Retail Economics

What’s been happening in retail this week? 💄 Boots UK recorded its 14th consecutive quarter of market share growth, with a 6.2% rise in Q3 retail sales and a 6.9% increase for the full year. Digital sales surged 18.7%, driven by beauty product demand and strong Boots app usage. 👗 Marks and Spencer launched a 27-piece collection with designer Bella Freud on 17 October, featuring cashmere sweaters and a pin-striped suit. This partnership blends Freud's signature style with M&S’s renowned quality, appealing to a broader audience. 🤖 Starship Technologies has partnered with Bolt to launch an autonomous grocery delivery service in Tallinn, Estonia. Around 180,000 residents can now order groceries via the Bolt Food app, using robots to reduce traffic and emissions. 🎓 Lidl GB launched its first retail leadership degree apprenticeship with Kingston University, welcoming 51 apprentices. The four-year programme combines academic study with hands-on experience, offering participants the potential to earn up to £46,000 by their final year. 💳 Currys plc unveiled flexpay, a new credit option that allows customers to choose between fixed monthly payments or buy now, pay later plans. This initiative aims to simplify access to technology with personalised credit solutions. 🧸 The Entertainer has launched over 850 toy concessions in Tesco stores across the UK and Ireland, creating 1,200 jobs. This expansion, averaging 100 stores a month, increases toy accessibility for more than 90% of UK shoppers. 🧵H&M introduced a pop-up shop for its premium kidswear line, H&M Adorables, at Selfridges. This collection, featuring high-quality materials like cashmere and organic cotton, marks H&M’s first entry into department stores, aiming for timeless, long-lasting style. ♻️ eBay is expanding its Circular Fashion Fund, committing $1.2m (£921,000) to fashion start-ups by 2025. The fund, which supports circular fashion initiatives, offers mentoring, with applications open until 15 November 2024. 📈 Joshua Alliance, a member of the family who built N Brown Group, has made a cash offer of 40p per share, valuing the home shopping retailer at £191m. The bid, through Falcon 24 Topco Limited, aims to address liquidity concerns and support growth. 🎁 Poundland & Dealz introduced its Perks rewards app nationwide after a £20m investment. Following a successful trial in 100 stores, the app offers discounts on brands and aims to attract over 500,000 users. 🚚 wilko has teamed up with Deliveroo to offer on-demand delivery of over 3,000 home and garden products in as little as 25 minutes. Initially available in 10 locations, the service will expand to 50 by the end of the year. This is just a selection of news this week. Sign up below for more insight ⬇️ https//lnkd.in/d-z25aM

📊Navigating Operational Risks in Retail🛠️📉 Operational risks are some of the biggest challenge retailers face in 2024, as we discussed at the Barclays UK Corporate Banking 2024 Retail Conference last week. The conference explored a wide variety of risks facing retailers, and the various ways retailers are dealing with them. As our chief executive Richard Lim said in conversation with Karen Johnson, Head of Retail and Wholesale at Barclays UK Corporate Banking, operational risks are high on the agenda, with business models changing quickly. He said: “The thing that stands out to me is the pace of change. The customer journey has become so much more complicated – it used to be very one dimensional. Today shoppers almost unconsciously bounce between channels on their path to purchase.” In response, retailers need to build agility and adaptability into their business models as much as possible, and cater to the needs of consumers. “Operating models are evolving and models are under significant pressure to make sure they’re fit for tomorrow’s consumers.” Generative AI is set to turbocharge the pace of change further. One change already happening is in the area of search and discovery, with generative AI starting to shift how consumers (especially younger people) discover or look for products. But retailers are still on the fence as to what it could mean for the sector more broadly, with respondents to our survey unclear as to whether it is a threat or an opportunity. One thing that is clear, however, is that retailers are using a wide range of technology to drive operational efficiency and protect profitability in difficult times. To read more about how retailers are embracing this, read our report – written in partnership with Barclays Corporate Banking– on Retail resilience here. 🔗 https://lnkd.in/eNGvUg5G #RetailEconomics #BarclaysUK #Barclays #BarclaysUKCorporateBanking #2024RetailConference #OperationalRisks

Excited to share our latest research with DS Smith—a first-of-its-kind study examining the scale of plastic packaging in European grocery retail 🛒 Our team of analysts audited 1,500 food and drink items, visiting 30 leading supermarkets across six European markets, combining fieldwork with sophisticated economic modelling to quantify the amount of unnecessary plastic in grocery shopping. The UK was found to be the most reliant on plastic, with 70% of food and drink purchases wrapped in plastic, compared to 59% in France, which leads the way in reducing plastic use. Notably, over half of plastic in UK grocery baskets could be removed or replaced by other, more easily recyclable materials. This equates to an astonishing 29.8 billion avoidable pieces of plastic annually. The research was featured in: BBC Wake Up to Money – Taxing times The Times The Guardian The Daily Mirror [online] Daily Mirror [print] Daily Record [print] Materials Recycling World New Food Magazine Food Info Tech The Grocer Lets Recycle Resource Food Manufacture Packaging Portal Paper First Web   ...and in media outlets in France, Italy and Spain Check out The Material Change Index ⬇ 🔗 https://lnkd.in/e-TFiWd4 #PlasticWaste #Retail #PackagingInnovation #Sustainability

