The Goods UK – 11 September 2024
Welcome back to The Goods UK. This week, we’re chatting the return of price promises, ethical beauty and croissant handbags.
More of us are focusing on our health than our wealth. The great British public is almost twice as likely to track their daily step count than their investments and pensions, according to digital wealth manager Nutmeg.
What’s in: this week’s trends
- 100 years in the making: John Lewis has reinstated its century-old ‘ never knowingly undersold’ price promise, in what feels like the sector’s biggest U-turn of the year. The retailer will now match prices on branded goods in-store and online against 25 other retailers. While Chief Exec Peter Ruis wouldn’t overtly confirm that removing the famous price guarantee was a mistake from the outgoing leadership team, he did say shoppers “automatically assumed all prices went up”, which “wasn’t true necessarily.”
- Guess who’s back, back again: The Body Shop has bounced back from the brink after being rescued from administration. The new leadership team wants to steer the company’s ‘revival and reclaim its global leadership in the ethical beauty sector it pioneered’. It is also understood there are no immediate plans to close any of its remaining stores – beauty lovers will rejoice!
- Unwanted visitors: In a potentially controversial move in the midst of its cost of living crisis, the New Zealand government has confirmed it will nearly triple entry fees for (almost all) tourists. The rationale is that the country’s natural environment struggled to cope with the 3.2 million people that visited last year. But despite vocal criticism from the country’s tourism industry, New Zealand’s not alone. In fact, Edinburgh is on track to become the first Scottish city to introduce a similar tax that is expected to generate tens of millions each year.
- Not right on time: A warning has been sounded ahead of the inevitable rush of pre-Christmas deliveries. Not only does the Red Sea crisis mean international shipping costs are up 244%, restrictions in the Panama Canal and a potential escalation in the US-China trade war could exacerbate the problem further. A little closer to home, Royal Mail has said it will hike the price of first-class stamps to £1.65 in October, just days after it was revealed second-class letter deliveries could be scrapped on Saturdays.
Cash or card: shopper behaviour
What’s in and out of our baskets right now? This September, we’re after coffee, cocoa, and ‘creepy’ chic.
- Costa-lot coffee: Millennials are splashing out on takeaway coffee more than any other generation, burning through a mighty £728 a year. Despite readily available free office coffee, many still opt for a “nice” cup elsewhere – because why settle, right? Over in the next aisle, Twinings might be dividing tea aficionados with its new ready-to-drink sparkling range. This is the latest “no-lo” beverage aimed at people who want a “healthy” alternative to alcohol.
- Fair play: Despite the cost of living crunch, nearly 70% of British adults are sticking to Fairtrade. Sales have stayed strong across cocoa, tea, and veggies. However, charity retailers reported a decline in high-quality donations in 2023. Many attribute the decline to people hanging onto items for longer, or reselling them on second-hand marketplaces. The survey results come as Oxfam announces it will be the first UK charity to run a “wardrobe” shop on Vinted as part of its Sixth Secondhand September
- From brats to bats: As brat summer fades, goth winter From Jenny Ortega’s blood-red tights, to Primark’s Beetlejuice collab, the goth aesthetic is creeping back into high street wardrobes. Industry commentators claim the charge is happening now because it’s people’s ‘way of dealing … with the sadness and violence in the world.’
- The big EV slowdown: Volvo has ditched plans to sell only electric cars by 2030. The car maker blamed the move on changing market conditions, amid fears the public still prefers petrol and diesel vehicles. Manufacturers are also apparently slashing the price of EVs and rationing other models in a bid to meet the Government’s electric sales targets.
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:
- A Lidl taste of London Fashion Week: Following the sell-out success of its “croissant handbag”, the grocer is launching a pop-up pâtisserie during the Capital’s biggest fashion event. Dubbed “Patisserie Lidl”, people will be able to get their hands on the eye-catching leather handbag – designed by Nikolas Bentel – for a handsome £50. Low-cost, tasty goods will also be on offer from the fully functioning bakery should shoppers work up an appetite. On an even sweeter note, sale proceeds will go to children’s charity, the NSPCC.
- Make way for the megapub: The rise of the vast, purpose-built, ‘megapub’ continues. What these spaces might lack in character and charm, they make up for with co-working spaces, indoor slides and bowling alleys. That megapubs don’t look or feel like traditional boozers may also be a plus for Gen Z, which is drinking less alcohol than previous generations.
- Supermarket savings sweep: Asda has launched one of the UK’s biggest workplace savings schemes. The twist is that employees won’t have to deposit fixed amounts and withdrawals can be made at any time, without additional fees. Elsewhere in the labour market, ministers have pledged to help a million low-paid workers get a pay rise of about 6% next year, taking the national living wage to £12.10 an hour.
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