Retail Economics

What’s been happening in retail this week?   ·      Waitrose & Partners is investing over £1bn in its store portfolio over the next three years, with plans to open 100 new convenience stores and refurbish 150 existing locations. The investment will focus on enhancing service counters, expanding wine and alcohol selections, and increasing on-demand grocery options.   ·      Pets at Home unveiled its latest "store of the future" concept in Brentford, marking a £1m investment to expand and modernise the location. The new store features enhanced services, including a Nutrition Hub and interactive screens.   ·      Morrisons is scaling back self-service checkouts. Around 20 stores will see self-checkout terminals reduced in favour of manned tills.   ·      Holland & Barrett partnered with DNANUDGE to launch the world’s first express DNA test service in five UK stores, offering customers quick genetic insights for skincare and sleep improvement to receive personalised product recommendations tailored to their DNA.   ·      SportsShoes.com launched its first mobile shopping app as part of its digital growth strategy. The app offers personalised product suggestions and enhances the customer experience.   ·      Topps Tiles acquired the brand and selected assets of CTD Tiles out of administration for £9m, including 30 stores, selected stock, and intellectual property, saving 92 jobs. The acquisition strengthens Topps Tiles' position in the housebuilder market, with the acquired stores generating £20m in sales in the year to June.   ·      Hobbycraft is in advanced talks with investor Modella Capital over a potential sale. Modella, known for backing brands such as Paperchase and Ted Baker’s UK licensing partner, is negotiating with current owner Bridgepoint.   ·      Tesco appointed Becky Brock, former Costa Coffee global commercial, marketing, and innovation director, as its new customer and digital director. Brock will focus on loyalty, digital, and insight as the supermarket transitions to a more digitally enabled operating model.   ·      ASOS.com shareholders approved a new executive pay plan, replacing the long-term incentive scheme with a Value Creation Plan. It aims to reward senior leaders only if the share price exceeds £6.70.   ·      JD Sports Fashion reported a 2.4% increase in group like-for-like sales and an 8.3% rise in organic sales for the quarter ending 3 August. Growth was driven by strong US and European performances, while UK sales softened, declining by 0.8%. The retailer completed the acquisition of US brand Hibbett, adding significant scale to its operations.   This is just a selection of news this week. Sign up below for more insight ⬇️ https://lnkd.in/d-z25aM

A hybrid retail model blending stores and digital is essential to capture the spending of tomorrow’s consumers. Analysing the spending behaviour of shoppers under the age of 18 years old, children are predominantly shopping across all channels, with around a third favouring a balance between shopping online and in-store shopping equally. Retailers must create integrated shopping experiences, balancing the discovery of products online with the convenience of touch, try and collect in-store. But there are nuances across different demographics: ➡       There's a notable shift towards online as age increases, reflecting greater digital literacy, access to devices and independence. ➡       ‘Store-first’ consumers are skewed to younger children, preferring real life shopping experiences to digital. ➡       Online is more prevalent among the least affluent groups, leveraging the potential cost savings found on digital-only shopping platforms. ➡       More affluent families are likely to spend on areas that rely on a blend of in-store and online experiences, including shopping as part of a wider social outing across hospitality and leisure. Download the full Retail Economics-HyperJar Tomorrow's Consumer report below for free to explore shifts in children's spending, comparisons to parents, and how kids are managing their money: https://lnkd.in/eapi2Kqi Tricia Beaumont, Nicholas Found, Richard Lim, Nicola Longfield

Head over to your favourite podcast platform or click the link below to listen to this week's episode of the Retail Roundup Podcast! With fresh episodes every Monday at 6 am, the Retail Roundup Podcast is your go-to source for staying informed on the latest happenings in the retail world. Whether you're a seasoned professional or new to the industry, our podcast delivers essential insights and the most current retail news to keep you ahead of the curve. 🔗 Tune in now: https://lnkd.in/e8Urgs3g #RetailRoundup #RetailPodcast #IndustryInsights #StayInformed #MondayMotivation #RetailInsight #Podcast #BusinessPodcast #InsightOnTheGo #RetailEconomics #RetailUpdates