🚚 Top Delivery Frustrations in 2024: Insights for Retailers 📦 As the retail landscape continues to evolve, understanding consumer frustrations with delivery is critical for maintaining customer satisfaction and loyalty. Our latest research with GFS (Global Freight Solutions Ltd), identifies the top delivery challenges faced by consumers today: - Late Deliveries: 🚚⏳ A significant 42% of consumers report frustration with deliveries arriving late and nobody being home to receive them. - Unsecure Package Locations: 🔒📦 41% of consumers worry about packages being left in unsecure areas, increasing the risk of theft or damage. - Poor Packaging: 📦 ❌ 36% experience damaged items due to inadequate packaging. - Return Difficulties: 🔄😩 32% find it challenging to return items or process returns. - Stolen or Missing Parcels: 📦❌ About 32% report issues with parcels that are stolen or missing. - Inaccurate Tracking Information: 📍❌ 31% express frustration over poor tracking information, leading to uncertainty about delivery status. - Poor Communication: 📞😕 30% feel let down by inadequate communication from retailers and carriers regarding their deliveries. - Poor Quality of Service: 🙁📉 21% report dissatisfaction with delivery services, including rude delivery personnel. These frustrations not only impact the customer experience but also contribute significantly to basket abandonment, costing retailers £31.5 billion annually in lost sales. Retailers must prioritize enhancing delivery options to meet consumer expectations and reduce abandonment rates. Offering a variety of reliable delivery choices can turn these frustrations into opportunities for customer loyalty and satisfaction. For more insights on improving your delivery strategy, download our full report here. 🔗 https://lnkd.in/eHZE93Nn #RetailEconomics #DeliveryExperience #CustomerSatisfaction #Ecommerce #BasketAbandonment #GFS

What happened to retail stocks last week? 📈 Leading Stocks: N Brown Group (5.7%) was boosted by a return to profit in the six months ending 31 August, after a loss in the same period last year. The company's focus on managing profitable sales and reducing costs encouraged investors, despite a dip in sales due to challenging market conditions and poor weather. Zalando (3.6%) rose after raising its financial outlook for the year, driven by strong demand for new season stock in the third quarter. Revenue growth is now expected to be between 2%-5%, up from its previous forecast of 0%-5%. 📉 Trailing stocks: THG (-14.4%) declined following a £95 million fundraising effort to support the demerger of its Ingenuity division. Sainsbury's (-6.9%) fell back after its largest stakeholder, Qatar Investment Authority, sold nearly a third of its shares, raising just over £300 million. JD Sports Fashion (-5.4%) remains under pressure due to Nike's recent sales decline and a weaker-than-expected performance from Hibbett's in the US. 🔍 Sector insights: Overall, retail stocks* rose by 1.6% on the previous week. This compares with a c.0.4% decline in the FTSE All share index. *Defined by a weighted basket of 40 food and non-food retailers. #RetailStocks #MarketUpdate #StockPerformance #Investing

Head over to your favourite podcast platform or click the link below to listen to this week's episode of the Retail Roundup Podcast! 🎙️ We cover key stories on SHIEN, Dunelm, Currys plc and more! Join the conversation and discover what’s shaping the retail landscape. 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

⭐ Retail Economics was delighted to partner with Barclays Corporate Banking on Wednesday for its 2024 Retail Conference, where the theme was RESILIENCE in the face of the myriad challenges the sector faces. 👨💼 Our chief executive Richard Lim spoke alongside Karen Johnson, Head of Retail and Wholesale at Barclays UK Corporate Banking on the key risks retailers face today, and how businesses are working to overcome them. 📑 As we explore in our co-authored report, ‘Retail Resilience’, the sector has – and continues to – weathered the various storms it faces. 💷 Over the last three years, 87% of the UK’s 100 largest retailers have been profitable. And with their average founding year being 1950, consumers clearly value the brands that have been on the high street for a long time. Our report investigates the various ways retailers are achieving this, but underpinning everything, as Karen Johnson said at yesterday’s event, is organisational culture - “A strong culture, that the leadership team lives and breathes, underpins everything that makes a business resilient.” 💻 Karen also mentioned the importance of managing cyber attack risks - “No matter how much you invest in technology, an organisation is only as good as its people and their understanding of cyber security.” 👍 Despite a range of risk factors impacting retailers in 2024, from supply chain and energy prices due to geopolitics, to operational changes putting pressure on business models, Karen reported a slight uptick in business confidence in 2024 so far, saying: “We’re seeing activity levels in M&A and refinances pick up, and the appetite is there to support businesses because retailers have proven themselves resilient.” She added: “We are seeing businesses with liquidity acquiring competition, which is exciting for sector as a whole and its future growth, which is absolutely key to the UK economy.” 🖱 If you’d like to read more about the risks retailers are facing, and how they’re tackling them, download our report here. 🔗 https://lnkd.in/ecvFxYCr #Retaileconomics #Barclays #RetailResilience #Cyberrisk #BarclaysRetailconference2024

