Tag Archives: pandemic

Retail warns of “revenue-crushing” impact on sector should click-and-collect ban spread

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The British Retail Consortium and Scottish Retail Consortium have warned that the curb on non-essential click and collect services could prove ‘disastrous for an already beleaguered retail industry,’ with far wider implications for the UK’s retail sector should the ban widen.

The warning has been issued since yesterday’s breaking announcement that Scottish first minister, Nicola Sturgeon was to impose a ban on non-essential click and collect services for shops across Scotland.

It followed plans detailed by John Lewis Partnership to halt its own click and collect services across the UK in a bid to help the government drive down non-essential travel.

Both moves have been met with disappointment by the retail industry who has united in voicing concerns over the impact it would have on the sector, should the ban spread UK-wide. Until now, retailers have relied on their click and collect efforts to weather a relentless storm of lockdowns and social restrictions that have heavily impacted footfall and business as customers turn to online shopping.

Click and collect services of the non-essential retailers have been their life-line and, in many cases, their last remaining link to local communities, themselves driven to spend more with online giants such as Amazon.

Tom Ironside, director of business and regulations at the British Retail Consortium, said: “Click and collect is used by a wide array of companies and allows the public to get many of the goods they need in a safe, convenient and timely manner.

“Retailers have implemented systems to ensure people are kept safe while queueing and collecting goods, and we have seen no evidence to suggest otherwise.

“Preventing people using click and collect services would harm the viability of many retailers, already suffering under lockdown, as well as severley limiting the choice for some consumers.”

David Lonsdale, director of the Scottish Retail Consortium has called the restrictions now set to come into force from Saturday, January 16th as “revenue crushing”.

“The situation with the pandemic is fast moving and we fully recognise government wants people to stay at home. However, these further revenue-crushing restrictions and the fresh complexity they bring, together with constant chopping and changing to the Covid Strategic Framework, are disconcerting and come at an incredibly difficult time for retail.

“Firms operating click and collect or food to go takeaway have taken every reasonable step to make their operations as safe as possible, complying with every twist and turn to government guidance and often at pitifully short notice.

“They have demonstrated they can operate safely and have invested significantly to make their premises Covid-secure, and it appears no evidence to the contrary has accompanied this announcement.”

 

Games Workshop valued at £3.8bn as hobby demand fuels its latest sales surge

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Games Workshop, the British firm behind the wildly popular Warhammer tabletop miniatures gaming franchise, has reported blockbuster sales and profits driven by the stay at home messaging of the last year and the surge in the hobbyist and gaming markets.

The company’s chief executive, Kevin Rountree has billed its 2020 results as “another cracking performance from a truly amazing global team”, as it rang in sales of £186.8 million and a profit of £91.6 million for the six months to November 29th, 2020.

The results outstripped the estimated figures, equating to around a 25 per cent surge in sales and a leap of 53 per cent in profits year on year. Games Workshop is now valued at £3.8 billion on the stock market – £1 billion more than Marks & Spencer.

The group managed to turn around the initial impact of the Coronavirus pandemic that saw Games Workshop stores closed during the UK’s first lockdown period last year. Most of the group’s 529 shops around the world have been closed, causing some initial concern over how it will reach its active customer base over the course of the year.

A surge in demand for the hobby market, and a particular rise in board gaming and the gaming sector, as well as the lean into online shopping saw Games Workshop’s online sales grow by 87 per cent. To meet customers in the digital space, the group also hosted a series of live-streamed online preview events to showcase new products and its own team of creatives.

Covid-19 has delayed production on some of Games Workshop new releases, such as titles like Death Guard Codex and pieces for the Age of Sigmar franchise, however the firm has promised fans that these will go on sale fortnightly from next week.

Chief executive Rountree has commended the global team for the success of the Games Workshop brand over what has been a challenging year for the retail sector overall, and has said that the company will continue to “focus on what is in our control” as it builds upon the success over the coming months.

