July European Retail Briefing  

"COVID-19 has acted to accelerate the trend towards more sustainable demands. DIY specialists can develop in-store exchanges, with old furniture and home goods traded for in-store credit. This also offers an opportunity for in-house repairs, before selling second-hand renovated products in-store; thereby, not only creating a new income stream, but also helping less affluent consumers out in the process, particularly important with the polarisation of demand in recent years."

July UK Retail Briefing  

"The main story over the coming year in furniture, as with wider retail, is of mounting uncertainty, with a near-perfect storm of inflation, supply chain disruption and the ongoing conflict in Ukraine. These pressures have already hit consumers, limiting expenditure and exacerbating already polarised demand, with this expected to continue in the coming years. To combat this, much of the emphasis will fall on retailers and what they can do to help consumers navigate these uncertainties moving forward."

• Furniture Retailing - UK  
  Furniture Retailing - UK

  

  “The longer-lasting ramifications of the pandemic are growing apparent, both in how consumers shop for furniture, and in the reassessment of priorities within the marketplace. However, after two years of impressive resilience, furniture sales are set to fall in the coming year as they face the brunt of inflation, supply chain disruption and the ongoing conflict in Ukraine.”
• 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. DIY has been one of the more resilient retail sectors during the pandemic. In 2021, specialists’ sales continued to increase, recording 3.9% growth across the five leading economies of Europe, with sector sales over €3.3 billion larger than in 2020. Going forwards, we expect cost of living concerns to force some consumers to hold back on home improvements. The most successful retailers will be those that ensure they stay in tune with what consumers want, especially when it comes to small-format DIY stores, digitisation, sustainability, faster delivery, and personalised expert advice.”– Utku Tansel, European Retail Analyst
• DIY Retailing - France  
  DIY Retailing - France

  

  “The French DIY market has seen two exceptional years of growth as a result of the COVID-19 pandemic and is well placed to capitalise on the ongoing focus amongst consumers on their home environment. Although we expect the cost of living crisis to hold back growth in 2022, there are many opportunities for retailers that are prepared to innovate and think outside the box. Retailers should look to build relationships with new DIYers, who are enthusiastic but lack skills, with services that can help DIWM (do-it-with-me). Rising energy prices and government support for energy-efficient home improvements, will rouse interest in ways to save energy and make running a home more efficient, while concerns about sustainability will filter through into buying decisions in many categories. Some retailers are developing platforms for customers to find appropriate experts and tradespeople, using trust and loyalty to their brand to give people confidence to take on projects. Future success may require a hybrid model, where professional services are combined with selling DIY products and teaching customers how to use them”– Natalie Macmillan, Senior European Retail Analyst, June 2022
• DIY Retailing - Italy  
  DIY Retailing - Italy

  

  “With a gradual trend of decline in the proportion of Italians shopping at DIY retailers, store operators are increasingly having to look for new sources of revenue, which is resulting in a high level of innovation and experimentation in the market. While in the short-term the cost of living crisis is going to drive demand for consumers to do home improvement tasks themselves, in the longer term we feel there are further opportunities to be had in the ‘do it for me’ segment, ranging from smaller tasks right up to larger refurbishment projects that would normally be taken on by small builders.”– Michael Oliver – Senior Retail Analyst, May 2022
• DIY Retailing - Spain  
  DIY Retailing - Spain

  

  “Spain is facing a growing cost of living crisis and consumer enthusiasm for DIY and home improvements has cooled since the lifting of COVID-19 restrictions. Sector specialists’ sales growth is expected to slow in 2022. Price will be uppermost in the minds of those shoppers feeling the financial squeeze and DIY retailers will need to reinforce their value credentials, while at the same time paying attention to consumers’ increased sustainability concerns and demand for faster turnaround times for DIY product deliveries and remote guidance for DIY tasks.”– Stephen Mayles, Retail Analyst, May 2022
• Footwear Retailing - UK  
  Footwear Retailing - UK

  

  “The footwear market has faced pent-up demand, as consumer routines become normalised and the high street reopens. Value for money will be a key focus for consumers as the cost-of-living squeeze begins to take hold; big-name brands will need to further prove durability and quality as many consumers look to trade down, coupled with an increase in clothing retailers bolstering their footwear offerings to compete with specialist stores. Sustainability also remains a driving force, with consumers looking to brands to lead the way when it comes to sustainable choices.”
• Winter Holiday Shopping - US  
  Winter Holiday Shopping - US

  

  “Value-seeking behaviors will predominate in the 2022 winter holiday season, as inflation leads consumers to prioritize lower prices and other forms of value. The season will continue to stretch earlier and longer as consumers embrace new habits and a planned approach to their shopping. In spite of challenges, consumers are optimistic about the holidays, and a robust return to holiday gatherings will add levity to the season.”– Brittany Steiger, Senior Analyst, Retail & eCommerce
• June European Retail Briefing  
  June European Retail Briefing

  

  “Mintel’s consumer research confirms that thanks to the pandemic there is now significant confidence among many European consumers to embark on DIY and home improvement tasks, whether that is upcycling items, doing home improvements or repairs. This has led to some attitude shifts when purchasing DIY goods. As such, some 41% - 58% of European consumers across the five countries say that they now would be more confident in doing home improvements themselves than they were before the outbreak."- Emily Viberg, Retail Analyst
• June UK Retail Briefing  
  June UK Retail Briefing

  

  "A combination of inflationary pressures has seen households warned to expect the worst hit to real incomes since comparable records began 30 years ago, with further price hikes expected when the energy cap is next revised in October 2022. Significantly, these pressures will not affect all households equally, with lower-income consumers set to disproportionately suffer, further exacerbating the polarisation of demand seen across home retail since March 2020." - Stephen Mayles, Research Analyst
• Sports Goods Retailing - Spain  
  Sports Goods Retailing - Spain

  

  “The Spanish sports retail market recovered in 2021 following the COVID-19 pandemic-induced slump in 2020, buoyed by the lifting of restrictions, a rebound in spending and popularity of athleisure. However, with inflation spiralling and the cost of living crisis squeezing discretionary spending the sector needs to brace itself for a difficult year ahead. At the same time, brands need to be focused on meeting buyers’ demands for more sustainable sportswear, sports goods tailored to individual needs and technology that makes it easier to shop online if they want to attract the spend of consumers.”
• Sports Goods Retailing - France  
  Sports Goods Retailing - France

  

  “The interest in wellness that has emerged from the pandemic has had a positive effect on sports goods retailers in France, but the sector is a discretionary one and the cost of living crisis has the potential to hold back sales. There is a growing interest in how retailers are addressing sustainability issues and there will be an increased need for transparency around how products are made and carbon footprints. Other initiatives in areas such as second-hand, repairs and rentals of sport equipment not only support the circular economy, but can also help appeal to consumers that are being particularly hard hit by rising prices”– Natalie Macmillan, Senior European Retail Analyst, May 2022