Description
“2021 was one where the pandemic continued to loom large, although in certain areas the landscape of post-pandemic retail became a little clearer. Online purchasing remained heightened and it is clear that COVID-19 will indeed mark a step-change in engagement in the channel. Mintel’s COVID-19 Tracker has on average recorded 44% of consumers shopping more online in 2021 than pre-pandemic, while so far online has accounted for 29% of total sales in the sector – a little ahead of the level (28%) seen in 2020.”
– Emily Viberg, Retail Analyst
This month’s UK Retail briefing includes:
- Analyst comment: A better but still pandemic-led year
- An overview of the latest UK Retail sales.
- Sector Focus – Online Retailing – UK.
- Highlights of the latest UK Retail trend observations
- Monthly UK retail news headlines and analysis
Table of Contents
-
Analyst Comment: A better but still pandemic-led year
- Shoots of recovery in the store-based sector
- We are still in the woods but the trees are thinning
-
UK Retail Sales
- Key points
- Retail sales
- Figure 1: Retail sales trends January 2019-September 2021
- BRC vs ONS
- Figure 2: UK retail sales y/y growth, BRC vs ONS, January 2018- August 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 –August 2021
- Looking forward
-
Sector Focus- Online retailing
- What we have seen
- November online sales dip
- Figure 5: All online retail sales (exc fuel), 2019-2021
- Key categories compete with store-based retail
- Figure 6: All online retail sales, by category, 2019-2021
- New restrictions will force people to return to online shopping
- Figure 7: Attitudes around online retail; flexibility and usage, 2021
-
Launch Activity and Innovations
- UK: Asda teams up with Gucci for a curated edit of preloved items
- UK: M&S trials first clothing rental service
- UK: John Lewis launches subscription service for kids’ bikes
-
Headlines for the Month
- Convenience stores
- Grocers
- Other food specialists
- Clothing retailing
- Footwear retailing
- Multi-sector retailing
- Department stores
- Furniture retailing
- Online
- Health & beauty retailing
- Book & stationery retailing
- Sports & leisure goods retailing
- Jewellers
- Pets & pet products retailing
- Shopping centres
-
News Analysis – Food and Drink
- Co-ops
- UK: Co-op to remove all plastic from its Christmas gifting range
- Convenience stores
- UK: McColl’s
- …to expand Morrisons Daily stores to 450
- …revenues fall 11.2% amid ‘tough year’
- Grocers
- UK: Aldi
- …gives customers vouchers as it pilots deposit return scheme for bottles
- …launches Champagne Bar ahead of Christmas
- UK: Asda
- …l-f-l sales slip 0.7% as demand for online delivery ‘softened slightly’
- …pilots indoor map service for blind and partially-sighted shoppers
- …launches draft beer concept in stores
- …adds eight more New look concessions in stores
- …George at Asda sales grow 1.2% post-lockdown
- UK: Iceland offers customers ‘Turkey Insurance’ ahead of Christmas
- UK: Lidl
- …considers retail parks as it looks for larger stores
- …sales up 12% and reveals target of 1,100 store openings by end of 2025
- UK: Morrisons rolls out Whinny’s Kitchen in stores as part of its Growing British Brands initiative
- UK: Sainsbury’s
- …and Waitrose team up with designer Anya Hindmarch for new shopping bag
- …SmartShop Pick & Go format
- UK: Tesco
- …to give Black Friday deals only to Clubcard holders
- …unveils new refillable cleaning spray products
- Other food specialists
- UK: Holland & Barrett acquires beauty business Blow
-
News Analysis – Clothing and Footwear
- Clothing retailing
- UK: Burberry sales rebound 38%
- UK: Gap lowers full-year outlook as net sales fall 10% in Q3
- UK: Lee to launch kidswear range
- UK: Mulberry back in profit thanks to growth in sales across all of its markets
- UK: Primark expects sales to be ‘significantly better’ despite the rise in COVID-19 cases
- UK: Quiz revenues grow 109% as demand for occasionwear returns
- UK: Ted Baker grows revenues by 17.6% thanks to turnaround plan
