Retail Round Up January 2022 - MARKETING & INNOVATION | DS SMITH RETAIL MARKETING
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Welcome to the first Retail Round Up of 2022 in which we delve into what we saw in-stores and the consumer trends that took hold over January.
4 UK retail sector kicks off 2022 with hefty sales hike 2022 started on a high with shoppers returning to highstreets to celebrate the New Year. After an initial 8% decrease driven by WFH restrictions, footfall slowly increased and reached +1.5% in the week to Jan 15 compared with the one previous. This was likely driven by the relaxation of Omicron restrictions. Despite this, new data from the monthly BRC-Sensormatic IQ footfall monitor showed that total footfall across shopping destinations in January was 17.1% lower than the same period in 2020. “Indeed, it was quality over quantity in January; less people visited retail parks and shopping centres, but those who did went to more stores at each location. It is likely the January sales influenced this behaviour, encouraging consumers to shop around in their quest to find the best deals.” - British Retail Consortium chief executive Helen Dickinson. In terms of sales, the latest BRC-KPMG tracker measured a 12% yearly jump in January. UK retail sales were 7.5% higher in January compared with pre-pandemic times. “Food sales were more muted than in previous months, as people went back to eating out more often. Consumers prioritised home purchases, boosting the sale of household appliances, electronics and homeware. In what may be signs of a return to pre-pandemic trends, furniture was the stand-out performer in January, after transport delays in the Christmas period began to ease," Helen Dickinson commented. Whilst shoppers are slowly returning to high streets, consumer confidence in spending may not be as high with inflation rising to 5.4% - the highest rate since March 1992. Further upward pressure on inflation is expected in April when a new energy price cap could see bills January shopper footfall was up 1.5% from December, driven by the relaxation of Omicron for millions of households hike by 50%. The surge in the cost of living is putting pressure on restrictions and the reduction of COVID-19 cases over the course of the month. the Bank of England to take further action – having already raised interest rates from 0.1% to 0.25% in December. Sources: UK footfall drops in first week of 2022 as work from home rules hit city centres - Retail Gazette,, Christmas trading tracker: how retailers performed over the golden quarter (retailgazette.co.uk) Face masks no longer mandatory in shops from next week (retailgazette.co.uk) Inflation rises to highest rate since March 1992 - Retail Gazette UK weekly footfall rises as workers return to the office - Retail Gazette IUK retail sector kicks off 2022 with hefty sales... | Morningstar ‘Slow start’ to 2022 for shops as footfall improves slightly | The Independent
6 What we found in-store in January 2022 Phygital Valentine’s Day Dry Jan Sustainability January Sales Indicates POS designed & produced by Some images are provided DS Smith Retail Marketing courtesy of POPAI Popwatch.
7 Boots • No.7’s Stay Perfect Range hit the shelves with big displays and factices of the product to draw the attention of passers-by. • The Maybelline Lash Curl FSDU was eye catching with bright yellow colours and multiple factices which elevated both products and visual info. • A Rimmel ‘Kind & Free’ skin tint factice showcased the product benefits and ‘free from’ formula.
8 Superdrug • Waken’s plant-based mouth wash highlighted their commitment to a circular economy with recycled packaging. • Shoppers were able to virtually experiment with different Essie nail varnish colours using a QR-activated hand model on their devices. A great way to allow customers to visualise the product before purchasing. • Max Factor also integrated a phygital feature into their wobblers with QR codes to find the perfect shade of foundation before purchase.
10 ASDA • 19 Crimes wines went big in- store this January with a full bay featuring on-shelf digital displays. • Digital fins in the chiller aisles allowed for interchangeable advertisements and promotions. • ASDA Money are using QR codes to save on advertising space whilst affording interested shoppers all the information they need.
11 ASDA • BN ‘Taste the Smile’ mega displays were put up across ASDA stores with a captivating multidimensional design to entice biscuit-lovers and younger audiences. • Gondola ends for Go Ahead advertised the chance for shoppers to win an Apple Watch with every box purchased. Printed & Designed by DS Smith Retail Marketing Designed by DS Smith Retail Marketing
12 M&S • Valentine’s day cards displays were ready for the occasion providing shoppers with heart-themed gift bags to package presents for loved ones. • Shelf barkers directed shoppers online for gifting opportunities via the M&S app. • Plant Kitchen used multiple displays including FSDUs and shelf POS to drive awareness in-store. A QR code was incorporated to provide shoppers with more information & recipes.
