Monthly Archives: April 2021

Over 17,243 companies entered insolvency in 2017, rising 4.2% year-on-year, according to The Insolvency Service
This was driven by an 8.3% rise in creditors’ voluntary liquidations (CLVs). In this companies sell off their assets in order to repay creditors.
According to a report the wholesale and retail industry reported as the third worst hit by insolvencies, seeing 2144 companies enter liquidation last year, a rise of 2.2%.
The sector was particularly vulnerable due to falling consumer spending warned by experts.
“Two sectors in particular are on high alert – retail and construction,” HW Fisher & Company’s insolvency partner Brian Johnson said.
Many high street brands suffered a poor Christmas amid lower levels of consumer spending and also continued Brexit uncertainity. The sharp slowdown in construction is putting extreme stress on building subcontractors – thousands are facing a large hit following the collapse of Carillion.
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According to latest IMRG Capgemini e-Retail Sales Index, a sharp drop in 2017’s figures to 2016’s 15.9% average growth.
In 2018, a forecast to slow down online retail sales again to a growth of 9% - the first time it has fallen into a single digit territory.
IMRG and Capgemini said the fall in annual growth is one of multiple indicators of a maturing online retail market. March and April months show notably stronger year-on-year growth when compared to 2016.
In addition, sales growth through smartphones averaged 77% every month from July to December 2016, but in the same period in 2017 it fell to 50% while the growth through tablets has only grew a meager 0.7%.
In 2018, it is forecast to slow down further in all the devices.
IMRG and Capgemini say the sales rates were consistent with three-year-bounce pattern of growth identified in the index. Peaks starting in 2010 and repeating in 2013 and 2016, so after 2018’s predicted slowdown, 2019

Federation of Small Businesses (FSB) published a survey according to which 14% of small businesses are now expecting to close or stop trading, with retailers among the least optimistic.
More than 75% reported rising operating costs over the first three quarters of 2017, while for the second time FSB’s confidence index dropped into negative territory in five years.
According to the survey report fall in profits are due to the inflation and wavering consumer demand which meant 41% of small businesses.
Nearly a third of companies expecting to continue their performance its downward trend in the next quarter.
“While the swift agreement of a transitional arrangement and an ambitious free trade agreement with the EU are absolutely critical, it’s spiralling costs, weak growth and flagging consumer demand at home that are front of mind for small firms day to day,” FSB chairman Mike Cherry said.

According to a report from KPMG/Ipsos Retail Think Tank, retailers going to brace for another tough year ahead as geopolitical and macroeconomic obstacles along with an increase in number of regulatory compliance issues and ongoing structural changes within the industry rear their heads.
The report emphasized that the key challenge will be the consumer spending in the upcoming year. Despite expectations that there will be an increase in wages in the second half of the year, the divide between food and non-food will be exacerbated over the coming six months. Thanks to rising inflation.
KPMG’s Paul Martin points to focus on consolidation, just like 2017’s Tesco/Booker merger which is likely to continue as the market share going to remain as a “core focus for businesses.”
More number of privacy and data protection laws coming into play next year, in the form of General Data Protection Regulation (GDPR). It might have a significant effect on retail sector

The Retail Sector Report submitted to the House of Commons Committee on Exiting the European Union, has been criticised by the BRC for not detailing the impact changes to our trade agreement with the EU will have in the future.

According to BRC policy adviser William Bain the report does not “provide any data or analysis at all on the future if the basis of the UK’s trading and commercial relationship with the EU changes”.

“The BRC has shown throughout 2017 the major implications there would be for consumers on prices, choice and availability of goods of a Brexit without tariff-free trade with the EU,” he added.

On prices, losing reciprocal tariff-free trade with the EU, may affect in raise in prices for food and other imported consumer goods.

