Weekly Winners in Retail

Weekly Winners in Retail – 06.07.20

Share this

Saying it has been another tough week in retail would be an understatement. More established brands including Harveys and Bensons entered administration and we have seen a significant increase in redundancies throughout the week, as retailers are forced to close stores and reduce their staff.

However, with every Monday, RetailRecovery looks to start the week positively, looking back at the winners in retail this week. Here are our top picks from last week:

  1. Brands team up with BRC to tackle climate change

When: 2nd July

What’s the news?

20 brands including AmazonBootsMissguidedNext, and WHSmith have put their names forward for the campaign, which is being spearheaded by the British Retail Consortium (BRC). The declaration notes retailers “are coming together through the BRC to develop a ground-breaking decarbonisation plan that will guide the industry on the steps necessary to accelerate progress to a Net Zero UK, ahead of the government’s 2050 target”. There has been a lot published around the topic in the last year, brands such as Ikea, have reduced their worldwide Carbon Footprint by 4.3% last year, a major achievement due to their product distribution fulfilment model.

Source: Essential Retail

BRC and retailers join forces to reduce carbon footprint

What do we expect to see?

This is a great initiative being led by the BRC and is much needed within the supply chain, with the retail industry contributing a high percentage towards UK and global current carbon footprint. The brands who are helping to shape the initiative whilst helping the sector overall will also benefit from being associated with this movement, as consumers look for brands who have social responsibility at the heart of their business practices.

  1. Consumer confidence increases as stores reopen

When: 3rd June

What’s the news?

Although still lower than Pre Covid levels, there are signs of a recovery in consumer confidence, based on the latest GFK UK consumer confidence flash report. Within the report, confidence in making major purchases also increased by 7 points from -32 to -25.

Source: The Retail Sector

Consumer confidence continues to improve as lockdown restrictions are lifted

What do we expect to see?

We do expect to see further growth in consumer confidence, however we are not convinced that this will return to Pre Covid levels in 2020, with expected disposable income set to reduce as the furlough scheme ends and more employers both in and outside of retail are forced to make redundancies.

  1. Mango’s online turnover jumps 50% during lockdown

When: 4th June

What’s the news?

Online turnover at Mango grew by 50% from 15th March to 1st June, as the Spanish retailer registered over 140 million visits to its ecommerce platforms. The growth represented a 20 per cent increase compared to the same period last year. Mango also gained almost 900,000 new online customers during the lockdown period, a phenomenal growth. This is a fantastic result, when sales in fashion have been significantly lower Year on Year during the pandemic.

Source: Retail Gazette

Excellent online trading performance results for Mango

What do we expect to see?

Brands like Mango who have managed to grow their new customers should be focussing on turning the growth in new customer into loyal customers, who will advocate the brand as they lead into what will be a competitive second half of the year.  The usage of their CRM data to target customers across their email and paid media activity should be a priority.

They should also be looking to use the digital data that they have collected to understand the customers buying behaviour, understand whether their purchase habits and demographics are the same as their existing customer database and how likely they are to buy in-store.

  1. M&S relaunch their Sparks loyalty scheme

When: 4th July

What’s the news?

Marks and Spencer much needed relaunch of the Sparks loyalty scheme has arrived, aiming to improve the personalisation of the shopping experience for customers and providing more charity donation options, after listening to members feedback. M&S are taking a digital-first approach, relaunching the scheme via an updated App.

Source: The Retail Bulletin

A digital-first approach for relaunching the Sparks app

What do we expect to see?

We see that this is a positive move for M&S, as they look to transform their business, moving to a digital led focus. The scheme was much maligned and needed a revamp to meet a population where digital has no boundaries.

Although we hope this is a success for the much loved brand, our belief is that this move is at least one to two years too late for the brand, as pure plays and other traditional brands have a head start, eating into M&S market share. It is essential that this data is used to understand how consumers prefer to shop post Covid19, rather than purely relying on historical data and feedback, as we have seen consumer behaviour change during the pandemic.

  1. Lockdown restrictions are lifted as ‘Super Saturday’ arrives

When: 5th July

What’s the news?                                                                  

Thousands take advantage of pubs reopening, a sigh of relief for many as hairdressers and barbers are allowed to recommence trading and a time to celebrate for many couples who have had delayed weddings, with the first of many ceremonies starting at 12.01am on Saturday morning.

Source: Sky Sports

Another boost for the economy as hairdressers and beauty salons reopen

What do we expect to see?

This all depends how socially responsible the public are. If this phase of the relaunch is a success, with no spikes in new Covid19 cases or deaths, consumer confidence will once again increase and consumers will more likely want to venture out. This in turn would have a positive impact on both the high street and industrial park footfall. 

Some of the news reported yesterday only portrays a semi successful relaunch, with pubs having to shut early and crowds of people forgetting social distancing requirements after a few drinks. Many of the business’ who reopened yesterday would not be able to afford another lockdown; everyone has a responsibility in keeping their favourite brand in business, not just by continuing to be a customer but also by doing so in a safe and socially conscious way.

Want to be a retail winner?

Are you looking for support on how you spend your Business Interruption Load? Do you need to get your retail strategy back on track? 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 recommendation, to help you navigate today’s current climate and plan for business growth.

Share this

Leave a Reply

Your email address will not be published. Required fields are marked *