13 Tesco • There were a range of in- store competitions across Tesco stores this January. Shoppers had the chance to win a year’s supply of Costa Coffee by purchasing Costa products, as well as a racing simulator by purchasing Monster Energy multipacks. • Tesco were ‘Celebrating great value’ with Clubcard prices this January. The campaign included across floor vinyls, bunting, fins, headers and posters.
14 Tesco • January’s issue of the Tesco Magazine featured budget- friendly recipes that highlight ways to save money whilst making delicious meals. Their crispy chipotle tacos on the front cover was also printed on the side of these large pallets to grab shopper attention! • McVitie’s new ‘Blissfuls’ biscuits landed on FSDUs across Tesco stores in both Chocolate & Hazelnut and Chocolate & Caramel flavours for shoppers to pick from.
15 Sainsbury’s • Sainsbury’s capitalised on the common themes of January (resolutions to get in shape, Dry Jan) and grouped products under these themes. Captivating gondola ends with encouraging call to action like ‘New Year New You’ and ‘Say Yes with No and Low Alcohol’ provided shoppers with inspiration to keep up good habits.
16 Waitrose • Alcohol-free spirits hit the stores in time for Dry Jan, with SipSmith’s debut of FreeGlider (their first 100% alcohol-free spirit) and Atopia’s award winning alcohol-free line both taking the spotlight in the beers, wines and spirits aisle. • Tony’s Chocolonely launched their ‘Conversation Bars’ campaign designed to provoke real talk about serious issues impacting the chocolate industry and beyond.
17 Wilko • Ecoeggs highlight the main benefit of their product (replacing the need to buy bottles of laundry detergent). A great initiative which has eliminated 1,673,000 plastic bottles since January 2021. • Flash used clear graphics and print on pallet displays to embolden their Speed Mop and wet wipe combo floor cleaner. • Sale season in Wilko saw big red shelf edges and headers to grab shopper attention and point them towards the seasonal discounts.
18 Various retailers • New Clever Pots arrived in- stores at B&Q having been co-packed by DS Smith. This large FSDU reduced material use by stacking pots from the base upwards without incorporating shelves. • Simple but effective, Wickes used printed on cardboard and stacked boxes on top of one another in an abstract layout to draw attention to the January sales. • Mini Cheddars have introduced Crunchlets in 2 exciting flavours and used an FSDU printed with Tesco B&Q Waitrose JS Poundland Wickes ASDA JS Co-Op Co-Op visuals in bright colours to showcase them in-store.
19 Easter POS • An early visit from the Easter bunny! We started seeing Easter POS in stores giving shoppers time to gear up for the occasion. • The Peter Rabbit Cadbury’s chocolate has returned for Easter – a perfect treat for Beatrix Potter fans. • Cadbury’s Crème Eggs were displayed in quarter pallets across the Tesco estate. Waitrose Poundland Tesco
Retailer news
21 What we saw in retail in January Retail Shift to Sustainability Resell Charitable growth automation news schemes
22 Ocado and Asda plan driverless deliveries with Branson-backed start-up • Grocers Ocado and Asda are planning to make driverless food deliveries with Wayve, a British start-up that has raised $200m from investors including Virgin tycoon Sir Richard Branson. • Wayve plans to deploy self- Better driving electric delivery picture? vans around London as it embarks on trials with both Ocado and Asda. Ocado has already invested £10m in the firm last year. Source: Ocado and Asda plan driverless deliveries with Branson-backed start-up (retailgazette.co.uk)
23 M&S launches TikTok-style “live shopping” to win younger customers • Marks and Spencer will be the first major UK retailer to launch a “live shopping” service that uses influencers to model outfits over a live video stream. • Customers will be able to ask questions while they Better watch from their mobile picture? devices and “buy the look” in real time, as the retailer hopes to make the service “more relevant, more often” with its customers. Source: M&S launches TikTok-style "live shopping" service to win younger customers - Retail Gazette
24 Lidl to open 900th store in the UK • Located on Edge Lane near Liverpool city centre, the discounter’s 900th store has created 40 new jobs for the region and joins five other stores opening in January, which will collectively create nearly 250 new jobs. Source: Lidl to open 900th store in the UK (retailgazette.co.uk)
25 M&S launches in-store AR shopping app • M&S has launched a new augmented reality (AR) shopping app which is now live in-store and available to use by shoppers visiting the Westfield, White City branch. • Revealed today, the app will allow users to navigate their way around the M&S store, with the app indicating where specific items are on shelves, via an AR filter which is operated via a smartphone camera. Source: M&S launches in-store AR shopping app - Retail Gazette
26 Holland & Barrett to open 120 stores in Greece, Romania and Bulgaria • Holland & Barrett has signed a new partnership deal to open stores across Greece, Romania and Bulgaria. • The health and beauty retailer has teamed up with FOURLIS Group for the European expansion. • The company aims to open 120 Holland & Barrett stores over time, with the first stores and a Holland & Barrett website launching simultaneously in 2022. Source: Holland & Barrett to open 120 stores in Greece, Romania and Bulgaria (retailgazette.co.uk)