On customs, consumers face delays on the supply of goods and without a deal to minimise non-tariff barriers. The retail industry would affect seriously on people without access to labour from the EU, with

It is expected that shops are likely to be more crowded with long queues than usual in many places across UK. Retailers to open shops as late as 11am and close as early as 4pm.
According to the Center for Retail Research, smaller stores with premises less than 3000sq ft may be the saving grace for last minute Christmas shoppers, as laws on Sunday trading hours are not applicable for them.
The Center for Retail Research also predicts the spending amount on Christmas Eve would surpass £105 million. Around 1.5 million shoppers expected to give convenience stores and garages a sales boost with last-minute food and gifts purchases.
In mean time, online retail giants such as Amazon, and high street stalwarts Debenhams and John Lewis are set to launch New Year internet sales on Christmas Eve and Christmas Day, offering discounts up to 66% forecast.
“More small shops than ever will open on Christmas Day,” Center for Retail Research director Professor Josh

According to trends observed by auditing firm PwC, retailers will run more promotional activity in the next seven days. It will overweigh the promotional activity that occurred during the Black Friday sales weekend at the end of November.
PwC consumer markets leader Lisa Hooker said “retailers are upping the ante on promotional activity this year in order to clear Christmas stock”.
Lisa Hooker also said that “As we rapidly approach Christmas itself, we are already seeing an uptick in promotional activity as retailers trying to attract customers through their doors and clear festive stock, in particular as last week’s snow and ice put a dent on high street footfall across large parts of the country”.
Last year, we surveyed online retailers out of which 98% had some kind of homepage promotion in the week before Christmas.
“While this year’s trend does not suggest we will reach the same levels, we are expecting to see more bargains for shoppers

In a case led by Coty, US cosmetics brand which argued that German retailer Parfümerie Akzente sold its goods on sites against Coty’s wishes. According to the European Court of Justice online market places detracted from the image of luxury brands.
The ruling said that Luxury brands have no contractual relationship with the online market places. According to which in turn are not required to comply with the brands’ quality criteria.
The criteria are imposed on all of its authorised distributors. It is under the terms of their selective distributive agreements.
According to the legal experts online market places have to direct contractual relationships with luxury brands in order to be able to continue to offer them on their platforms.
In the mean time, luxury department store retailers such as Harrods, Selfridges, Harvey Nichols and Liberty – as well as luxury brands that have direct-to-consumer sales points – observe a boost in sales as

The truck will initially pop up around the two cities many times a month, featuring one selected special deal per appearance with limited stock on truck. Once customers sign up to the Treasury Truck service, a text alert will be sent to the customers’, when the truck is in town and revealing that day’s special offer. After customers purchase a product in the Amazon app, to pick the item from the truck they can select a convenient time and place. The truck will be featured with be featured with celebrity appearances, interactive games, seasonal events along with on-the-spot prize giveaways. “We all remember the sense of excitement we felt as children when we heard the jingle of the ice-cream van, and we hope to bring that same feeling with Treasure Truck,” Amazon UK’s head of Treasure Truck Quick said. “Every product has been cherry picked, from must-have Christmas presents to jaw-dropping offers, ensuring Treasure Truck will turn an ordinary day into something a bit more

There are 15 accounts still at the top out of top 20 last time. The top three places remained same for the second consecutive year. Neil Saunders – now an expat, still influential within the UK retail community stays at 2nd position, sandwiched between Retail week at 1st position and its executive editor George MacDonald remains at 3rd position.

As far as newbie’s are concerned, there are 22 new Twitter accounts have been entered (or re-entered) the list this time, though you have to go down to number 40 in order to find first of them. Some are brand new and others were returned after a period of dormancy.

The interesting point in particular is that journalists and media outlets seem to have gained in twitter prominence over the last 18 months. Retail Focus has leapt 12 places from 17 to 5, Retail Gazette up by 2 at 6, and talking Retail climbs 12 places to enter the top 20 for the first time. In an era of “fake news”, more twitter users seeking reassurance by the