Description
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.
This month’s UK Retail Briefing includes:
- Analyst Comment – Furniture spending fragments with Covid-19 disruption
- An overview of the latest UK Retail sales
- Sector focus – Household Goods retailing
- Highlights of the latest UK Retail trend observations.
- Monthly headlines and retail news across the UK
Table of Contents
-
Analyst Comment – Furniture Spending Fragments with COVID disruption
- Store closures see specialists lose out in-store
- The redirection of demand online drives pure player’s sales
-
UK Retail Sales
- Key points
- Retail sales
- Figure 1: Retail sales trends, January 2019-July 2021
- BRC vs ONS
- Figure 2: UK retail sales y/y growth, BRC vs ONS, January 2018 –July 2021
- Inflation
- Figure 3: Annual % change in the consumer price index for selected product groups, January 2019- July 2021
- Inflation and wages
- Figure 4: Real wages growth: Wages growth vs inflation, January 2016 –July 2021
- Looking forward
-
Sector Focus – Household Goods
- The sector – what’s included
- The sector in context
- Figure 5: Major household goods categories, share of sales, 2020
- Figure 6: Spending on household goods products, 2014-2020
-
- Figure 7: Household goods sectors year on year growth in sales, by quarter, Q1 2018-Q1 2021
- Figure 8: Changing consumer behaviour due to COVID-19, 9th August – 17th August 2021
-
Launch Activity and Innovations
- UK: Morrisons pilot checkout-less store technology at Bradford HQ
- UK: Selfridges to sell pre-loved bridal wear at wedding pop-up
- UK: Net-A-Porter and Mr Porter launch new collection with Watchfinder
-
Headlines for the Month
- Co-ops
- Grocers
- Other food and drink specialists
- Clothing retailing
- Footwear retailing
- Multi-sector retailing
- Department stores
- DIY retailing
- Music and video goods retailing
- Online
- Toys and games retailing
-
News Analysis – Food and Drink
- Co-ops
- UK: Central England Co-op launch one-hour delivery services to 100 stores
- Grocers
- UK: Aldi
- …donate 1 million meals to charities over summer holidays
- …trial fully recyclable packaging for its sandwiches
- UK: Iceland recruits 2,000 staff due to shortages
- UK: Leading supermarkets warn of trade disruptions in Northern Ireland due to Brexit protocol
- UK: Lidl
- …pledge to increase sales for healthy products
- …roll out self-scan app ‘Lidl Go’
- UK: Morrisons
- …Fortress ups bid to £6.7 billion for Morrisons
- …Morrisons expect counter bid from US private equity firm CD&R
- Other food and drink specialists
- UK: Hotel Chocolat sales up 21% as it renegotiates rent for its UK stores
-
News Analysis – Clothing and Footwear
- Clothing retailing
- UK: Arcadia Group companies to be liquidated
- UK: Burberry sees comparable store sales rebound in Q1
- UK: Forever New opens first UK store
- UK: Joules sales up 4.3% as growth from online offset store closures
- UK: LK Bennett to roll out rental service
- UK: Mamas & Papas to double overseas sales next year as it unveils expansion plans
- UK: Matalan latest retailer to join government Kickstart scheme for young people
- UK: Mulberry sales up 4% thanks to digital performance
- UK: New Look revenues down 40.1% due to store closures
- UK: Next ups profit guidance as sales grow 18.6%
- UK: Philipp Plein to accept payment in cryptocurrency
- UK: Quiz quarterly sales jump 311.9% thanks to easing of lockdown restrictions
- UK: Sweaty Betty bought by US-based investor firm for £300m
- UK: The Restory to offer repairs for clothing
- UK: Victoria’s Secret set to trade separately from L Brands from August 2021
- Footwear retailing
- UK: Dr Martens sales up 52% following ‘encouraging’ recovery from reopened stores
- UK: Public Desire to launch into womenswear with fast fashion brand Kaiia
- UK: Skechers sales up 127.3% as consumers returned to a ‘more normal lifestyle’
-
News Analysis – Mixed Goods
- Multi-sector retailing
- UK: Marks & Spencer
- …introduce same-day delivery for fashion purchases
- …launches first-ever children’s book on sustainability
- …warns Northern Ireland could see higher prices
- UK: Mike Ashley to step down from Frasers Group as profits fall 95.1%
- UK: Mothercare losses widen to £21.5 million due to temporary store closures
- UK: Poundland
- …Q3 l-f-l up 21% as it opens 22 new stores
- …launches frozen and chilled ranges to 40 more stores
- …Pepco to create 13,000 jobs in Europe over the next three years
- Department stores
- UK: Harrods reveals new beauty and salon offering
- UK: Harvey Nichols partners with technology firm Reflaunt for resale service
- UK: John Lewis Partnership to cut 1,000 jobs
- UK: Liberty London impacted by lockdowns
- UK: Selfridges
- …auction begins with bids expecting to reach £4bn
- …celebrates Birmingham’s diverse community with new store facade
-
News Analysis – Household Goods
- DIY retailing
- UK: Homebase to create 300 new jobs for young people
- UK: Wickes sales grow 33% driven by DIY
- Furniture retailing
- UK: Dreams reveals new concept for Feather & Black
- Music and video goods retailing
- UK: HMV to open 10 new stores
- Homewares retailing
- UK: Dunelm sees sales rise 26% thanks to homewares
-
News Analysis – Online
- UK: Amazon rival Imagr opens automated pop-up store
- UK: Asos
- …sales up 21% driven by UK
- …and Nordstrom team up for joint venture
- UK: Bloom & Wild acquires French Bergamotte
- UK: Eve Sleep revenues grow 13% thanks to rise in online shopping
- UK: Hurr partners with Depop ‘to power the circular economy’ with pre-rented collection
- UK: In The Style revenues soar 132%
- UK: Moonpig revenue grows 113% following its stock market debut
- UK: Music Magpie hails ‘landmark period’ as sales grow 3.8%
- UK: Sephora agrees to buy Feelunique for £132 million
- UK: Sosandar losses narrow as sales grow 5%
- UK: The Hut group acquires Cult Beauty for £275m
- UK: The Very Group moves clothing returns to its automated fulfilment centre
-
News Analysis – Other Retail
- Health and beauty retailing
- UK: Boots to sells plot of land for 622-home ‘model village’
- UK: Coty set to relaunch Kylie Cosmetics and reveals UK retail partners
- UK: Superdrug sales drop 15% despite remaining open during pandemic
- UK: The Fragrance Shop targets 20 new stores a year
- Sports and leisure goods retailing
- UK: NBA opens first UK store in Soho
- Jewellers
- UK: Watches of Switzerland hails strong growth as sales increase 101.9%
- Toys and games retailing
- UK: Games Workshop revenues rise 31% thanks to online sales
- UK: Hamleys opens first standalone store in Edinburgh
- UK: Hobbycraft l-f-l grow 15.3% as it plans more store openings
- Pets and pet products retailing
- UK: Love My Human reveals three-storey luxury townhouse on King’s Road
- UK: Pets at Home
- …reports a strong start to its latest financial year
- …pilots recycling scheme
- Shopping centres
- UK: Tik Tok opens pop-up at Westfield London
-
News Analysis – Economy
- UK: BRC
- …retail sales grow 4.7% in July
- …sales grow 13.1% in June
- UK: UK Retail sales increase 9.3% in June
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