The Goods UK – 7 August 2024
Welcome back to The Goods UK. This week, we’re chatting freezer temperatures, apprenticeships and why we should all be shopping in Cardiff.
The Blackcurrant Foundation has just announced a bumper crop of the popular fruit, despite challenging weather conditions. About 90% of British blackcurrants are destined for Ribena, which was first produced in 1938.
What’s in: this week’s trends
- A little off the top: The Bank of England has cut interest rates for the first time since March 2020. While economists claim it’s not ‘job done’ in the fight against inflation, the number of mortgage lenders cutting their rates brings welcome relief to homeowners up and down the country.
- Riding out the turbulence: Budget airlines Ryanair and Wizz Air are grappling with a summer of chaos, thanks to air traffic control blunders and tech failures. Meanwhile, at the posher end of the spectrum, British Airways owner IAG is handing out dividends left, right and centre, as it rides a wave of increased demand and shows off its lucrative Avios loyalty programme.
- A McFlurry of offers: Have you noticed fast-food chains are throwing deals around like confetti at the moment? It seems the likes of Maccy D’s, KFC, and Greggs are trying to reverse the price hikes that have pushed more folks to dine at home this past year. While critics warn about the negative health impacts of such promos, industry experts say the deals are likely to continue for the remainder of this year.
- Street cred: Queen Street in Cardiff has been crowned the UK’s best high street, mixing quirky independents alongside the likes of Poundland and Ann Summers. The AmEx and GlobalData survey particularly rated its “easy transport links and lively vibe”. While Gloucester and Chester weren’t far behind, many high streets are struggling, leading the Federation of Small Businesses to shout for some serious sprucing up efforts.
Cash or card: shopper behaviour
What’s in and out of our baskets right now? With only a few brands seemingly bucking the slowdown in spending trend, 2024 continues to be a rollercoaster ride for retailers.
- Next level spending: Next has done it again, beating forecasts and raising profit targets for the eighth consecutive time. The upgrade comes as other retailers continue to struggle to recover from the cost-of-living crisis. Ted Baker is expected to leave the nation’s high street within weeks, and only a fraction of Carpetright stores are likely to be saved.
- Asda-saster averted?:Asda is in a spot of bother, and its co-owner Moshin Issa is throwing in £30 million to help get it back on track. With market share falling and sales down 5.9% in just 12 weeks, Asda is the only major supermarket losing customers. The injection will aim to boost staffing and improve customer service, but employees have yet to be convinced.
- Life in the luxe lane: Prada and watchmaker Richard Mille are defying the luxury sector slowdown with some stellar recent performances. Prada’s UK sales surged to £165.8 million, while Richard Mille celebrated a whopping dividend that has increased by CHF 181.4 million. Both brands are banking on creativity and desirability to prove that luxury can thrive even amid uncertainty.
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:
- Quick fix: We all want things done in a jiffy nowadays, so it’s no surprise that retailers are jumping on the express bandwagon. The latest to get involved is B&Q, which is set to give people access to over 600 DIY products through a new partnership with Deliveroo. The home improvement giant has also been testing delivery by robots to increase efficiency and convenience.
- Out in the cold: In its latest bid to cut its environmental impact, Aldi is set to remove plastic punnets and pulp trays from its multiple fruit and veg products. This is just one example of supermarkets trying to cut emissions, with Morrisons announcing plans to increase freezer temperatures after a study revealed food quality wouldn’t be impacted.
- Labour driving labour: According to the Office for National Statistics, about a quarter of working-age people in the UK don’t have jobs. To address this, companies such as Currys have called upon the new Government to reform the “stringent” rules around the apprenticeship levy. Already taking big strides in this space is Jet2, which recently doubled its apprenticeship fund to help attract new recruits to the travel sector.
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