Author: Mintel Group Ltd.
Last saved by: HTTP server

UK Retail Briefing - March 2020

ANALYST COMMENT: ONGOING IMPACT OF COVID-19 ON THE GROCERY RETAIL SECTOR
UK RETAIL SALES
Key points
Retail sales
Figure 1: Retail sales trends, January 2019 – January 2020
BRC vs ONS
“Small retailers” versus “large retailers”
Figure 2: UK retail sales y/y growth, BRC vs ONS, July 2017 - February 2020
Inflation
Figure 3: Annual percentage change in the consumer price index for selected product groups, January 2019 - February 2020
Inflation and wages
Figure 4: Real wages growth: Wages growth vs inflation, Jan 2016 – Feb 2020
Consumer confidence
Figure 5: Mintel Financial confidence tracker, January 2017 – February 2020
Looking forward
SECTOR FOCUS – HOUSEHOLD GOODS
The sector – what’s included
The sector in context
Figure 6: Major household goods categories, share of sales, 2018
Figure 7: Spending on household goods products, 2014-18
Figure 8: Household goods sectors year on year growth in sales, by quarter, Q1 2016-Q3 2019
Inflation
Figure 9: Inflation in household goods, % change over 12 months, May 2019-January 2020
The housing market has stabilised in recent years
Figure 10: Quarterly UK residential property transactions, Q1 2015-Q4 2019
Consumer confidence
Figure 11: Consumer financial confidence, January 2017- 2020
Where next?
LAUNCH ACTIVITY AND INNOVATIONS
UK: Sainsbury’s launches new ‘On the Go’ concept store
UK: Asda experiments with 3D technology and electronic shelf labels at Stevenage store
UK: Tesco launches plasters to match different skin tones
UK: Primark shows off latest Wellness Collection in first pop-up launch
HEADLINES FOR THE MONTH
Co-ops
Grocers
Other food specialists
Clothing retailing
Footwear retailing
Mixed goods retailing
Department stores
DIY retailing
Furniture retailing
Book and stationery retailing
NEWS ANALYSIS – FOOD AND DRINK
 BAKERS
UK: Greggs 2019 results shine but storms and coronavirus impact 2020 outlook
UK: Greggs rolls out vegan sausage roll stalls at Asda
 CO-OPS
UK: Co-op to expand same-day delivery service to over 650 stores
 CONVENIENCE STORES
UK: Costcutter and Nisa to feature refillable household products in LocoSoco tie-up
UK: McColl profits slump as it seeks new debt arrangement
 GROCERS
UK: Asda sales down after ‘mindful’ spending by shoppers at Christmas
UK: Sainsbury’s
…launches ‘Nectar Prices’ promo for loyal customers
…pilots Ecover refill stations
UK: Tesco
…takes on Aldi as it pledges to price match hundreds of products
…to adapt large store bakeries to customer demand
…zero-waste shopping service Loops enters UK with Tesco tie-up
UK: Waitrose
…grows online delivery network as it prepares Ocado split
…pushes for product provenance in latest ad campaign
…to launch thousands of new and revamped product as it ends deal with Ocado
 OTHER FOOD SPECIALISTS
UK: Holland & Barrett’s clean beauty store in Birmingham offers refill stations and demo sinks
UK: Hotel Chocolat boosts sales on the back of new openings
NEWS ANALYSIS – CLOTHING AND FOOTWEAR
UK: Bleak outlook for French Connection amid continued difficult trading conditions in the UK
UK: Bonmarché sold to Peacocks
UK: Boux Avenue drafts in advisers
UK: Burberry autumn/winter 2020 fashion show will be carbon neutral
UK: Expansion buoys rising sales for lifestyle brand Raging Bull
UK: House of Holland drafts in administrators as it seeks ‘additional investment’
UK: Lyle and Scott launches first womenswear collection in over a decade
UK: New Look cuts quarterly losses under new CEO Nigel Oddy
UK: Primark sales rise but coronavirus may be a threat
UK: Reiss sales rise thanks to new partnerships and rapid global  expansion
