November UK Retail Briefing  

"For the third successive year, UK retail braces itself for an ‘unprecedented’ final two months of trade, although for differing reasons to 2020 and 2021. The cost of living crisis is biting hard and half of consumers are planning to cut back this festive period. How deep this cut is will depend on the willingness of shoppers to throw-off the economic and political backdrop, and how well the retail sector can meet the needs for value and inspiration that are demanded."

– Nick Carroll, Category Director – Retail Insights

Seasonal Shopping (Spring/Summer) - UK  

“Spring/summer 2022 celebrations were overshadowed by the cost of living crisis, despite all events being celebrated free of restrictions for the first time since 2019. Pressure on finances will continue into 2023 and retailers will need to invest into smaller ticket gifting options and look for opportunities to help consumers celebrate events at home to keep costs down.”

– Emily Viberg, Retail Analyst

This Report looks at the following areas:

• European Retail Handbook  
  European Retail Handbook

  

  In 2021, the combined value of retail sales for the 30 major economies in Europe exceeded €4,028 billion. Germany remains the largest retail market in 2021, followed by the UK and France. When it comes to retail sales per capita, however, Switzerland continues to lead, followed by Norway and Belgium. In recent times retail sales performance has followed a similar trajectory across most markets with the 2020 COVID-induced slump, particularly in retailers' sales in a number of non-food sectors, followed by recovery in 2021 as restrictions eased and stores reopened. However, 2022 has presented widespread challenges in the face of the cost of living crisis.
• October UK Retail Briefing  
  October UK Retail Briefing

  

  "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."
• October European Retail Briefing  
  October European Retail Briefing

  

  "While the cost of living crisis will lead some consumers to prioritise price over the environment, we have already seen a big shift in the way people consume fashion as a result of COVID-19 and lifestyle changes. As consumers look to navigate inflationary pressures, they are looking to save money by rewearing older items, focusing on purchasing versatile pieces that will last and repairing and upcycling. A trend for vintage fashion is also helping to drive interest in the second-hand and resale markets."
• Kitchens and Kitchen Furniture - UK  
  Kitchens and Kitchen Furniture - UK

  

  “The cost of living crisis facing many consumers is expected to bring about a further set of challenges to a kitchen market only recently recovered from the pandemic. In particular, a focus on value from buyers can be expected. Adding further to pressures for manufacturers and retailers, online is expected to grow further in popularity adding further to pressures on those in the market.”
• September European Retail Briefing  
  September European Retail Briefing

  

  "While luxury brands are in a good position to market themselves as the sustainable alternative to high-street retailers due to their investment in sustainable production methods and the typically higher quality and durability of their products meaning they will last longer and reduce overconsumption, only 9% of consumers chose to define luxury by sustainability, according to Consumer Attitudes towards Luxury – UK, 2022. This signals a need for brands to be clearer about their sustainability initiatives in marketing and communications."
• Return Process in Online Shopping - US  
  Return Process in Online Shopping - US

  

  “Surging ecommerce demand has fueled record volumes of online returns, contributing to a growing challenge for retailers. Returns are an essential part of the online shopping journey, and the bar has been set with free returns. Retailers must manage returns by improving the online shopping journey, adding flexibility and investing in processes that drive efficiency and boost customer loyalty."
• September UK Retail Briefing  
  September UK Retail Briefing

  

  "Consumers are increasingly comfortable shopping online for jewellery and watches — more so since the pandemic — and are much more likely to make high-ticket purchases online than five years ago, despite the reopening of stores. Leading players in the market such as Bulgari, Tiffany & Co and Swarovski are expanding their e-commerce chains to suit this shift in shopping behaviour. As augmented reality (AR) and virtual reality (VR) become more widely used, consumers can be confident in their online purchases regardless of the value."
• Online Retailing - Spain  
  Online Retailing - Spain

  

  "The lifting of COVID-19 restrictions and more people returning to in-store shopping has dented ecommerce growth, but online purchasing still remains above pre-pandemic level and the sector is still outperforming the Spanish retail market as a whole. It is forecast to continue to do so over the coming years, as the online habit sticks, fuelled largely by the wider range of brands online than when shopping in-store."
• Online Retailing - Italy  
  Online Retailing - Italy

  

  "The online retailing market surprised many people in 2021 by continuing to record strong growth even after opening restrictions on stores were removed. This growth was driven mainly by higher spending and came despite our consumer research for this report showing many sectors seeing a decline in purchasing penetration compared to the previous year. But 2022 is going to see a slowdown, not exclusive to online retailing but something which will affect many sectors of retail, due to the cost of living crisis. With their lower cost bases, this might be easier for online-only retailers to weather, so it is up to omnichannel retailers to leverage their store estates to deliver superior levels of service and features to their customers in order to retain them for the long term."
• Online Retailing - France  
  Online Retailing - France

  

  "The last couple of years have seen the already well-developed French e-commerce market evolve further, with the expansion of marketplaces, growing share of mobile commerce and the development of rapid delivery and new services all driving growth. Amazon is extending its lead, but it faces significant challenges in France and is considerably less popular than in most other countries. As conditions return to a post-pandemic normality, those online retailers that responded well to the lockdown challenges are in a good position to recover and retain many of their new online customers"
• August UK Retail Briefing  
  August UK Retail Briefing

  

  "Over half (51%) of shoppers use a smartphone to buy fashion online, with usage rising among all age groups in the last two years, becoming the favoured method of buying online among Gen Zs and Millennials. These young generations are also more likely to shop via a retailer/brand’s app than a website. While Primark still does not have a fully transactional website, it has introduced click-and-collect from a selection of its stores from June 2022."