E-commerce and Market Trends:
- The European ecommerce market is expected to reach 1.5 trillion dollars by 2027, showing an average annual growth rate of 9 percent.
- UK retail inflation falls to its lowest level in a year, with shop prices rising at an annual rate of 6.2% in September, down from 6.9% in August.
- Boohoo Group reflects on a meager half-year, reporting a 17 percent revenue decline. The UK market, which accounts for most of its revenue, was significantly affected.
Retailer Performance and Strategy:
- AllSaints is rolling out a new store concept globally, aiming to make its stores "lighter" and "more feminine" while retaining its industrial brand DNA.
- Footwear retailer On targets double net sales between 2023 and 2026, aiming for a compound annual growth rate of over 26% to at least ￡3.19 billion.
- Fat Face posts a 15% increase in total sales for the 52 weeks, reaching a total of ￡282 million, up from ￡245 million the previous year. Product quality is emphasized as a key factor in their success.
- Luxury streetwear retailer END Clothing faces challenges, with operating profits plummeting by almost ￡30 million last year due to various issues, including teething problems with a new stock system.
- ASOS trims profit outlook after a damp summer affected sales. Stock levels have been reduced by 30%.
Retailer Expansion and Partnerships:
- PUMA launches on TikTok Shop, leveraging the TikTok Affiliate Program to collaborate with creators and bring products to life through creative content.
- Timberland appoints Alexander Wang as CMO and Maisie Willoughby as VP and CMO, effective from 16 October.
- Pentland Brands makes three senior brand leadership appointments across product and marketing for various brands, including Speedo, ellesse, MITRE, Kickers, and Canterbury.
- AYBL expands its product line into menswear.
- Hoka opens its first retail store in Europe, located in London’s Covent Garden.
- Urban Outfitters opens its first-ever standalone denim retail space in the form of a brand-new pop-up store BDG Jeans by Urban Outfitters.
Market Challenges and Changes:
- Credit insurer Allianz Trade withdraws cover for The Very Group's suppliers amid concerns about its falling profits and the tough trading environment.
- Footfall across all UK destinations declined in September as consumers restricted their shopping ahead of the Christmas season.
- PayPal faces a class action lawsuit by consumers alleging that its anti-steering rules stifle competition against lower-cost payment platforms such as Stripe and Shopify.
- Meta plans to charge $14 a month for ad-free Instagram and Facebook subscriptions, in response to the EU's Digital Services Act. TikTok is testing a similar monthly subscription model for ad-free content, currently priced at $4.99 per month during the trial phase. This test is in its early stages, and it's uncertain whether this model will be adopted globally.
- Meta’s 'Twitter killer', Threads, experiences a lack of interest from major brands, resulting in an 80% drop in traffic.
- Selfridges brings back the legendary Yellow Pages, showcasing the store’s latest collections for Autumn and Winter.
- PayPal has been hit with a class action lawsuit by consumers represented by law firm Hagens Berman alleging that the fintech giant’s anti-steering rules stifle competition against lower-cost payment platforms such as Stripe and Shopify.
- Shopify is investing in wholesale platform Faire, the companies said on Wednesday, in a global deal that would see the start-up adopt Shopify technology for its clients. Faire, founded in 2017 and valued at $12.59 billion, would become the recommended wholesale marketplace for Shopify merchants. The companies declined to disclose the value of the deal or how big a stake Shopify was taking.
- Klaviyo's recent stock market debut saw a staggering 23% surge, propelling its valuation beyond the $9.5 billion mark established during the VC boom two years ago. Klaviyo refrained from external funding until profitability, allowing founders Andrew Bialecki and Ed Hallen to retain substantial stakes. Notably, Shopify is a key stakeholder, with its vendors contributing significantly to Klaviyo's annual recurring revenue. A strategic partnership with Shopify, including revenue sharing and a recommended provider status, underscores the symbiotic relationship.
Michael Boyle is a highly accomplished marketing professional and the owner of Modernity Marketing — a digital and creative marketing agency. Michael is a sought-after freelance marketing consultant overseeing 360-degree digital marketing budgets, devising strategies, providing creative direction, managing photoshoots and graphics, and spearheading brand launches from concept to reality.?His breadth of expertise makes him a rare go-to authority for premium D2C brands.