 What’s been happening in retail this week? ·      Waitrose & Partners teamed up with Just Eat Takeaway.com to expand its on-demand delivery service, rolling out to 229 branches in cities like Birmingham, Glasgow, London, and Manchester. This adds to existing partnerships with Deliveroo and Uber Eats. ·      Marks and Spencer is piloting an autonomous farming scheme with supplier Huntapac Produce Limited, using robots and drones to reduce carbon emissions. The first product, parsnips, will be available in November. ·      AllSaints debuted an unlimited subscription rental service in the UK, offering womenswear and menswear for £79 per month. ·      Dunelm is deploying Google Cloud’s Vertex AI platform to improve its ecommerce search capabilities. ·      Amazon introduced AI shopping guides to simplify product research, offering recommendations on over 100 product types. ·      Myprotein partnered with Holland & Barrett, launching 30 new product lines, including five retail exclusives. This move supports Myprotein’s strategy to expand into offline retail, following similar partnerships with WHSmith and Muller. ·      Dr. Martens plc announced plans to cut 150 jobs at its UK and US head offices as part of a £20m to £25m cost-saving initiative. The redundancies will affect various departments, including marketing and ecommerce, following a nearly 43% drop in pre-tax profits to £97.2m. ·      Inditex’s UK and Ireland managing director Max Nutz stepped down after 25 years, with Pilar Losada succeeding him. Losada, who previously held senior roles in Australia, New Zealand, and China, joins amid strong sales growth across Inditex brands such as Zara and Stradivarius. ·      THG announced plans to demerge THG Ingenuity into a private entity. CEO Matthew Moulding emphasised operational improvements and a positive outlook for the busy trading period ahead. ·      N Brown Group, owner of JD Williams, Simply Be, and Jacamo, reported a £0.2m statutory profit for six months to August 2024, compared to a £2.8m loss last year. Group sales fell 6.7% to £272.2m. Product revenue declined by 7.9%, and financial services by 4.6%. ·      SHEIN reported a 40% rise in UK turnover to £1.55bn for the year to December 2023, with pre-tax profits reaching £24.4m. The fast-fashion giant credited pop-up store success and UK customer loyalty. Shein's UK sales rose 38% to £1.55bn, surpassing Boohoo Group's £1.09bn. Pre-tax profit doubled to £24.4m. This is just a selection of news this week. Sign up below for more insight ⬇️ https//lnkd.in/d-z25aM

What happened to retail stocks last week? 📈 Leading Stocks: Boohoo Group PLC (8.5%) rose after reports suggested the company is considering selling some of its brands to focus on core operations. Investors reacted positively, viewing the move as a way to unlock shareholder value amid ongoing challenges from increased competition and falling demand. ASOS.com (3.5%) gained ahead of the introduction of return fees for frequent returners. Customers who return goods regularly will have £3.95 deducted from their refund if they keep less than £40 worth of items. 📉 Trailing stocks: JD Sports Fashion's (-10.9%) fell despite strong interim results, as concerns over a disappointing update from Nike overshadowed the retailer’s performance. JD Sports reported record half-year sales, with revenue up 5.2% to £5.03 million in the 26 weeks to 3 August, and maintained its full-year profit target between £955m-£1.03bn. However, Nike, which accounts for nearly half of JD Sports' sales, saw its revenue drop by 10% in the three months ended 31 August. Burberry (-8.5%) declined after Stifel downgraded its price targets for the second half of FY25 and FY26, due to a more gradual recovery in performance than initially anticipated. Stifel maintained a 'hold' rating on the stock. Greggs (-6.5%) received a muted response to its Q3 trading update, as sales growth slowed due to riots and poor weather. Like-for-like sales rose by 5.0% in the 13 weeks to 28 September. 🔍 Sector insights: Overall, retail stocks* fell by 2.0% on the previous week. This compares with a c.0.6% decline in the FTSE All share index. *Defined by a weighted basket of 40 food and non-food retailers. #RetailStocks #MarketUpdate #Investment #StockPerformance

Head over to your favourite podcast platform or click the link below to listen to this week's episode of the Retail Roundup Podcast! 🎙️ We cover key stories on John Lewis & Partners, Marks and Spencer,Tesco and more! Join the conversation and discover what’s shaping the retail landscape. 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