Food and Non-food Discounters - UK  

“Despite concerns around their lack of ecommerce offering and potentially crowded stores, the discounters saw sales surge in pandemic-struck 2020. Looking ahead, the sector looks set to leave these turbulent 18 months behind with a spring in its step as continuing economic uncertainty makes their value-led proposition tempting for consumers.”

– Piers Butel, Retail Analyst

This Report looks at the following areas:

• The impact of the COVID-19 pandemic on the discounter sector

September European Retail Briefing  

The pandemic accelerated the development of rapid grocery delivery services throughout Europe, with consumers staying home and major grocers being unable to meet demand for home deliveries with their existing online capacity. Even pre-pandemic, on-demand grocery deliveries were already expanding, and this trend looks set to continue in the next few years.

Key issues covered:

• Analyst Comment - What are the prospects for rapid grocery delivery services across Europe?

• September UK Retail Briefing - UK  
  September UK Retail Briefing - UK

  

  Covid-19 has made people reprioritise, with people giving aspects such as the environment and their local community higher priority than they did before the pandemic hit (see Impact of COVID-19 on Consumer Behaviour). This has, in turn, highlighted the need for retailers to adopt ethical policies. Shoppers now expect retailers to show compassion and understanding for staff and factory workers; those who have taken advantage of vulnerable people and exploited the situation have been called out. If retailers really want people to start trusting them and generate more customer loyalty, they may need a strategy reset.
• Luxury Goods Retailing - International  
  Luxury Goods Retailing - International

  

  “Attracting Gen Z and Young Millennial shoppers is the key to sustaining a luxury brand. Luxury retailers and brands must continue innovating and connecting to a digitally-minded younger audience. Offering items at entry-level price points can encourage brand loyalty that will last until these younger adults reach their full earning potential. A focus on sustainability will also help attract these more environmentally-conscious younger consumers.”– Tamara Sender Ceron, Senior Fashion Analyst
• Ethical retailing - UK  
  Ethical retailing - UK

  

  “Ethical retail practices have been very much in the spotlight since the start of the COVID-19 pandemic. Attention was drawn to how retailers treated both staff and members of the public during the pandemic. In addition, shoppers across all age groups are increasingly concerned about the effect their shopping habits might be having on the environment. Most consumers now feel it is important to shop for ethical products when buying frequently purchased items such as food, clothing and beauty products. As a result, retailers must do a good job of communicating any ethical initiatives to consumers.”– Chana Baram, Senior Retail Analyst
• August UK Retail Briefing  
  August UK Retail Briefing

  

  Similar to wider retail, COVID-19 has had a profound impact on the furniture market since its outbreak in March 2020. However, in contrast to many of these other markets, this has not been characterised by a sharp decline. Although spending dropped in 2020, following huge turmoil in the middle of the year, furniture, and the home more broadly, were among the best insulated non-food retail sectors during this period. Although the disruption has led to the non-specialist retailers taking a greater share.
• August European Retail Briefing  
  August European Retail Briefing

  

  The global market for luxury goods declined in value by 13% in 2020 based on reported sales, due to lockdowns and other restrictions affecting consumers’ ability to make purchases. This rate of decline would have been even greater, were it not for the fact that the region which accounts for the largest proportion of sales, Asia-Pacific, was the quickest to recover from the initial impact of the COVID-19 outbreak.
• June European Retail Briefing  
  June European Retail Briefing

  

  "Traditionally, DIY purchasing has not been particularly well suited to ecommerce. However, as a result of the lockdown measures imposed in response to the COVID-19 outbreak, we have seen an increase in online shopping generally and within the DIY sector. In many markets sales have grown fast, advancing the channel’s progress within the DIY category by several years. However, this has clearly benefitted both DIY specialists’ online businesses and the non-specialists, such as Amazon and the grocers."- Emily Viberg, Retail Analyst
• June UK Retail Briefing  
  June UK Retail Briefing

  

  "The last year has seen new consumers undertake gardening as an activity amid national lockdowns and unprecedented time spent at home. Nearly a third (32%) of those with access to a garden or outdoor space said that they had picked up gardening as a hobby since the pandemic. What is particularly interesting about these newcomers to the hobby, however, is their age and where they live. Almost half (45%) of those aged 16-34 and 39% of those living in cities had taken up gardening." - Emily Viberg, Retail Analyst
• DIY Retailing - Spain  
  DIY Retailing - Spain

  

  “As a result of the enforced home confinement for much of the year because of the pandemic, the home sector was one of very few areas to see a strong performance in 2020. Leroy Merlin is the largest and one of the most successful DIY retailers in Spain and it dominates in-store. Online - as a distribution channel - has seen substantial growth during 2020, accelerating development by several years. Those that can ramp up their online model will be able to benefit from the permanent changes in consumer behaviour, moving forward.”– Utku Tansel, European Retail Analyst
• DIY Retailing - Italy  
  DIY Retailing - Italy

  

  “The COVID-19 pandemic has served to accelerate the process of structural change in the Italian DIY retailing sector. We’ve seen substantial growth in online sales, although not as much as in some non-essential retail sectors, due to the fact that DIY retailers were classed as essential during lockdown and were able to keep their stores open, albeit with some restrictions on what they could sell. We see the Italian DIY store of the future being smaller and performing a much more experiential role. We also expect an increase in the number of city centre stores as retailers look to move closer to their customers.”– Michael Oliver, Retail Analyst
• DIY Retailing - France  
  DIY Retailing - France

  

  “The French DIY market experienced a pivotal year in 2020, with the various confinements accelerating existing trends, which offer many long-term growth opportunities for retailers of DIY and home improvement products. Online sales have grown significantly, especially at the store-based specialists, and many new customers have been recruited, particularly younger ones, with enthusiasm and confidence. A growing tendency to shop more locally is leading to the development of newer formats that can flex according to local needs. There has been further consolidation with the acquisition of pureplayer bricoprive.com by the business behind Bricomarché and Bricocash, and we would not be surprised to see further moves from retailers as they seek tov to enhance their now crucial omni-channel capabilities”– Natalie Macmillan, Senior European Retail Analyst
• DIY Retailing - Europe  
  DIY Retailing - Europe

  

  “The DIY markets across the leading European countries vary a great deal, due in part to differences in home ownership levels and the development of housing prices. As a result of the home confinement for much of the year because of the pandemic, the home goods category has been one of very few areas to see a strong performance thanks to the boom in teleworking and mobility restrictions. However, specialists have underperformed spending in the category as a whole. Online has recorded substantial growth during 2020, accelerating development by several years and those retailers that are quickest to respond to the changes and develop their online capabilities are the most likely to succeed.”– Utku Tansel, European Retail Analyst