“Like every other company we have our internal plans as to our future performance, which show a range of outcomes which are not shared with the stock market; predicting the future is always a risky business,” he said.

“We will focus on what is in our control; delivering on our operational plan rather than worrying about, for example, any short term share price or the weather.

“Our biggest risk is senior management becoming complacent, I will continue to do my best to ensure that does not happen.”

Looking to the months ahead, Rountree gave little away: “Like every other company we have our internal plans as to our future performance, which show a range of outcomes which are not shared with the stock market; predicting the future is always a risky business.”

“We will focus on what is in our control; delivering on our operational plan rather than worrying about, for example, any short term share price volatility or the weather.”

Perhaps referring to the garlands it receives in the retail and games industry for its stellar success around the world, he added: “Our biggest risk is senior management becoming complacent. I will continue to do my best to ensure that does not happen.”

Chancellor details £4.6bn relief package for retail, hospitality, and leisure as England enters third lockdown

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Chancellor Rishi Sunak has detailed a £4.6bn relief package for the retail, hospitality, and leisure sectors that will offer UK businesses a one-off grant worth up to £9,000.

The measures were announced this morning, following a public message from Prime Minister Boris Johnson last night that England is to enter a full lockdown period for a third time in the ongoing fight against the coronavirus pandemic and the latest developments surrounding a new strain of the virus here in the UK.

The payments, detailed by the chancellor on Tuesday, January 6th, are expected to support 600,000 business properties across the UK. A further £594 million will be made available to councils and devolved nations to support businesses not covered by the new grants.

Sunak said: “The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

“Throughout the pandemic, we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the spring. This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they able to reopen.”

The third national lockdown will once again see the closure of all retail, hospitality, and leisure facilities deemed non-essential. A lesser blow to the toy industry than the previous national restriction measures imposed in the build up to the Christmas shopping period, its impact will still likely be felt across the indie retail network.

The cabinet secretary, Michael Gove, this morning said that he hoped the gradual lifting of restrictions could begin mid-February, but that the time it will take for the vaccines to take effect meant it was likely to be at least another couple of weeks before measures could start to be eased.

It is likely the measures will be in place until March this year.

“We can’t predict with certainty that we’ll be able to lift restrictions the week commencing February 15th,” he told Sky News this morning. “What we will be doing is everything we can to make sure that as many people as possible are vaccinated so that we can begin progressively to lift restrictions.

“I think it’s right to say that, as we enter March, we should be able to lift some of these restrictions – but not necessarily all.”

School closures of course mean that children will now be spending time at home, offering up more opportunity to the toy industry to capitalise on the need for home learning resources and toys. Many independent retailers are already primed for yesterday’s news, having implemented click and collect and delivery services throughout the course of England’s lockdown throughout the spring/summer of 2020.

Emoji Company partners with Vistaprint to launch new face masks range and support businesses in the US and Canada

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The Emoji Company has partnered with Vistaprint to produce a new line of face masks featuring some of the most recognisable Emoji brand icons. Ten per cent of the total sales made by the masks will be donated to help empower small businesses across the US and Canada.

To date, Vistaprint has raised more than $5million in cash and in-kind product donations to support small businesses through its mask sales.

Available in the United States and Canada, the Emoji collection features a variety of designs including some of the most popular Emoji brand icons giving consumers plenty of options to choose from.

“We are excited to be launching this playful collection of masks in collaboration with Emoji- The Iconic Brand that will bring some light and fun to people’s everyday attire,” said Vistaprint’s North America market director, Erin Shea.

“We use digital icons every day to express ourselves on social media, in text conversations, and emails. Self-expression is important and we believe that a mask should not limit a person’s ability to express themselves. Our mask design partnership with the emoji® brand is one way we’re helping people do just that.”

