The Goods UK – 17 July 2024
Welcome back to The Goods UK. This week, we’re chatting fizzy famines, progression and performance, and why you might not “go Direct” anymore.
In the week where McVitie’s finally settled the hotly debated question as to whether Jaffa Cakes are cakes or biscuits (Clue’s on the box, bruv), did you know the average Brit munches on three biscuits a day? Just don’t get us started on which ones should be banned from supermarket shelves…
What’s in: this week’s trends
- Three Lions, four million beers: Football might not have come home, but the frenzy brought on by the Euros these past four weeks has delivered a much needed £3.1 billion boost to the UK economy. Asda said it sold over 20,000 large screen ultra HD TVs during the tournament, and JD Sports said England merchandise sales jumped over six-fold for the semi-final.
- Fizzy famine: Deals on free refills of sugary drinks could end in Wales, as the new government looks to encourage people to make ‘healthy’ food and drink choices. According to reports, over 60% of the country’s population is currently overweight or living with obesity. However, the move has been met with criticism from opposition parties who deem it a ‘Nanny knows best’ approach.
- Poo you: Tesco has kicked off a new trial which will provide 400 of its dairy cows with the methane-reducing feed supplement, Bovaer. The trial looks to reduce the carbon footprint of each cow by around 1.3 tonnes CO2e annually, and could be rolled out across the rest of Tesco Sustainable Dairy Group if the trial is successful. Tesco says the feed supplement has no impact on animal welfare.
Cash or card: shopper behaviour
What’s in and out of our baskets right now? Right now, we’re channelling our inner Cliff Richard and going on a last minute “Summer Holiday”:
- Sunshine wins by a landslide: Holiday provider TUI has reported a surge in searches for late summer holiday packages as Brits who chose to postpose their plans to cast their ballot are now looking to find some sun. The highest proportion of bookings came from the Midlands at 19%, with the North and Scotland also seeing a significant uplift.
- Fashionistas into frugalistas: As the cost of living crisis continues to force shoppers to tighten their belts, recent figures from GlobalData’s June 2024 UK consumer survey confirms that nearly a quarter of UK apparel shoppers have swapped from expensive brands to more cost effective alternatives. Interestingly, 81.5% of shoppers over 55 continued to shop at the same retailers. This is because they are typically less impacted by inflationary challenges, but also because they have less brands to switch to.
- If you like piña coladas: Rum brand Malibu and oat milk creator Oatly have teamed up to create the diary-free “Piña Oatlada”, a piña colada-flavoured soft serve with a hint of booze. Debuting at Paradise Arches in Shoreditch, and appearing at select European festivals this summer, the partnership shows how companies are evolving their NPD offerings to changing taste buds. Given the vegan ice cream market could reach $805.3 million by 2027, there’s arguably strong potential for vegan cocktails as well.
Making moves: industry changes & innovation
ICYMI, even industry icons need to reinvigorate their brand presence through unique and creative ways. Here are some movers and shakers that you should know about:
- Next level wellness: Health and wellness brand Holland & Barrett is partnering with Next by opening “store within a store” spots across select Next stores this summer. Starting in Ipswich, shoppers can snag up to 1,000 top products and receive personalised advice on all their favourite lotions and potions. Part of H&B’s £70 million investment to jazz up their estate, the announcement also reinforces the power of brand-to-brand collaborations that allow companies to tap into each other’s audiences.
- Don’t go direct: Direct Line is to launch on price comparison websites for the first time in the insurance brand’s almost 40 year history. New products specifically designed for price comparison sites are expected to be offered “in due course”. As well as a significant evolution for the company, the move is another reminder that retailers need to have a clear strategy for their DTC channels.
- Progression and performance: Co-Op has become the first UK retailer to publish a socioeconomic pay gap report, highlighting the difference in pay between colleagues from different backgrounds. The data, collected from 57,000 volunteer employees, showed that those from lower socio-economic backgrounds (SEBs) are less likely to progress into senior positions. Industry commentators have called the report a “brave step” that will “ensure those from all backgrounds can get in, get on and belong in the workplace”.
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