 –September 2022
- Inflation
- Figure 4: Annual % change in the consumer price index for selected product groups, January 2019- September 2022
- Looking forward
-
Sector Focus – Clothing Retailing
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- Figure 5: All clothing retail sales vs online clothing retail sales 2020- 2022
- Rising inflation to impact fashion sector
- Figure 6: Overall CPIH and garment CPIH percentage change, 2021-2022
- Growing focus on value for money
- Figure 7: Changes in women’s priorities when buying clothes for themselves, 2022
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Launch Activity and Innovations
- UK: Aldi launch soft plastic recycling points to all stores
- UK: Deliveroo reveals first physical store in collaboration with Morrisons
- UK: Carnaby Street reveals new recycling store ‘Are You Mad’
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Headlines for the Month
- Grocers
- Clothing retailing
- Footwear retailing
- Department stores
- DIY retailing
- Furniture retailing
- Homewares retailing
- Online
- Health and beauty retailing
- Book and stationery retailing
- Toys and games retailing
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News Analysis – Food and Drink
- Bakers
- UK: Greggs sales up 14.6%
- Grocers
- UK: Aldi
- …profits slip 86.5%
- …launch new eco-concept store to make recycling easier
- …to open 29 new stores
- UK: Asda
- …brings in restrictions on Just Essential range as demand grows
- …launches £1 meal deal for over 60s
- …reveals ‘new ‘Pounds Not Points’ loyalty campaign
- UK: Morrisons
- …reveals price cuts on 150 essential items
- …revenues grow 4.5%
- UK: Sainsbury’s to open pop-up giving away free frozen food
- UK: Tesco
- …reveals latest price-lock initiatives as profits slip
- …accelerates food waste plans
- …allow customers to collect IKEA orders from stores
- Specialist food and drink retailers
- UK: Hotel Chocolat to focus on UK market and closes US website
-
News Analysis – Clothing retailing
- UK: Joules looks to avoid collapse
- UK: Next profits up 16% but cuts forecast
- UK: Primark pilot self-checkout tills
- UK: Quiz revenues up 37.2% as customers look for ‘glamorous looks at value prices’
- UK: Reiss sales up 50% as demand for occasionwear returns
- UK: River Island turnover up 23.2%
- UK: Superdry sales up 9.6% after ‘encouraging start’
- UK: TK Maxx owner sees turnover grow 45%
- UK: Uniqlo expands repair services to Regent Street store
- UK: Zara reveals new metaverse collection
- Footwear retailing
- UK: Hotter Shoes owner sees revenues grow 10.4%
- UK: LK Bennett profits up 55%
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News Analysis – Mixed Goods
- Multi-sector retailing
- UK: Halfords acquires automotive specialist Lodge Tyre
- UK: M&S adds customer credit account to loyalty card
- UK: Mike Ashley to step down from Frasers Group board
- UK: Muji brings sustainability to the focus with refurbished Angel Central store
- UK: Wilko shifts to monthly rental payments to conserve cash flow ahead of Christmas
- Department stores
- UK: Department stores pay tribute to Queen Elizabeth II
- UK: John Lewis
- …reveals initiatives to ‘help customers spread Christmas costs’
- …reveals rental service ‘Dress for Hire’
- …losses total £99m due to inflationary costs
- UK: Retailers confirm store closures for Queen’s funeral
-
News Analysis – Household Goods
- DIY retailing
- UK: Kingfisher sees sales fall 4.1% but full-year guidance remains unchanged
- UK: Topps Tiles sales up 10.6% boosted by its online businesses
- UK: Wickes profits slip against strong comparatives despite sales growth
- Furniture retailing
- UK: DFS sees profits drop 44.8% due to the closure of European operations
- UK: Dreams sees profits grow 5.1%
- UK: IKEA is adding benefits for loyalty program members
- Homewares retailing
- UK: Dunelm sales up 16.2% helped by continued investment in digital
- Electrical retailing
- UK: Curry’s increases pay rates to help staff with cost-of-living crisis
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News Analysis – Online
- UK: Amazon
- …launch new Prime Early Access sale
- stop deliveries on the day of the Queen’s funeral
- UK: ASOS sales in August weaker than expected
- UK: Boden sales up 7.4% driven by the US
- UK: Boohoo profits drop 13% due to ‘weaker than anticipated consumer demand’
- UK: Eve Sleep sales drop 18% amid ‘truly unprecedentedly appalling market conditions’
- UK: Getir gives away free milk with orders over £20
- UK: LookFantastic reveals new rewards program
- UK: Made.com launches ‘strategic headcount review’
- UK: Ocado sees 2.7% uplift in sales but warns of inflationary pressures
- UK: THG decreases forecast as cost-of-living crisis impacts shoppers
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News Analysis – Other Retail
- Health and beauty retailing
- UK: Sephora to relaunch in the UK
- UK: The Body Shop reopens Stratford store with a focus on activism
- Sports and leisure goods retailing
- UK: Adidas sales up 23.6%
- UK: Gymshark delays London flagship opening
- Music and Video Goods Retailing
- UK: HMV releases new record label ahead of National Album Day
- Book and stationery retailing
- UK: Card Factory H1 revenues up 4.1%
- UK: The Works makes ‘good strategic progress’ but stays cautious on trading
- Toys and games retailing
- UK: Toys R Us reveals new UK ecommerce platform ahead of Christmas
- Economy
- UK: Royal Warrant to be removed following Queen’s death
- UK: August retail sales up 3.6%
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