Description
“2023 is forecast to be an incredibly difficult year where value is top of the agenda. How difficult will depend on a multitude of factors outside of the retail sector’s control, but what 2022 has shown is that there is still significant opportunity in the market for those that are value-led, forward looking and with well laid foundations. Value is important, but those underlying and building drivers of consumer behaviour remain and there is ultimately much money to be made in conscious consumerism.”
This month’s UK Retail Briefing includes:
- Analyst Comment – 2022: The year of recovery that never was?
- An overview of the latest UK Retail sales
- Sector focus – Online 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 – 2022: The year of recovery that never was?
- Future confidence hits record low levels
- Figure 1: Financial confidence index, 2016-22
- Retail demand continues to be relatively resilient
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- Figure 2: Annual volume growth/decline in retail sales, non-seasonally adjusted, by major category, 2022
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- Figure 3: Online share of all retail sales, by month, 2019-22
- Value-led behaviours dominate in 2022, and will continue to be key in 2023
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- Figure 4: Attitudes towards loyalty schemes, 2022
- Shift to conscious consumerism continues despite drive for value
- Figure 5: Ethical shopping behaviours, 2022
- Market will see failure and opportunity for consolidation
- Looking to the New Year
- Future confidence hits record low levels
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UK Retail Sales
- Key points
- Retail sales
- Figure 6: Retail sales trends, 2019-22
- BRC vs ONS
- Figure 7: UK retail sales y/y growth, BRC vs ONS, 2019-22
- Inflation and wages
- Figure 8: Real wages growth: wages growth vs inflation, 2016-22
- Inflation
- Figure 9: Annual % change in the consumer price index for selected product groups, 2019-22
- Looking forward
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Sector Focus – Online Retail
- What we have seen
- Black Friday boosts online sales in November
- Figure 10: All online retail sales (excl fuel), 2019-22
- Non-food categories see uptick thanks to Black Friday
- Figure 11: All retail sales, by category, 2019-22
- Almost half of consumers not willing to pay for courier returns
- Figure 12: Consumer willingness to pay for returns, 2022
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Launch Activity and Innovations
- UK: Asda create 10,000 jobs as it rolls out new convenience store format
- UK: Karen Millen introduces rental platform
- UK: Shein opens Christmas pop-up in London
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Headlines for the Month
- Grocers
- Clothing retailing
- Footwear retailing
- Multi-sector retailing
- Department stores
- DIY retailing
- Online
- Health and beauty retailing
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News Analysis – Food and Drink
- Co-ops
- UK: Southern Co-op will send out 4,000 community gift cards
- Grocers
- UK: Aldi
- …launches Emergency Winter Fund supporting charities
- …launches its own sportswear range
- …prepares to sell nearly 50 million mince pies
- UK: Asda launch bar concept selling beer, cider & cocktails
- UK: Lidl profits quadruple as consumers’ shop more with discounter
- UK: Sainsbury’s promises to keep prices low amid rising cost of living
- UK: Tesco is offering pay advances to employees
- Food and drink specialists
- UK: Hotel Chocolat hopes resurgence of stores will navigate tough trading conditions
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News Analysis – Clothing and Footwear
- Clothing retailing
- UK: Burberry’s profits increase by 6%
- UK: Cricket to open flagship store in Liverpool
- UK: Fat Face
- …will not offer discounts until Christmas Eve
- …launches online personalisation service
- UK: H&M
- …shuts one of its stores as a means to cut costs
- …Snap announces partnership with H&M offering shoppers AR try-on experiences
- UK: Joules
- …to appoint administration as last efforts to secure funding fell
- …collapses into administration
- …Next buys Joules out of administration for £34 million
- UK: Mango opens first store in Newcastle
- UK: Mulberry reports loss before tax of £3.8 million
- UK: Primark
- …pledges to invest £140 million into UK high streets
- …trials its click and collect service
- …embarks on aggressive US expansion
- UK: Quiz sales rebound post-pandemic
- UK: Superdry set to refinance with £70 million deal
- UK: Theory to open store in Covent Garden
- UK: Uniqlo to open another location in Covent Garden
- UK: Whistles opens its first store in Belfast
- UK: Zara will transform Metrocentre location into megastore
- Footwear retailing
- UK: Dr Martens profits slip despite growing sales
- UK: Footasylum opens store in Hertfordshire
- UK: Kurt Geiger partners with the marketplace Secret Sales
- UK: Naked Wolfe opens first store in London
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News Analysis – Mixed Goods
- Multi-sector retailing
- UK: Halfords targets retirees in recruitment
- UK: M&S
- …announces acquisition of Thread
- …to open 2 new flagships in Leeds and Liverpool
- UK: Mothercare profits decline
- UK: Poundland to open 8 new stores for ‘Super Saturday’
- UK: Wilko
- …reports a £36.6 million loss
- …seeks to secure £30 million emergency loan
- Department stores
- UK: Debenhams administrators bring in £7 million as fees increase
- UK: Fenwick will close New Bond Street store in 2024
- UK: Frasers Group profits grew by 53% year-on-year
- UK: John Lewis
- …faces rising energy bills
- …partners with Abrdn launching a rental home venture
- UK: Selfridges opens a festive circular pop-up
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News Analysis – Household Goods
- DIY retailing
- UK: B&Q convenience store expansion
- UK: Kingfisher adjusts profit guidance downward amid growing economic concerns
- UK: Topps Tiles revenue increases 8%
- Furniture retailing
- UK: IKEA
- …invests in £12 million into cost-of-living support for UK staff
- …will not participate in Black Friday deals
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News Analysis – Online
- UK: AO World remains upbeat as losses widen
- UK: ASOS
- …launch experiential pop-up prior to Black Friday
- …launch same day delivery with Hived across London
- UK: Boohoo increases its stake in Revolution Beauty
- UK: Moonpig reduces its yearly sales forecast
- UK: PrettyLittleThing records decline in profits
- UK: Very launches a virtual make-up try-on feature
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News Analysis – Other Retail
- Health and beauty retailing
- UK: Boots
- …to offers its most affordable Black Friday deals to date
- …online sales increased by 18%
- UK: Superdrug goes live with online marketplace
- Opticians
- UK: Specsavers reports record annual sales
- Books and stationery retailing
- UK: The Works first-half sales rise 2.1%
- Pets and pet products retailing
- UK: Pets at Home
- …profits decline
- …offer customers more choice with RangeMe partnership
- Toy retailing
- UK: Hamleys opened a new store at Westfield London
- Economy
- UK: retail sales in volume fall 6.7% in October
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