What’s been happening in retail this week?   ·      Card Factory partnered with Just Eat Takeaway.com to offer on-demand delivery of cards, gifts, and celebration essentials. The service is available at 19 stores across the UK, with plans to expand to 21 more later this year.   ·      Morrisons extended its Deliveroo partnership to include 500 Morrisons Daily convenience stores, offering over 2,500 products for rapid home delivery.   ·      Aldi UK is ending its click-and-collect service after four years. The discounter said the move will help it operate more efficiently and maintain its price advantage. This follows Aldi's previous decisions to scrap home delivery of alcohol, Specialbuys, and its grocery delivery partnership with Deliveroo.   ·      Tesco introduced digital product passports for its F&F clothing collection, providing customers with sourcing and sustainability information. The passports are part of Tesco’s response to upcoming regulations targeting greenwashing and unsustainable stock management.   ·      Amazon opened a £500m robotics fulfilment centre in Leeds, creating 2,000 jobs. The centre, featuring advanced technology and energy-efficient solar panels is Amazon's 31st in the UK.   ·      Amazon is set to trial Prime Air drone delivery services in the UK by the end of the year.   ·      SHEIN is exploring the opening of a warehouse in the UK, potentially within the Midlands’ logistics hub, ahead of its anticipated London Stock Exchange listing. The fast-fashion giant is considering sites between 300,000 and 600,000 sq ft, with plans to finalise a location by the end of the year.   ·      John Lewis & Partners is restructuring its store teams and ramping up tech adoption to enhance customer service. The changes, involving a multimillion-pound investment, include new digital headsets, mobile payments, and simplified processes. These initiatives aim to increase staff efficiency, despite the potential loss of 153 roles. ·      Asda co-owner Mohsin Issa attributed the grocer's 2.2% revenue drop and 5.3% decline in like-for-like sales in Q2 2024 to a "challenging retail environment”. Despite this, Asda reported a strong online performance and plans to boost customer satisfaction, product availability, and loyalty through its Asda Rewards scheme as part of its long-term growth strategy. ·      Mountain Warehouse returned to profit with a pre-tax gain of £26.2m for the year ending February 2024. The retailer achieved record sales and is eyeing expansion by potentially taking over former Carpetright stores, with plans to open up to 50 new stores in 2025.   This is just a selection of news this week. Sign up below for more insight ⬇️ https://lnkd.in/d-z25aM

Top 5 Reasons Retailers Leverage Technology In today's fast-paced retail landscape, technology is a game-changer. Discover how leading retailers are using technology to stay ahead of the curve. 📊 Forecasting Consumer Trends with Data Analytics: 57.0% of retailers invest in technology to forecast consumer trends using advanced data analytics. Understanding future demands is key to staying competitive. 💬 Enhancing Customer Engagement: 54.8% of retailers are enhancing customer engagement through digital platforms. Building strong relationships with customers drives loyalty and growth. ⚙️ Increasing Operational Efficiency: 50.5% of retailers are automating processes to boost operational efficiency. Streamlining operations is crucial for improving productivity and reducing costs. 🤝 Collaborating with Partners: 40.9% of retailers use technology to collaborate with partners, sharing data insights that enhance decision-making and strategy. 🔍 Enabling Real-Time Monitoring: 39.8% of retailers rely on technology for real-time monitoring of supply chain operations. This visibility ensures agility and resilience in today's dynamic environment. 📈 Ready to dive deeper? Download our Retail Resilience Report created in partnership with Barclays Corporate Banking, to gain deeper insights into how technology is shaping the future of retail. 🔗 https://lnkd.in/ecvFxYCr #RetailEconomics #DigitalTransformation #ECommerce

What happened to retail stocks last week? 📈 Leading Stocks: N Brown Group (13.0%) outperformed due to strong investor sentiment. The online clothing and footwear retailer has seen its share price surge by 73% in the last three months, supported by the success of its transformation plan, with profits returning in the year to March 2, following a loss a year ago. DFS (3.2%) stock also ticked up due to improved sentiment, with hopes that demand will be boosted by the improving outlook for consumers. The ambitions of the new government to build 1.5 million homes should also support performance. 📉 Trailing stocks: QUIZ Clothing (-19.7%) lost nearly a fifth of its share price value due to ongoing struggles within the business. The fashion retailer has been grappling with weak consumer demand and rising costs, which have weighed heavily on its profitability. Ocado Group (-5.0%) saw its stock fall back due to ongoing concerns about its business and profitability. Ocado's recent bond raise, aimed at extending the maturity of its debt, has added to worries about the company's financial health, leading to further downward pressure on the stock. 🔍 Sector insights: Overall, retail stocks* rose by 0.5% on the previous week. This compares with a c.0.2% decline in the FTSE All share index. *Defined by a weighted basket of 41 food and non-food retailers. #RetailStocks #MarketUpdate #Investment #StockPerformance

Cash is out among children according to our inaugural Retail Economics and HyperJar Tomorrow’s Consumer report. Our analysis – based on 8 million card transactions among UK children aged 6 to 17 and a survey of over 1,800 parents – uncovers a shift towards digital-only pocket money among children, as access, familiarity and the convenience of digital tools grows with age. Key currency preferences among children include: ·      Digital reigns as cash is out: Over half (55.4%) of parents prefer giving allowances digitally, showing a clear shift towards digital financial management for children. Across all age and affluence groups, cash-only allowances are minimal. ·      Age matters: As children grow older, the preference for digital-only methods increases, with 63.6% of parents of teenagers (aged 15-17) opting for digital solutions compared to 52.3% for younger kids (aged 6-8). ·      Affluence influence: Higher affluence levels correlate with a greater reliance on digital methods, with 65.5% of the most affluent families choosing digital-only compared to 49.6% of the least affluent. This reflects greater access to technology and financial tools among more affluent families.   Shifting behaviour underscores the need for retailers to leverage digital platforms to engage with young consumers as they become higher spenders with age, while tailoring strategies that adapt to demographics such as affluence. We’re thrilled to have collaborated with HyperJar’s Tricia Beaumont and Nicola Longfield on this research. Download the full report below to explore shifts in children's spending and how kids are managing their money: https://lnkd.in/eapi2Kqi

