This week's retail news 'you may have missed'....
At mdj2, we’re passionate about retail and always looking to share our news, views, and insights. With so much information out there, we wanted to share just a small selection of retail news headlines from last week that we found interesting…?
Retail sales at lowest level since 2021 COVID lockdowns.
Retail sales took an unexpected fall last month, according to official figures suggesting a slump to COVID lockdown levels with only online operators seeing growth.
The Office for National Statistics (ONS) reported a 0.3% decline overall in October 2023, following a fall of 1.1% in September.
A rise in volumes of 0.3% had been expected by economists.
Sales fell 1.1% in the three months to October when compared with the previous three months, the ONS added.
Its deputy director for surveys and economic indicators, Heather Bovill, said: "Retail sales fell again in October to their lowest level since February 2021 when widespread lockdown restrictions were in place.
"After rebounding in September, fuel sales dipped with increasing prices discouraging customers, while food sales also dropped as consumers prioritised essential goods.
"It was another poor month for household goods and clothes stores with these retailers reporting that cost-of-living pressures, reduced footfall and poor weather hit them hard.
"However, it was a better month for online retailers, the only main sector to report growth in October."
Their volumes were 0.8% higher on the previous month, the data showed.
Of the rest, the sharpest decline, of 2%, was felt by fuel retailers.
Households still have good reason to be cautious given the?squeeze on their finances?from energy, food, mortgages and rents.
Consumer spending accounts for 60% of the UK economy and any declines will make worrying reading for those concerned that the UK economy is at risk of recession - that's two consecutive quarters of negative growth.
Zero growth for the third quarter of the year, in an initial reading, remains at risk of being revised down.
But there are economists and industry experts who believe that consumers are not widely in bad shape and many have been saving up to allow for greater spending during the festive season.
Pantheon Macroeconomics said of the data: "The further fall in retail sales in October, which left sales 3.9% below their 2022 average level, likely will be reversed in the coming months, due to robust growth in households' real disposable incomes."
The first test of that theory will be Black Friday, which could deliver a boost to growth prospects in the current fourth quarter.
Deann Evans, managing director for Europe at ecommerce platform Shopify, said: "Retailers can be forgiven for anticipating a difficult holiday shopping season, with the latest ONS figures showing a continued slowdown in British retail sales.
"But our data suggests that many shoppers have used recent months tactically to save in preparation for the holiday season.
"In fact, over half (53%) of UK shoppers have been putting aside more money each month than they have in previous years."
Kingfisher, a DIY Shop, Has Launched an AI-Powered Customer Assistant.
Kingfisher, the parent company of the B&Q and Castorama brands, has unveiled what it claims is the industry’s first artificial intelligence-powered assistant to help consumers with do-it-yourself (DIY) projects.
More businesses are utilizing AI to improve customised shopping experiences for customers to save money and increase revenue.
Kingfisher, a FTSE 100 company, said on Tuesday that the?assistant will answer clients’ DIY questions online and give step-by-step instructions on a variety of home improvement tasks, as well as product suggestions.
Customers might ask the assistance things like “How do I install a worktop in my kitchen” and “Which saw should I choose to cut my worktop?” The helper will respond with pertinent suggestions.
The assistant will soon be able to analyse photographs to do visual searches and answer visual inquiries, in addition to chatting with consumers via text chat.
The virtual assistant, which can work in different languages, will first be available on the website and app of Kingfisher’s Castorama France business. If it is successful, it will be extended to its other companies, including B&Q and Screwfix in the?United Kingdom?and Brico Dép?t in France.
“We’re hugely excited by the potential of this technology,” said Tom Betts, Kingfisher’s group data director.
Tesco trials scan-free checkouts in west London store.
Tesco is trialling scan-free self-checkouts at one of its west London stores in a bid to provide a more “seamless and convenient” shopping experience.
Shoppers at?the supermarket’s?Fulham Reach Express GetGo store can now proceed to the checkout where it will “magically present them with a list of products they have picked up”.
Customers can then check the list and pay as usual without needing to download the Tesco Grocery app as used in its other GetGo stores.