Vistaprint’s RFS masks have a three-dimensional chin structure, a bendable nose bridge, and adjustable straps to give your reusable face mask the perfect fit all day long. Designed with wearability in mind, the masks are available in a wide range of colors and prints for both adults and children. Sold separately in packs of ten, filters can be inserted into the RFS masks. Each filter can be used for up to 12 hours.

“With face masks such an important part of daily life, we welcomed the opportunity to partner with Vistaprint for high quality face masks that empower consumers of all ages to express themselves in unique and fun ways,” said Marco Hüsges, CEO and founder, the emoji company.

Aardman teams with Circa Contemporary Circus to bring Shaun the Sheep’s Circus Show to Queensland

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The multi-award winning UK animation studio, Aardman, has joined forces with the performance company Circa Contemporary Circus to produce a new circus-theatre production called Shaun the Sheep’s Circus Show.

The world premiere season of the new show will be held in Queensland, Australia’s QPAC’s Lyric Theatre, scheduled in for March 2021. It marks a major win for the arts community that has struggled through a lengthy shutdown at the hands of the coronavirus pandemic.

Premier Annastacia Palaszczuk, said: “Thanks to the way Queenslanders have managed the coronavirus pandemic, we’re now able to return  to the theatre. Today’s announcement is a great win for Queensland, not only for our arts community but also for our economy as we continue to rebuild from the pandemic. 

“Shaun the Sheep is a global phenomenon. It’s great to see Circa – one of the state’s most successful performance companies -premiere this show here in Queensland. The arts industry employs thousands of people throughout the state. World class productions like this will help this sector to recover from the impact of COVID-19.” 

Minister for the Arts Leeanne Enoch said Shaun the  Sheep will be able to play to full houses and engage the young and the young at heart. 

“Shaun the Sheep is a family favourite throughout the  world and to have this production here is a fantastic win for Queensland,” Enoch said. 

“The arts, cultural and creative sector plays a crucial role  in our COVID-19 recovery, bringing our communities back together and supporting jobs for artists and arts  workers. That’s why the Palaszczuk Government is implementing  nearly $60 million worth of measures to support the sector through the impacts of COVID-19 including the $22.5 million Arts and Cultural Recovery Package. 

“The Palaszczuk Government will continue to invest  in arts and cultural projects to support Queensland’s social and economic recovery.”  

Shaun the Sheep’s Circus Show is being supported by the Queensland Government through a unique three-way partnership, comprising investment from  Screen Queensland, Arts Queensland funding via the Queensland Arts Showcase Program and QPAC as the Presenting Partner. 

Local shops will be able to trade 24/7 over Christmas and January to recoup lockdown losses

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The government is to allow local shops to trade around the clock in a move to support the retail industry and its bid to recoup some of the losses it has suffered during the pandemic, a cabinet minister has said.

Communities secretary, Robert Jenrick has said he wanted to remove the bureaucracy involved in enabling retailers to trade beyond the hours of 9am to 7pm, and is “issuing an unambiguous request to councils to allow businesses to do so.”

Retailers normally have to go through a lengthy and time-consuming process to apply to local authorities under the Town and Country Planning Act if they wish to extend their trading hours. However, in light of the sweeping closures across the country at the hands of the coronavirus and restrictions, the government is ready to remove the barriers and allow shops to open for up to 24 hours a day in December and January.

Writing in the Daily Telegraph, he said: “With these changes local shops can open longer, ensuring more pleasant and safer shopping with less pressure on public transport.

“How long will be a matter of choice for the shopkeepers and at the discretion of the council, but I suggest we offer these hard pressed entrepreneurs and businesses the greatest possible flexibility this festive season.

“As Local Government Secretary I am relaxing planning restrictions and issuing an unambiguous request to councils to allow businesses to welcome us into their glowing stores late into the evening and beyond.”

Recent research from the Local Data Company has revealed that a record number of shops closed during the first half of 2020 due to the coronavirus lockdown. The Retail Gazette reports that a total of 11,000 chain operator outlets shut between January and August this year, while around 5,000 shops opened. The net decline of 6,000 is almost double the drop during the same period last year.

