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  

"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
• Meal Planning and Preparation - Canada  
  Meal Planning and Preparation - Canada

  

  “Consumers are cooking more at home thanks to the pandemic and constantly up-ended routines are putting the logistics of meal planning and cooking to the test. Currently, a protective mindset drives Canadians to shop online more for groceries and make fewer micro-trips. Looking ahead, continued reliance on e-commerce and flexible working arrangements means that these ‘new’ grocery shopping habits will stick, meaning that meal-time shortcuts like home meal replacement (HMR) will need to evolve as these habits impact how and when these offerings are accessed. Planning ahead for grocery trips is more important than ever, opening the opportunity to integrate tools in this area with platforms that provide nutritional and wellness information. As pre-pandemic busy-ness will return, burnout will become the norm. Food-related companies can support the mental wellness of consumers by creating avenues to help consumers soak up the positive emotional aspects of cooking like stress relief or bonding with others.”– Carol Wong-Li, Associate Director Lifestyles & Leisure
• Footwear Retailing - Spain  
  Footwear Retailing - Spain

  

  “Spain is facing severe recession and consumers have a difficult and uncertain future. Unemployment, which was already high, is soaring, particularly amongst young people, impacting confidence and purchasing power. Footwear is in large part a discretionary spending area, and retailers have an uphill battle to regain ground lost as a result of the pandemic. As in all countries, the pandemic is shaking out weaker players and changing people’s priorities. Sports retailers, value-for-money retailers and those with a well-integrated online model are best positioned to prosper. Specialist footwear retailers need to reclaim the market share that they have ceded, whether to non-specialists or online-only retailers, by focusing on their expertise, customer service levels and the quality of their products.”– Utku Tansel, European Retail Analyst
• Footwear Retailing - France  
  Footwear Retailing - France

  

  “Footwear specialists will be among the hardest-hit sectors as consumer shopping behaviour has altered drastically to reflect changes in lifestyles during the COVID-19 lockdown. Mintel’s COVID-19 tracker in April 2021 found that 44% of French adults were buying less clothing and footwear compared to before the outbreak and 43% said that they would be uncomfortable trying on clothing/footwear in-store. Rising unemployment and financial difficulties will impact footwear demand, while the move towards more ethical patterns of consumption (renting, buying second hand) will erode the space that old-school, store-based retailers occupied. The number of these retailers is dwindling and the sports sector is growing market share, with direct-to-consumer sales increasingly important.”– Natalie Macmillan, Senior European Retail Analyst
• Footwear Retailing - Europe  
  Footwear Retailing - Europe

  

  “Footwear retailing is among the sectors being hit the hardest by the ongoing COVID-19 pandemic across Europe, and we expect the leading five economies to have experienced drops in retail specialists’ sales of between substantial 21% and 32% in 2020. Specialists continue to lose share of spending in the category due to strong competition from online pureplayers, sport shops and clothing retailers. However, we continue to see changes in consumer behaviour due to the pandemic, creating opportunities for retailers to establish a stronger online presence to capitalise on the substantial rise in demand via that channel.”– Utku Tansel, European Retail Analyst
• European Retail Briefing  
  European Retail Briefing

  

  "Online only retailers have undoubtedly hugely benefited from the closure of non-essential retail for prolonged periods and the shift to online shopping as a result of COVID-19. Nevertheless, the strong growth reported by ASOS during the period is also due to the company’s ability to nimbly respond to the changes in shopping behaviour seen during the pandemic. The retailer has remained flexible in responding to demands for “lockdown” products, as sales of formal and outfits for social events dried up, with shoppers instead turning to 'activewear' and 'casualwear'."
• UK Retail Briefing - UK  
  UK Retail Briefing - UK

  

  "In March, all retail sales grew 9.3%. March marks the one-year anniversary of the first lockdown in the UK and is the first time the retail sector has faced COVID-19 impacted comparative figures. In March 2020 retail sales saw a 2.8% decline as shoppers stockpiled ahead of an impending lockdown. With stores still closed in March 2021, online was again the big winner. However, growth slowed across all online categories, with imminent store re-openings playing a part in likely delaying some of this demand into April. We can expect retail sales to see an uptick as people return to stores and the hospitality sector reopens."
• Seasonal Shopping (Autumn/Winter) - UK  
  Seasonal Shopping (Autumn/Winter) - UK

  

  “The pandemic did not deter celebrations for the autumn/winter seasonal events with spending resilient across all events – albeit significantly down on the year before. Uncertainty ahead of a new term eclipsed Back-to-School spending with some parents focusing on supporting remote learning. Despite Halloween trick-or-treating being banned, shoppers found ways to celebrate with confectionery and fancy dress topping the shopping list while Bonfire Night spending held up well as consumers took the opportunity to spend time with family and friends in the household. Valentine’s Day celebrations moved indoors as people found new ways to celebrate the day with loved ones.”– Emily Viberg, Retail Analyst