UK: River Island joins fellow retailers H&M and Asos in transparency pledge
UK: Ted Baker in talks to sell off London headquarters
UK: UK’s first sock vending machine by SOCKSHOP
UK: Victoria Secret sells 55% stake to private equity firm
UK: Warehouse shows off first menswear collection online
 FOOTWEAR RETAILING
UK: Shoe Zone warns of 100 store closures if business rates are not reformed
NEWS ANALYSIS – MIXED GOODS 
UK: Poundland
…to open 60 frozen and chilled ‘shop-in-shops’
…expands its kidswear range in Pep&Co stores
 MULTI-SECTOR RETAILING
UK: M&S
…extends click & collect cut-off to help grow its online sales
…to close two distribution centres risking 662 jobs
…expands mobile self-scanning and payment option to 44 more stores
…warns landlords over loss-making stores
…bra-fitting service goes digital
…extends refill scheme to Manchester in a bid to tackle plastic waste
 DEPARTMENT STORES
UK: Beales
…announces 12 store closures following administration
…remaining stores poised to close as no buyer emerges
UK: Animal rights group Peta buys stake in House of Fraser
UK: John Lewis
…underperforms and dampens results across the Partnership
…launches new labelling to own-brand baby and childrenswear
…to sell its first men’s make-up brand online and in-store
…unveils first ever TV ad campaign outside Christmas period
UK: Selfridges open Hurr fashion rental pop-up
NEWS ANALYSIS – HOUSEHOLD GOODS
 DIY RETAILING
UK: Topps Tiles warns of sliding profits significantly below expectations
UK: Travis Perkins posts positive results against challenging market backdrop
UK: Homebase returns to profits and is set to open smaller formats
 CARPET RETAILING
UK: Axminster Carpets secures future
 FURNITURE RETAILING
UK: Emma Mattress annual sales surge
UK: Uncertainty around coronavirus impacts DFS full-year guidance
 HOMEWARES RETAILING
UK: Dunhelm expects full-year pre-tax profits to be ‘slightly ahead’ of analyst expectations
UK: Laura Ashely to ‘consider all appropriate options’ if it cannot secure funds
NEWS ANALYSIS – ONLINE 
UK: Head office redundancies at SecretSales under new owner
UK: I Saw It First launches wholesale with Just A Group as global agent
UK: Ocado
…advises customers to order early as it faces ‘exceptionally high demand’
…earnings fall as sales surge
UK: SilkFred rolls out ‘inclusive’ clothing with ‘disability conscious’ brand
NEWS ANALYSIS – OTHER RETAIL
 BOOK AND STATIONERY RETAILING
UK: Waterstones sales increase boosted by non-book items
 SPORTS AND LEISURE GOODS RETAILING
UK: Outdoor specialist Montane hopes to reach ‘next level of growth’ under new owner
UK: JD Sports Chairman slams CMA findings
 JEWELLERS
UK: Watches of Switzerland expands Knightsbridge showroom in multi-million pound project
 SHOPPING CENTRES
UK: Capital and Regional profits drop as they battle ‘retail headwinds’
UK: Eco market to open in Camden
UK: Hammerson sells remaining retail parks at a discount
UK: Intu Lakeside opens ‘first-ever’ store dedicated to online retailers
UK: Intu Properties postpone financial results after failing to raise new equity
UK: Strike a pose at Selfie Factory’s fourth store in the Icon Outlet at the O2
UK: Westfield owner accelerates disposal programme as UK income declines
 MISCELLANEOUS SPECIALIST RETAILING
UK: Angling Direct posts rise in revenue despite ‘disappointing post-Christmas trading’
NEWS ANALYSIS – ECONOMY
UK: BRC reports retail sales ‘returning to growth’ in January 2020
UK: February retail sales inch up 0.1% affected by trio of storms
UK: ONS January results reveal a 3.7% uplift in all retail sales
UK: Prime Minister set to axe business sector council network

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.