UK Retail Briefing - January 2021

ANALYST COMMENT – CHRISTMAS TRADING 2020
Tougher comparatives for 2020
Christmas trading held up
Timing of Black Friday key
Online continued its surge
Retail adaptations helped drive sales
UK RETAIL SALES
Key points
Retail sales
Figure 1: Retail sales trends, January 2019 – November 2020
BRC vs ONS
Figure 2: UK retail sales y/y growth, BRC vs ONS, January 2018 – December 2020
Inflation
Figure 3: Annual % change in the consumer price index for selected product groups, January 2019 – December 2020
Inflation and wages
Figure 4: Real wages growth: Wages growth vs inflation, January 2016 – December 2020
Consumer confidence
Figure 5: Consumer confidence, January 2021
Looking forward
SECTOR FOCUS – ONLINE RETAILING
December sees online grow 46%
Figure 6: All online retail sales (exc fuel), 2019-2020
Household goods sales increase over festive period
Figure 7: % Change in selected online categories,  2019-2020
Second national lockdown encouraged more online shopping
Figure 8: Changes in consumer behaviours due to COVID-19, 8th January 2021 - 13th January 2021
LAUNCH ACTIVITY AND INNOVATIONS
UK: Central England Co-op launches refill trial at Lichfield store
UK: Boux Avenue reveals new sportswear collection
UK: Hamleys launches on eBay to boost online presence
HEADLINES FOR THE MONTH
Grocers
Clothing retailing
Multi-sector retailing
Electrical retailing
Carpet retailing
Online
Book and stationery retailing
Pets and pet products retailing
Jewellers
NEWS ANALYSIS – FOOD AND DRINK
 GROCERS
UK: Aldi
...reports strong Christmas trading instore and online
...set to roll out click-and-collect service to over 200 stores for Christmas
UK: Asda pilots vegan butchers counter ahead of Veganuary
UK: Lidl customers to get £10 discount for shopping bills over £40
UK: Morrisons
...rolls-out vaccine drive-through in 50 car parks
...teams up with Deliveroo to deliver Christmas essentials
...sees boost in Christmas sales as customers shopped early
UK: Sainsbury’s
...warns of food shortages as France bans freight from UK
...to double Christmas workers to 12,000 to cope with online demand
...sees Christmas sales increase 9.3%
UK: Tesco
...prepares for a no-deal Brexit as it warns of rising food prices and shortages
...rolls out limits on essential household items ahead of Christmas
...former Tesco chief executive to be knighted in recognition for efforts during the pandemic
UK: Waitrose extends bookable shopping service to 110 stores
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
 CLOTHING RETAILING
UK: Arcadia
...administrators look for offers for Topshop flagship
...Frasers Group owner confirms interest in Arcadia brands
...Arcadia subsidiary Evans rescued out of administration by Australian retail group
UK: French Connection receives funding for US business
UK: Gap to permanently close Oxford Street store
UK: Joules sees store sales drop 58% amidst tighter COVID-19 restrictions
UK: Matalan HQ sold for £25m to founder
UK: Moss Bros CVA proposals approved but no details yet on jobs impacted
UK: Next sales ‘much better’ than expected after strong Christmas trading
UK: Primark
...warns of £220 million loss due to Tier 4 restrictions
...owner reportedly interested in making Arcadia offer
NEWS ANALYSIS – MIXED GOODS
 MULTI-SECTOR RETAILING
UK: B&M revenues up 22% in Q3 and rewards bonuses to colleagues
UK: Frasers Group
...withdraws profit guidance as London goes into Tier 4
...half-year profits rise 18% thanks to post-lockdown demand
...confirms it will not make Mulberry offer
...Flannels to open 15 new stores in the coming five years along with first beauty hall
UK: M&S
...reports a mixed set of Christmas trading figures
...rolls out instant payment solution to 200 stores
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: Topps Tiles in a ‘fundamentally stronger’ position compared with first lockdown
UK: Travis Perkins sales up 8.6% in October thanks to DIY demand
 ELECTRICAL RETAILING
UK: Dixons Carphone sees 17% jump in sales and thanks the ‘grit and skill’ of employees
 CARPET RETAILING
UK: Tapi Carpets sales up 30% as it continues to grow its store portfolio
 FURNITURE RETAILING
UK: DFS expects interim profits to meet upper end of forecast despite ‘extensive’ disruptions
NEWS ANALYSIS – ONLINE
UK: Made.com hands out shares in the company to staff following ‘extremely strong’ sales in 2020
UK: Matchesfashion reports £6m loss for 2019 due to increased investments in operation and technology
UK: Ocado increases profit outlook following 35% uplift in fourth quarter revenue
NEWS ANALYSIS – OTHER RETAIL
 HEALTH AND BEAUTY RETAILING
UK: Boots owner sells majority of wholesale arm to focus on retail business
 BOOK AND STATIONERY RETAILING
UK: Paperchase on the brink of collapse
 SPORTS AND LEISURE GOODS RETAILING
UK: JD Sports
...buys independent menswear Wellgosh
...buys US footwear retailer Shoe Palace
UK: Pure Electric starts European expansion in France and Spain
 JEWELLERS
UK: Watches of Switzerland increase full-year revenue outlook following ‘strong trading’
 PETS AND PET PRODUCTS RETAILING
UK: Pets at Home increases profit guidance following ‘strong sales momentum’
NEWS – ECONOMY
UK: Retail sales grow 7.6% in November
UK: London to be put under tier three restriction this week
UK: London moves into Tier 4 and non-essential shops close less than two weeks before Christmas