27 Tesco launches Clubcard Pay+ to 20m customers • Tesco has unveiled a new debit card, which will be available to all 20 million Clubcard holders. • Shoppers will now be able to pay the Big 4 grocer with the new card or use it via Apple Pay. Source: Tesco launches Clubcard Pay+ to 20m customers - Retail Gazette
28 Morrisons to scrap use-by dates on milk in favour of ‘sniff test’ • Morrisons is set to remove “use-by” dates from milk packaging by the end of January in an attempt to save millions of pints from being wasted. • They are encouraging customers to use a simple sniff test to work out whether or not the cow’s milk is off or still usable. Source: Morrisons to scrap use-by dates on milk in favour of ‘sniff test’ - Retail Gazette
29 M&S rewards customers for donating used clothing to ‘Shwopping’ scheme • As part of their ‘Plan A’ sustainability programme, M&S is calling on customers to donate unwanted clothing to Oxfam via its recently refreshed ‘Shwopping’ scheme. • Customers can drop donations off at Marks and Spencer stores using a QR code. In return, donors will receive exclusive rewards in the Sparks hub. Source: M&S rewards customers for donating used clothing to Shwopping scheme - Retail Gazette
30 Aldi donates 550,000 meals to charities across the UK over Christmas • Aldi donated 550,000 meals to people in need this Christmas through its partnership with Neighbourly. • This year’s Christmas donations have helped Aldi to meet its pledge to donate 10 million meals to families in need in 2021. Source: Aldi donates 550,000 meals to charities across the UK over Christmas - Retail Gazette
31 M&S invites 14m customers to join sustainability challenge • Marks and Spencer’s 14 million Sparks customers can join the 2-month Spark Change challenge and try a lower carbon diet, feel healthier and save money, while living more sustainably. • Sparks customers will also receive discounts on M&S’ award-winning meat-free Plant Kitchen range, as M&S joins forces with Meat-Free Monday to encourage families to go plant-based for one day a week throughout January. Source: M&S invites 14m customers to join sustainability challenge - (retailgazette.co.uk)
32 Dunelm opens new superstore at Beverley’s Flemingate centre • Dunelm has opened the doors to a new 41,000 sq ft superstore at the Flemingate centre in East Yorkshire. • In addition to homewares and furniture, the store features the retailer’s ‘Made to Measure’ and ‘Decorate & Co- ordinate’ departments, as well as a Pausa coffee shop and a department selling Dunelm’s new own-brand paints. See more: Dunelm opens new superstore at Beverley's Flemingate centre - Retail Gazette
33 Next to open first department store with fashion, beauty and home • Next is to relocate to a 94,000 sq ft store in Atria Watford that brings together its fashion, beauty and home offer for the first time • The store will also have a connecting Victoria’s Secret store, the brand in which Next owns a majority stake in the UK See more: Next announces first-of-its-kind new store concept - Birmingham Live (birminghammail.co.uk)
January shopper habits & trends
As the new year started we looked a the big trends influencing shopping habits and buying patterns.
36 Good news for high streets as consumers returned for New Year’s Eve • High streets saw footfall rise by 5.2% on NYE, compared to the previous week. • This pattern is a sharp contrast with pre-pandemic levels in 2019, when New Year’s Eve high street footfall declined by 9% from the week before. Source: Good news for high streets as consumers return for New Year’s Eve - (retailgazette.co.uk)
37 Tesco posts rise in vegan food sales during Veganuary • Tesco has reported an increase in sales of plant- based foods as customers embraced Veganuary. • The Big 4 leader said the launch of a new plant- based meal deal has also proved a success. • Brits have also bought 15 per cent more low or no alcohol beer, cider, wine and spirits than they did a year ago thanks to Dry January. Source: Tesco posts rise in vegan food sales during Veganuary - Retail Gazette
38 Just Eat orders surge to 1.1bn in 2021 • Home food deliveries are becoming increasingly popular amongst consumers. • Just Eat has reported a 33% rise in orders, reaching 1.1 billion in 2021, with 274 million taken alone in last three months of the year. Source: Just Eat orders surge to 1.1bn in 2021 - Retail Gazette
39 Grocery sales rise as Brits splash out on premium foods • According to the latest data from Kantar, sales through supermarket tills over the 12 weeks to 26 December reached £31.7 billion. • “The appetite to celebrate and splash out that little bit more this year pushed sales of luxury own-brand products up across the board. Sparkling and still wine sales grew 22% and 18% respectively, while crisps surged by 31%.” Source: Grocery sales rise as Brits splash out on premium foods - Retail Gazette
40 Hackett sales drop as formalwear demand slows down • Have UK consumers turned their back on formalwear following the restrictive WFH policies and consecutive lockdowns? • Hackett has reported a loss in sales as the demand for formalwear declined last year following several lockdowns. • Turnover fell 39.2% to £59.5 million in the year to the end of March. See more: Hackett sales drop as formalwear demand slows down - Retail Gazette
Brand and retail trends
The trends and observations which hit the headlines in January.