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Shoppers at its?High Holborn and Chiswell Street branches in London, and Aston University store in Birmingham, are currently required to download the app, scan a code at the entrance or exit gate before they can pick products and then walk straight out.
Ceiling cameras and weight sensors are fitted around the shops to track customer movements.
Tesco head of store customer experience Sarah Quiggin said: “We are constantly searching for the perfect formula to make the shopping trip as seamless and convenient as possible.
“This trial of scan-free checkouts will add another option for customers in Fulham Reach to save time on scanning items and will reduce queuing in store.
“We will be watching closely to see how customers react to this potential new option of having a list of their shopping presented to them automatically.”
The new technology is similar to that used in Amazon Fresh. The online retail giant’s grocery venture?introduced checkout gates?in several of its stores earlier this year.
Avon set to open first UK stores in 137-year history.
Cosmetics company Avon, known for its army of sales representatives, plans to open physical UK stores – the first in its 137-year history.
Within the next few months, it will launch stores under the Avon brand, with its sales representatives running the “mini beauty boutiques” as franchisees.
“We are on the cusp of new frontiers for Avon. It is an exciting new chapter. Women like to touch and experience the product and have that joy of seeing all the colours available,” said Angela Cretu, global chief executive, Avon International.
“Many customers go to the stores for an opportunity to try many of the products, or simply to enjoy a pamper experience with a beauty adviser.
“We want to be as inclusive as possible. We want to give women the opportunity to open a business, especially in areas where it is not so easy for them to launch a startup.”
Avon added that the new stores will target “neighbourhood communities” rather than traditional high street locations.
Furthermore, the beauty brand has expanded its partnership with Superdrug. In September it started stocking Avon products in 100 stores, as well as sell online. From 27 November, the collaboration will be expanded to hundreds more stores, with plans to eventually make Avon products available through Superdrug’s entire chain of almost 800 outlets.
In April, the cosmetic company also launched on Amazon in a bid to accelerate its omni-channel strategy. It unveiled a new visual identity and ‘Embrace your Power’ brand positioning.
The marketplace offering is designed to embrace a wider customer base who “wish to enjoy aspirational beauty products at irresistible value”, something that’s even more important for customers due to the ongoing cost-of-living crisis. Over 300 Avon beauty products are now available via the marketplace.
?Screwfix launches a Christmas Jumper.
With the festive season just around the corner, omnichannel retailer, Screwfix has launched its very own Christmas jumper for tradespeople and serious DIYers looking to add some fun to their wardrobes this year.?
For the first time ever, Screwfix customers can buy a tool-themed colourful Christmas jumper with 100% of the profits from all sales going to The Screwfix Foundation, meaning those who purchase the branded jumper can not only look good but also feel good too.?
Ideal to wear or gift to a loved one, the Christmas jumper retails at?￡19.99. Its eye-catching design combines a traditional yuletide pattern, with a quirky visual take on the range of tools available from Screwfix.??
Available in a variety of sizes, from small to XXL, the jumper can be ordered online at?www.screwfix.com, via the app, 24/7 call centre or in store.?
All profits generated from sales of the limited-edition jumper will be donated to The Screwfix Foundation, a grant-giving charity with a clear purpose to support projects that improve, repair, and maintain homes and community facilities used by those in need across the UK.??
Jack Wallace, Marketing Director for Screwfix, says: “Our customers have told us how much they’d love a Screwfix Christmas jumper, so it’s great that we’re not only able to fulfil their Christmas wish lists this year, but in doing so, we’re also able to raise much needed funds for The Screwfix Foundation.?
“We hope our customers love it as much as we do!”?
Set up in 2013 to give back to local communities, The Screwfix Foundation has been donating to charities and not-for-profit organisations to help fix, repair, maintain and improve facilities for those in need.
Customers and suppliers of Screwfix, and colleagues at Screwfix, have raised an incredible ￡13m over the last 10 years, which has been donated to more than 2500 organisations. In the last two years alone, more than half a million people have been impacted by donations from The Screwfix Foundation. ??
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