The Goods UK: Checkout vs Chancellor
Welcome back to The Goods UK! This week we’re chatting about Budgets, bikes and bond markets.
Fun stats of the week
- £382m: The amount dog owners are set to spend on their pampered pooches this Christmas (Wales Online).
£14.5bn: The amount Lidl claims to have boosted the British economy by in 2024 (The Grocer) .
A “mixed bag Budget” – The sector’s rection
- There’s been no escaping talk of the ‘B’ word this week and it’s fair to say there’s been a sundry response, with currency and bond markets “choppy” but not “dramatic” (The Guardian). Consumer sector experts have warned this Budget means more rough seas ahead, however.
- Many have argued the Budget represented somewhat of a “missed opportunity” to help stimulate growth in both the retail and hospitality sectors. Helen Dickinson, chief exec of the BRC said: “[it] fell short of the bold action needed to secure the long-term future of our high streets and mitigate the inflationary pressures”, adding “many felt the Chancellor should have gone further”, beyond the 5p business rate change she announced.
- The CEO of the Retail Trust, Chris Brook-Carter added, “it remains to be seen whether today’s Budget will do enough to reassure the UK retail industry days ahead of the busiest shopping period” (Talking Retail). The leader of the Night Time Industries Association, Michael Kill, was even more downcast as he suggested the pressure on both operators and consumers is now “completely unsustainable”(MCA).
- Things were cheerier in grocery as shares in Britain’s major retailers all climbed on Budget day as the measures announced were “not as bad as feared” (Reuters). The amendments made to the so-called sugar tax were also well received, as the FDF CEO Karen Betts confirmed, “we’re pleased the government has listened to the industry” (The Grocer).
Cash or card: shopper behaviour
What’s in and out of our baskets right now? This week, it’s all early Christmas prep, cycling and September jollies.
- Never too early: Christmas is creeping forward in the calendar, with 14% of Brits starting their shopping in August. Affluent shoppers are front-loading spending – with 42% beginning in October, up from 25% – suggesting rising caution and a focus on budgeting. Under-30s tend to go the earliest, women lead men by miles, and the North East’s racing ahead while Yorkshire holds out until the wire (Retail Week).
- Pedal power: Cycling is back in the fast lane, with bike sales up 9% this year at Halfords, helping the retailer power past slow motoring demand and lifting first-half revenue up by more than 4%. Warm spring weather and a late Easter gave two-wheelers even more spin, and the retailer says momentum will continue into the new year (Daily Mail). With Rachel Reeves leaving the Cycle to Work scheme unchanged this week, all signs suggest Britain’s bike demand is going nowhere fast (BikeRadar).
- September is the new summer: Sun-seekers without kids are ditching July heatwaves and school-holiday chaos in favour of cheaper, cooler escapes in September, with Abta reporting a jump in child-free travel. The data shows that 25% of under-45s now book for September, up from 17% last year, rising to 37% for older couples. Meanwhile, Gen Z is hopping on trains and coaches like it’s 1983, cruises are booming in every ocean, and younger millennials say holiday purchases matter more than anything else (The Telegraph).
Making moves: industry changes & innovation
ICYMI, industry icons are reinvigorating their brand through unique and creative ways. Here are some movers and shakers that you should know about:
- Runway Rebooted: The catwalk is coming to the couch, with the world’s first AI-driven catwalk set to debut next February (Fashion United). The immersive show, using AI-generated models, will allow attendees to become co-creators. Through Google Cloud technology, at-home audiences will be able to instantly shop runway looks, including those from participant Topshop.
- Gotta collect ‘em all: Home deliveries won’t be left out in the points-collecting cold, with Sainsbury’s the latest retailer to expand its loyalty programme to purchases made on Deliveroo (The Grocer). 24 million Nectar members will now be able to integrate their points across in-store and delivery platforms, following similar moves made by Co-op, Morrisons and Boots earlier this year. With 97% of UK shoppers on at least one supermarket loyalty scheme, let the points-maxxing commence.
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