Head over to your favourite podcast platform or click the link below to listen to this week's episode of the Retail Roundup Podcast! With fresh episodes every Monday at 6am, the Retail Roundup Podcast is your go-to source for staying informed on the latest happenings in the retail world. Whether you're a seasoned professional or new to the industry, our podcast delivers essential insights and the most current retail news to keep you ahead of the curve. 🔗 Tune in now: https://lnkd.in/e8Urgs3g #RetailRoundup #RetailPodcast #IndustryInsights #StayInformed #MondayMotivation #RetailInsight #Podcast #BusinessPodcast #InsightOnTheGo #RetailEconomics #RetailUpdates

What’s been happening in retail this week? · SEPHORA will open its seventh UK store at Bluewater shopping centre in Kent this winter. Following recent openings in Manchester, Newcastle, and Birmingham, Sephora continues its rapid growth since re-entering the UK market in 2023. · Deliveroo returned to profitability with a £1.3m profit in H1 2024, up from an £82.9m loss a year ago. Gross transaction value rose 6% to £3.7bn, driven by strong grocery growth and expanded partnerships with Co-op, Waitrose & Partners, Asda, Morrisons, B&Q, and The Perfume Shop. · Tesco has more than doubled its marketplace product range to over 20,000 SKUs within two months of launching in June. The marketplace now includes garden, DIY, homeware, toys, sports, baby, beauty, and pet care categories. Tesco aims to become a "one-stop shop" by further expanding and introducing new categories and brands. · ASOS.com extended its partnership with Microsoft for three more years to enhance operational excellence through AI, using tools like Power Automate for meeting summaries and live translations. The agreement supports data-driven decision-making to improve efficiency and customer experience. · JD Sports Fashion has become Nike's first global partner for its Nike Connected Membership, launching in the US. This initiative allows customers to unlock exclusive products, rewards, and experiences by linking their JD Status accounts with Nike, enhancing the retail experience. · H&M, UNIQLO, and Zara may face delays in receiving their clothing collections due to ongoing protests in Bangladesh, where garment factories have closed indefinitely. The unrest follows the resignation of Prime Minister Sheikh Hasina amid violent demonstrations, raising concerns for the fashion supply chain. · IKEA is trialling self-serve lockers in partnership with Tesco to enhance the collection of online orders. The trial is currently underway at three Tesco locations, including Peterborough, with plans for further expansion. Customers can order various Ikea products for same-day or next-day collection. · TikTok Shop announced it will raise UK seller commission fees from 5% to 9% starting 2 September. The platform is launching a "seller missions" programme, allowing sellers to lower fees by creating live or shoppable videos. · B&Q trialled robot deliveries in Milton Keynes, partnering with DPD UK for small parcel deliveries. Customers confirm delivery and receive a code to unlock the robot’s compartment. B&Q aims to enhance fulfilment services and reduce environmental impact. · Morrisons plans a major revamp of its loyalty scheme, Morrisons More, next month. CEO Rami Baitiéh aims to expand exclusive member pricing and increase "hyper-personalised" offers. The goal is to boost transactions involving the scheme from 50% to 70%. This is just a selection of news this week. Sign up below for more insight ⬇️ https://lnkd.in/d-z25aM

📈 Boost Your Retail Resilience: Strengthen Your Strategy 🛡 Retailers are taking proactive steps to ensure they stay resilient in a rapidly changing market. Here are the top 5 actions they're prioritizing: ⭕ Investing in Technology: 60.2% of retailers are focusing on enhancing digital capabilities to stay ahead of the curve. ⭕ Enhancing Employee Training & Development: 48.4% are investing in training to boost efficiency, innovation, and leadership. ⭕ Strengthening Supply Chains: 46.2% are diversifying sources, investing in local sourcing, and using real-time monitoring technology. ⭕ Diversifying Product Offering: 43% have expanded their product ranges to meet diverse customer needs and reduce reliance on single markets. ⭕ Improving Crisis Management Processes: 35.5% have developed robust response plans, conducted risk assessments, and trained employees for better crisis management. Get all the details in our latest Retail Resilience Report, created in partnership with Barclays Corporate Banking. Learn about the resilience framework, top retailer risks, mitigation strategies, and more. 📥 Download your 'Retail Resilience Report' here: https://lnkd.in/ecvFxYCr #resilience #businessmodels #risk #barclays #retaileconomics #CyberSecurity