Rise in shoppers planning to stay local this year, as “support for indies has never been so important”

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With the Prime Minister’s confirmation that all non-essential shops will be able to reopen across England when the nation-wide lockdown lifts on December 2nd playing like music to many a retailer’s ears amid the essential Christmas shopping period, independent toy shops are rallying the message that ‘shopping local has never been so important.’

A still self-isolating Boris Johnson made the announcement to the House of Commons via a video link yesterday afternoon, confirming that retailers who have been deemed ‘non-essential’ will be able to open their doors to Christmas shoppers in time to meet the crucial golden quarter sales. The PM stated that as the lockdown lifts, a stricter and more stringent three-tier system will be put into place across the country.

The confirmation has arrived as a note of assurance to an independent toy retail scene who had – widely speaking – felt ‘stitched up’ by the numerous loopholes that others had managed to negotiate in order to remain open under the ‘essential retail’ banner, and subsequently capitalise on the current demand for toys and games. It was a general mood that provoked the British Toy and Hobby Association to pen an open letter to Number 10 imploring Johnson to offer assurances to the trade.

Yesterday’s confirmation has been welcomed by bodies such as the British Retail Consortium and independent retailers across the country, who see the move as a silver lining as they prepare now for the all important Christmas shopping season. However, there’s no illusion that it will be an easy ride, and more than ever, they say, it is important to promote the message of #shoplocal.

Small Stuff, an award-winning, independent eco-conscious children’s lifestyle store and community space was invited on to Times Radio as Johnson made the announcement to talk about what this now means for the country’s independent retail scene.

In a tweet posted last night, the retailer stated: “Positive news that we can reopen on the 2nd Dec. We will be opening safely with plenty of measures in place. The message of #shoplocal has never been so important – support us if you can.”

A new research paper created by Visa in partnership with the Centre for Economic and Business Research, however, suggests that the mountain retailers now face this quarter, may not be quite so treacherous after all. The socio-economic paper nopw suggests that as many as four in five Brits plan to support local businesses as much, or more than, before the Covid-19 pandemic.

The research – launched alongside Visa’s Where You Shop Matters Christmas campaign (one that champions Britain’s local, independent businesses for a third consecutive year) – suggests that 54 per cent of British consumers plan to do some of their Christmas locally this year, whether that is online or in store. Three in five consumers are concerned that independent businesses will not survive if their local community does not back them through this time.

Visa and CEBR go on to state that for every £10 spent with local businesses, more than a third stays within the local area. When it comes to customer intentions this Christmas, Brits currently spend just over one fifth of their money locally, but will be willing to spend half with local independents this year.

What’s clear is that the impact of the pandemic this year has given rise to the ‘altruistic customer’, a term coined by BRC chief executive Helen Dickinson in reference to the shopper who intends to spend more with local retailers this year in show of support of the community.

At the same time, she stated, it has ‘accelerated the importance of “social purpose” of the retailer.

Speaking on the latest developments and the announcement of shops reopening on December 2nd, Dickinson said: “Shops – from high streets to retail parks – play an integral role in the run-up to Christmas.

“While retailers have stepped up their online delivery over the course of 2020, the bulk of Christmas shopping tends to be done in store. The Government’s decision to keep all of retail open will help to preserve jobs and the economy and help keep Christmas a festive occasion for everyone.”

 

Shoppers fuel sales growth in October but BRC warns that lockdown easing by December “is vital for survival”

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Shoppers taking the opportunity to stock up on home comforts and food supplies ahead of the England-wide lockdown helped total retail sales increase 4.9 per cent in the four weeks to October 31, indicating some respite for the UK retailer hampered by coronavirus restrictions this year.

Despite the lift – one that measures in immediate contrast to the 0.3 per cent decline in the same period the year prior – KPMG has warned that the “gap between winners and losers” this year will be ‘stark’. It has said that while online sales remain high and are set to grow further during Black Friday and lockdown, not all retailers are in a position to adapt.