43 Ikea on track to become climate positive by 2030 • Ikea has revealed it is on track to become climate positive by 2030 as its annual carbon emissions fell 6% from pre- pandemic levels. • Emissions across the business, from raw material production to customers’ use and disposal of products, hit 26.2 million tonnes of CO2 equivalent in the 12 months to August, 2021, 6% lower than the 27.9 million tonnes produced in 2019. See more : Ikea on track to become climate positive by 2030 - Retail Gazette
44 Burberry signs £300m sustainability loan • Burberry has refinanced its revolving credit facility to a £300 million sustainability linked loan with ambition to become ‘climate positive’ by 2040. • Key ESG targets include accelerating emission reductions across its extended supply chain by as much as 46% by 2030 and becoming net zero by 2040, 10 years ahead of the 1.5°C pathway set out in the Paris Agreement. See more : Burberry signs £300m sustainability loan as part of its 'climate postive' pledge by 2040 - Retail Gazette
45 Nespresso opens experiential store with AR • Nespresso’s new experiential store at Trinity Leeds shopping centre features AR experiences and gives shoppers the change to create their own coffee recipes. • Customers can also attend coffee masterclasses at the store, which aims to “excite and inspire” shoppers. See more : Nespresso unveils experiential store with AR at Trinity Leeds - Latest Retail Technology News From Across The Globe - Charged (chargedretail.co.uk)
46 Ikea to open first small UK high street store in Hammersmith • Ikea will open its first small format high street store in Hammersmith on 24 February. • The store is the first of its kind in the UK and will focus on home accessories, soft furnishings and a new food offer called The Swedish Deli. • The store will be a quarter of the size of traditional Ikea furniture stores. See more: In pictures: Ikea to open first small UK high street store in Hammersmith next month (retailgazette.co.uk)
47 Flying Tiger Copenhagen to roll out scan, pay and go to UK stores • Flying Tiger Copenhagen is to introduce scan, pay and go technology to 24 London stores following a successful trial in Scandinavia. • The technology will allow customers to scan products and pay for them using their phone and will reduce queuing at Flying Tiger’s stores. See more : Flying Tiger Copenhagen to roll out scan, pay and go to UK stores (retailgazette.co.uk)
48 Asos extends partnership with Anti-Slavery International • Asos has extended its partnership with Anti- Slavery International, which gives the online retailer advice, guidance and critique on ethical trade and tackling modern slavery. • The retailer plans to unveil its human rights strategy by the end of the year as part of Fashion with Integrity. See more: Asos extends partnership with Anti-Slavery International - Retail Gazette
49 H&M launches its first ever virtual fashion collection • The new collection will only be available via a competition on its webstore “where customers can submit a fun and innovative name for one of the three looks in the range to be in with a chance of winning a look which will then be digitally fitted to them”. • The collection has been created in collaboration with Dress-X, the digital and virtual clothing platform and the launch happens as retailers and brands race to enter the virtual world, with digital and NFT collections coming thick and fast. See more: H&M launches virtual fashion collection in collaboration with Dress-X (fashionunited.uk)
50 Adidas collaborates with Prada on recycled nylon collection • Prada and Adidas are collaborating on a new collection of sportswear made with recycled nylon. • Each piece is made in Italy by Prada, using its Re-Nylon fabric, a material created through the recycling of plastic waste collected from oceans, fishing nets and textile fiber waste. Source: Adidas collaborates with Prada on recycled nylon collection - Retail Gazette
51 Selfridges owners planning luxury hotel at flagship Oxford Street store • Selfridges’ new owners are making plans for the opening of a luxury hotel amidst the revamp of its flagship store. • The businesses said they would prioritise upgrading the food hall at Selfridges and develop a luxury hotel in part of the building that has been empty since 2008, when the old Selfridges Hotel was closed. See more: New Selfridges owners planning luxury hotel at flagship Oxford Street store - Retail Gazette
and finally…
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