Weekly Winners in Retail

Weekly Winners in Retail – 03.08.20

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In last week’s Weekly Winners, we asked how the wearing of face masks may be affecting shopping? Although it’s still early days, it has been reported by the Daily Mail that footfall across England is down by 1.6%, with retail parks reducing by 6.6% and shopping centres at -4.4%. As consumers, we are not surprised by these results, as wearing face masks will reduce non-essential sales trips. It will be interesting to see how the footfall numbers play out throughout August and how this impacts online sales.

In the meantime, we are celebrating our last weekly good news stories for August, featuring Next, SCS and Deliveroo …

  1. Next gains extra warehouse capacity as they perform above expectations

When: 29th July

What’s the news?

Usually we report brands who have seen significant year on year on growth. Although Next do not fall into this category, with a 28% year on year sales decline, the results have been reported by the business as better than expected. It should however be noted that Next took more steps than many brands at the start of lockdown, as they stopped all orders to ensure they could trade safely from a product fulfilment perspective.

Next experiences better than expected results, including a 9% growth in online sales

Source: Essential Retail

What do we expect to see?

The approach that Next took has clearly hit their trading figures for the quarter, where most of the sales are fashion related products which has also struggled through the pandemic. However based on the latest trading performance, it appears that their approach may have had a positive effect, with the positive PR surrounding their approach to looking after the health and safety of their customers helping to keep their customers engaged and continuing to be loyal to the brand.

  1. SCS show encouraging results following reopening

When: 30th July

What’s the news?

SCS have reported strong trading results since May 24th when stores started to reopen, with orders up 92.2% versus the previous year, almost returning to pre lockdown levels. This is extremely important news for the home furniture brand, who had seen sales drop by 92.5% following lockdown due to the store closures.

Source: Retail Gazette

What do we expect to see?

Although many high street brands are suffering, with consumers preferring online, certain product purchases are harder to replicate online such as buying a new sofa or bed. We expect the omnichannel retailers in the home living sector will continue to benefit from having a store presence, however brands will have to focus on which stores to retain with cost pressures. Understanding customer drive time as well as trading numbers per store will be important metrics to track. Focus should also be placed on making the in-store purchasing experience easier. It is likely that less sales people will be on the shop floor. Couple this with consumers wanting to minimise unnecessary contact, brands should be focussing on digitising the instore purchase process with self-service terminals to enable customers to buy online.

  1. Deliveroo partners with Threefold, opening up advertising opportunities for brands

When: 31st July

What’s the news?

It has been announced that Deliveroo are enabling brands to launch targeted customer activation campaigns across their platform, following a partnership with Threefold. It is expected that brands and retailers will be contacted about the opportunity in the coming weeks.

Source: Retail Times

What do we expect to see?

Historically the focus for monetising digital assets has been with publishers looking to sell ad inventory to retailers and brands across other sectors. The move from Deliveroo is an interesting one for brands who want to take advantage of the customer data they hold. With the volume of data Deliveroo will hold about a customer and the strategic partnerships they already have in place; we expect that both Deliveroo and the brands who partner will significantly benefit.

This should also act as a wake-up call to medium to large retail brands to think about how they could diversify their revenue streams. The pandemic has either seen sectors grow their new customer base substantially with increased demand for their product or service or take a hit on revenue. Monetising your online audience and customers should be considered to add to this or plug the gap.

Want to grow your retail sales?

Is Deliveroo’s approach interesting to your brand? Are you looking to grow and diversify your revenue streams? Our RetailEvaluator framework enables you to understand where you can improve your retail plan both today and in the future.

Alternatively, you can download our FREE Covid-19 retail strategy whitepaper, containing more than 110 practical recommendations, to help you navigate today’s current climate and plan for business growth.

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