Description
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.
This month’s UK Retail Briefing includes:
- Analyst Comment – How Covid-19 has made consumers prioritise ethics
- An overview of the latest UK Retail sales
- Sector focus – Online retailing
- Highlights of the latest UK Retail trend observations.
- Monthly headlines and retail news across the UK
Table of Contents
-
Analyst Comment – How COVID-19 has made consumers prioritise ethics
-
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 – Online Retailing
- What we have seen
- Online sales growth slows down upon reopening of stores…
- Figure 5: Total non-store retail sales, January 2020-August 2021
- …but share of total retail sales still ahead of pre-pandemic levels
- Figure 6: Internet sales as a percentage of total retail sales, January 2020-August 2021
- Pandemic online shopping habits sticking in post-lockdown
- Figure 7: Consumers changing shopping habits due to COVID-19, 18th August – 27th August 2021
-
Launch Activity and Innovations
- UK: Majestic Wine rolls out new subscription service
- UK: Poundland expands online delivery service
- UK: Farfetch rolls out pre-order service in a bid to reduce fashion waste
-
Headlines for the Month
- Grocers
- Clothing retailing
- Multi-sector retailing
- Department stores
- DIY retailing
- Electrical retailing
- Homewares retailing
- Online
- Health and beauty retailing
- Books and stationery retailing
-
News Analysis – Food and Drink
- Co-ops
- UK: Co-op
- …expands electric shelf labels to 23 stores after successful trial
- …teams up with The Original Factory Shop for 30 concessions
- …unveils new climate change pledge
- …Central England Co-op teams up with Too Good To Go to tackle food waste
- Grocers
- UK: Anya Hindmarch reveals fruit and vegetable concept store
- UK: Asda
- …owner mulling the sale of EG Group for £10.8bn
- …owners to open 300 petrol stations after successful trial of Asda On The Move stores
- …changes slogan in new ad campaign
- …rewards young people for getting vaccine with £10 vouchers
- …to sell Missguided clothing in 100 stores
- …sales dip 0.7% in Q2
- UK: Lidl
- …launch Eco-labelling pilot in Scotland
- …to launch own-merchandise in store
- UK: Morrisons
- …accepts £7 billion takeover offer
- …refills water bottles at its petrol stations to reduce one-the-go plastic waste
- …pre-tax profits fall 37% due to COVID-19 costs
- UK: Tesco
- …rolls out soft plastic collection points to all larger stores
- …partnership with Olio stopped 5m meals going to waste
- UK: Waitrose
- …announces the largest vegan and vegetarian launch to date
- …launches new cocktail experience to its Wine Tasting at Home service
- Other food and drink specialists
- UK: Pret a Manger to focus on expanding outside London and big city centres
-
News Analysis – Clothing and Footwear
- Clothing retailing
- UK: Balmain teams up with Channel 4 for new short-form drama series
- UK: Bravissimo sales down 30% due to store closures
- UK: Little Mistress reveals permanent ‘Try and Buy’ selling space at its HQ
- UK: Mango reveals newly relocated flagship with click-and-collect area
- UK: Philipp Plein to accept payment in cryptocurrency
- UK: Primark reveals new store as an ‘important milestone’ to expansion plans in the US
- UK: Ralph Lauren partners with Zepeto to launch virtual fashion collection
- UK: Ted Baker sales up 50% after scaling back promotional activity
- UK: Urban Outfitters to withdraw from China
- UK: Vans to launch pop-up skate parks across London
- Footwear retailing
- UK: Deichmann set to expand presence in UK
- UK: Footwear brand Ego launches first clothing collection
- UK: Hotter Shoes sales jump 65% in July boosted by outdoor leisure and attractions in the UK
- UK: Schuh launches virtual sneaker hunt
-
News Analysis – Mixed Goods
- Multi-sector retailing
- UK: Halfords
- …unveils new concept store in Essex
- …sales grow 19%
- UK: M&S
- …sales up 29% thanks to core food and fashion categories
- …roll out more third-party brands online
- UK: Poundstretcher ‘bounced back’ after pre-tax profits reach £30m
- Department stores
- UK: Beales signs four-year licensing deal with NHS to open health village
- UK: Frasers Group
- …to launch Flannels in Scotland
- …open first fascias in Ireland
- UK: Harvey Nichols
- …launches kidswear resale service The Drop Off
- …partners with technology firm Reflaunt for resale service
- UK: Harrods replaces plastic bags with sustainably-sourced paper alternatives
- UK: John Lewis
- …adds clothing to its Anyday range
- …pop-up showroom for homewares range
- …launch sustainable mattresses
- …to offer ISAs to customers in a bid to diversify revenue streams outside retail
-
News Analysis – Household Goods
- DIY retailing
- UK: B&Q reveal new express store in North London
- UK: Screwfix expands rapid delivery service to more stores
- UK: Toolstation reveals new app
- Electrical retailing
- UK: Dixons Carphone
- …rolls out polystyrene recycling scheme
- …Currys PC World to allow customers to tailor mobile plans amid brand overhaul
- Furniture retailing
- UK: Benson for Beds to refresh website and invest in product innovation as sales bounce back
- UK: Cox & Cox Q2 sales grow 54%
- UK: IKEA
- …and M&S latest retailers to report shortages in supply chain
- …eyes former Topshop store on Oxford Street
- UK: Jysk outlines next phase of international expansion
- Homewares retailing
- UK: Dunelm
- …pilots take-back scheme for unwanted textile items
- …sales up 26% driven by ecommerce
-
News Analysis – Online
- UK: Amazon
- …sales rise 50% as it pays £492m in tax
- …create 2,500 new jobs in the UK in major global recruitment drive
- …to add own-label food items to grocery offer
- UK: Angling Direct sales up 54% in Q1 of 2021
- UK: AO launches health and beauty products online
- UK: Boohoo outlines plans to create 5,000 new jobs
- UK: Deliveroo revenue up 82% driven by high demand from consumers during the pandemic
- UK: Feelunique launches new and flexible subscription beauty box
- UK: Mr Porter to launch dedicated marketplace site for Super Mart
- UK: Perfume Direct aims for £10m in sales thanks to rise in online shopping
- UK: The Very Group prolongs next day delivery times thanks to new automated tech
- UK: TikTok and Shopify roll out in-app shopping pilot in the UK and Ireland
-
News Analysis – Other Retail
- Health and beauty retailing
- UK: Boots
- …teams up with Deliveroo to pilot delivery service
- …to open 30 new smaller beauty hall formats
- Books and stationery retailing
- UK: Clintons to sell a range of alcoholic drinks
- UK: WHSmith sees revenue fall 27% due to the pandemic
- Sports and leisure goods retailing
- UK: Asics revenue up 44% fuelled by product innovations
- Jewellers
- UK: Watches of Switzerland hails strong growth as sales increase 101.9%
- Garden Centres
- UK: Dobbies rolls out nationwide community garden competition
- Pets and pet products retailing
- UK: Jollyes set to accelerate growth plans and opens 20 stores
- Toy retailing
- UK: Hamleys relocates Liverpool One store to a new 3,000 sq ft space
- Shopping centres
- UK: Westfield announces global streaming event with Lady Gaga
-
News Analysis – Economy
- UK: BRC
- …retail sales up 3% in August
- …retail sales grow 4.7%
- UK: July retail sales up 3.7%
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