The Goods UK – 10 July 2024
Welcome back to The Goods UK. This week, we’re chatting bar wars, biscuit “top-ups” and no/low booze.
Has the unpredictable weather got you counting down the days, hours and minutes until your next holiday? You’re not alone. A whopping 6 million UK employees plan to WFB (work from the beach) this summer, making the most of flexible working practices that incorporate work days alongside the usual R&R.
What’s in: this week’s trends
- Bar wars – publicans strike back: The Campaign for Pubs has called on Co-Op to stop showing a “disgraceful” TV ad which encourages people to “stay in with two pizzas and four beers”, instead of going to the pub to watch the Euros. The response comes as the wider hospitality industry continues to suffer from decreasing sales due to cost pressures on shoppers’ wallets. As England prepare for their semi-final against the Netherlands, publicans will be hoping extended licensing hours allowing venues to stay open until 1am will bring in the punters.
- Diamonds are a girl’s best friend: Binge-worthy TV and Hollywood films are bringing extra sparkle to the tills of independent London jewellers. Fans of shows such as House of the Dragon have been requesting replicas of jewellery worn by their favourite characters, bringing a much needed boost in sales after a few “gruelling” years for designers. Last month Netflix claimed that Bridgerton had boosted the UK economy by £275million over the past five years. That’s certainly something to get the ton talking.
- Sip happens: To meet our ever-changing shopping habits, it’s clear that retailers need to get creative to attract new customers. This week luxury retailer Fortnum & Mason became the latest company to launch a subscription delivery service. The new offering provides ‘top ups’ of biscuits, loose leaf teas and jam, making it easier than ever for people to enjoy premium goods. Available on either three-month, six-month or 12-month subscriptions, the service also allows customers to pay monthly or annually.
Cash or card: shopper behaviour
What’s in and out of our baskets right now? Today, it’s all about the power of preloved, TikTok and adaptability.
- Falling out of love with luxury: There is growing evidence that the pandemic-fuelled, “revenge spending” boom for luxury brands may be faltering, with more and more people asking the question – is it really worth it? To maintain interest, brands need to demonstrate two things: value (quality and personalisation rather than price), and that they are keeping supply below demand.
- Make mine a nonny: The latest data from Ocado Retail suggests that more of us have been reaching for no/low alcohol products while enjoying the footie. The online supermarket reported that sales of no/low alcohol spirits have increased by 20%, alcohol-free wines by 9%, and no/low alcohol beer by 7% since the first game of the tournament. While an Ocado Retail buyer for the category said “the increase in sales… reflects a shift toward mindful consumption,” you’d have been forgiven for fancying something a little stronger whilst watching a certain match go to penalties last weekend.
- Time for some new wheels: For the first time since the pandemic, over one million new cars were sold in the UK in the first half of the year. That’s an increase of 6% compared to 2023, according to the Society of Motor Manufacturers and Traders. But although these figures have been labelled a “relief” for the industry, experts have warned that this growth has been largely driven by corporate and fleet sales. The macro environment is still one of high inflation and high interest rates and it will take time before private buyers will help steer industry growth into the fast lane.
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:
- Roblox style: Iconic skatewear brand Vans has partnered with Roblox to release a new trainer in the immersive experience platform before it hits stores in the real world. Vans World, one of the longest-running brand experiences on the platform, has been visited more than 111million times since launching in September 2021. Considered the next frontier for licensing, Roblox has been busy in recent weeks bringing avatars shorts, shirts and socks from the new Manchester United 2024/5 home kit, exclusive virtual Rolling Stones merchandise and even paid jobs at IKEA.
- Try this on for size: Retailers are increasingly experimenting with technology to deliver more interactive and immersive in-store experiences. One retailer who is clearly not short of ideas is Selfridges. The upscale department chain has teamed up with Snapchat to introduce an augmented reality (AR) locker room in its Oxford Street store this summer. Running throughout July and August, the initiative allows shoppers to virtually try on sports kits and interact with AR lenses.
- Trial and error: The four-day work week is a concept viewed positively by many employees. Asda, however, has scrapped their plans after a pilot scheme left staff exhausted. Staff across 20 stores, who worked a 44-hour week over four days instead of five for the same pay, noted the increased difficulties around childcare, transport, and physical intensity that resulted from the longer shifts. Despite this, stores involved in the trial did see increased sales per hour and fewer sick days.
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