- UK: Thomas Pink relaunches website following split from LVMH
- Footwear retailing
- UK: Hotter hails strong Black Friday with sales up 10%
-
News Analysis – Mixed Goods
- Multi-sector retailing
- UK: Fraser Group pre-tax profit up 75.3% driven by Sports Direct
- UK: B&M revenues up 1.2% but warns of challenges in the second half of its fiscal year
- UK: Halfords
- …ups earnings forecast to £90m
- …buys automotive service chain National for £62 million
- UK: M&S
- …to launch FAO Schwarz shop-in-shops in 20 stores
- …sales up 5% driven by online clothing and home categories
- …to sell lingerie brand Wonderbra online
- UK: Mothercare revenue down 6%
- UK: Poundland launches first national TV ad
- Department stores
- UK: Fenwick launches first homewares range
- UK: Harrods
- …host exclusive pop-up with skate brand Palace
- …offers flexible payment options in-store and online
- …first Scottish H Beauty store in Edinburgh
- UK: House of Fraser to close Oxford Street flagship as landlord serves notice
- UK: John Lewis
- …and ITV team up for Fortnite experience
- …£1 million sustainable innovation fund
- UK: Selfridges owners rumoured to sell to Thailand’s Central Group
-
News Analysis – Household Goods
- DIY retailing
- UK: Kingfisher sees sales dip 3.2% and enters final quarter ‘with positive momentum’
- UK: Wickes ups profit expectations following positive trading
- Furniture retailing
- UK: IKEA launches ‘Green Friday’ discount for its buy-back furniture
- UK: Jysk to train 23,000 staff on mattresses
-
News Analysis – Online
- UK: AO lowers profit outlook and warns of ‘significantly softer trading’ for Black Friday
- UK: Asos warns of supply chain issues ahead of Christmas
- UK: Dyson launches virtual reality store
- UK: Farfetch acquires resale platform Luxclusif
- UK: Gear4Music
- …completes acquisition of AV Online
- …revenues down 8% as Brexit related supply chain issues persist
- UK: Getir takes over rival Weezy
- UK: Gopuff launches nationwide
- UK: Harley Davidson opens online store
- UK: Hurr Collective launches pop-up for one-night only rentals
- UK: Moonpig revenues slip 15.1%
- UK: Mytheresa Group raises outlook as sales grow 24.9%
- UK: Naked Wines revenues up 6% as it prepares for ‘largest holiday season’ to date
- UK: PrettyLittleThing
- …launches gender inclusive Christmas collection
- …unveils NFT collection
- UK: Sosandar revenues up 184% and look forward to a ‘successful’ second-half
- UK: Thrift+ launch first retail second-hand partner store online
- UK: Very Group sales grows 3.9% thanks to clothing
- UK: Victoria Plum reveals first kitchen range as part of ongoing growth strategy
-
News Analysis – Other Retail
- Health & beauty retailing
- UK: Freshly Cosmetics to launch first standalone store
- UK: Lush to withdraw from social media from all of its 48 markets
- UK: Superdrug launches super-fast 2-hour delivery service in 30 stores
- UK: Walgreen Alliance rumoured to sell Boots for £5bn
- Book and stationery retailing
- UK: The Works sales up 14.5% buoyed by families taking ‘staycations’ amid pandemic
- UK: WHSmith to trial checkout-free travel store
- Sports and leisure goods retailing
- UK: Gymshark opens first physical store
- UK: JD Sports and Adidas team launch free beauty salon for one day only in Central London
- Jewellers
- UK: Beaverbrooks sales down 14% during centenary anniversary
- UK: Watches of Switzerland revenues rise 44.6% as it upgrades full-year outlook
- Garden centres
- UK: Dobbies encourages shoppers to reuse Christmas trees in new campaign
- Toys and games retailing
- UK: Menkind takes over Stocking Fillers and Hawkins Bazaar
- Pets and pet products retailing
- UK: Pets at Home sales up 18% thanks to growth in pet ownership during pandemic
- Shopping centres
- UK: ‘Produced in Kent’ store concept for Bluewater
- Economy
- UK: BRC sees sales grow 5% in November thanks to Black Friday
- UK: Retail sales up 0.7% in October
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