TCS Retail Sector Update – July 2018
In June, retail footfall was down 0.9% overall. Retail parks saw a decline of 0.4%, whereas shopping centres experienced a decline in footfall of 3.4%. The ONS revealed a surprise fall in retail sales in June from clothing stores and other non-food retailers due to reduced footfall amid the hot weather and World Cup celebrations. Conversely, stronger sales were seen of food, drink and barbecues across the country. The total volume of goods sold across the whole of the retail industry dropped by 0.5%, compared to May.
Last month, Missguided teamed up with reality show Love Island to style the contestants, giving viewers the ability to shop the looks online via Love Island’s app. Users were able to shop for the exact outfits worn on the show, and for similar-looking items. This concept highlights a potentially new benchmark in fashion retail where consumers can seamlessly purchase the clothes they see on TV. Missguided also have the resources to take a product from concept to sale in one week, further highlighting their efficiency.
Intu has been investing their offering with an increased amount of experiential opportunities. One of these is their partnership with Mazda – they will be offering virtual test drives in five of their shopping centres in the UK throughout July and August. The experience will include a VR test drive of either the MX-5 or the CV-5. Using VR goggles, participants will be transported inside the car to a virtual drive around the Longcross test track in Surrey or the Italian Alps.
Intu also ran a one night only dining concept called Intu Supper Club where guests were invited to dine at the centre for a night. The experience was in partnership with a Norfolk restaurant, with chefs at the centre allowing diners to watch their food being prepared. Intu is planning to use this as a model for a series of unique dining experiences based at Intu shopping centres across the UK.
City- specific retail
Nike has opened an experimental pilot store in LA, where the products and services available are based on the preferences of the community. In addition to their regular stock of training, running and sportswear attire, “city-specific” items based on an analysis of Nike’s local e-commerce data will also be in store. Nike plan to open more of these stores across the world, with their Tokyo store launching in 2019.
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Junior Media Planner/Buyer