According to the British Retail Consortium-KPMG Retail Sales Monitor, UK retail sales, excluding temporarily closed stores and including online sales, increased 5.2 per cent on a like for like basis. Non-food items fell nine per cent and 11.4 per cent in like for like and total terms respectively – but this is an improvement from the 12-month average decline of 19.6 per cent.

while Helen Dickinson, BRC chief executive has hailed October 2020 as a month of strong sales growth for the UK, it has come with a caveat.

“Tightening restrictions across the United Kingdom and speculation towards the end of the month of an England-wide lockdown prompted customers to stock up on home comforts and food supplies,” she said. “During an incredibly challenging year for the industry, many retailers had finally thought that they were finding their footing.

“The new lockdown in England will now throw away this progress as we enter the crucial Christmas trading period, and we estimate that £2 billion of sales per week will be lost this month.

“It is therefore vital that retailers are able to trade from December 3 and we are asking government to urgently provide clarity about the criteria for reopening and to ensure that affected businesses are supported in the coming months.”

KPMG retail partner Don Williams, added: “The gap between winners and losers is stark with home-related items, like furniture and technology, putting in a strong performance while the improvement in fashion sales was short-lived. Online sales remain high and are set to grow further during Black Friday and lockdown.

“Not all retailers are in a position to take advantage of this shift in customer behaviour, which has been accelerated by circumstance and for many is now both choice and habit.

“The important Golden Quarter is likely to be unrecognisable this year, with some retailers losing a month’s worth of trading opportunity.

“Capacity is also likely to be a significant challenge over the coming months as there is a limit to online delivery availability and social distancing has reduced the numbers of customers that can safely shop in store at any one time.

“Some retailers will thrive in the new environment; others will find it bleak. The locked-in step-up in online activity will undoubtedly lead to further investments in digital capability and partnerships.

“Digital strategies have never been more vital, but those strategies must be cost-efficient, too.”

Spring Fair 2021 cancelled and replaced with Spring Fair @ Home virtual event

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Hyve Group has confirmed that Spring Fair 2021 is cancelled.

In line with the latest UK Government restrictions on the reopening of business conferences and exhibition halls, the show’s organisers have announced that Spring Fair will not be taking place in 2021. The home and gift retail show traditionally takes up a February slot, but has been cancelled due to the ongoing pandemic crisis.

The next planned home, gift and fashion retail event will be Autumn Fair, together with Moda, at the NEC Birmingham on 5th-8th September 2021, while Spring Fair will return as an in-person event, 6th-10th February 2022.

Hyve and the team behind Spring Fair, JWF, Glee at Spring Fair and Moda are now working to deliver an enhanced virtual forum with product features and exclusive seminar content designed to educate and inform participants.

More information on Spring Fair @Home will be available on the Spring Fair website, while Fashion Together can be found on the Moda website in due course.

Julie Driscoll, managing director, UK Retail, said: “While it is regrettable that we won’t be able to meet in person at Spring Fair and Moda in February due to the new UK government rules, we are incredibly excited to host Spring Fair @Home and Fashion Together.

“Following the success of this year’s virtual forums, we’re looking forward to providing our clients and customers another touchpoint to be inspired and stay connected with the retail industry.”

Ian Taylor, managing director, NEC Group Conventions and Exhibitions, added: “We’re saddened to not be welcoming the retail community to the NEC for Spring Fair in February 2021, but are pleased to hear that retail professionals and suppliers will still have an opportunity to connect with each other in early 2021, albeit in a virtual environment with Spring Fair @Home.

“We look forward to welcoming everyone back to the NEC in person for Autumn Fair and Moda in September 2021, with Spring Fair itself returning in February 2022.”

Spring Fair continues to provide exclusive webinars, industry news and product updates that keeps the home and gift retail community informed, connected and inspired on The Community hub.

Sainsbury’s to close 420 Argos stores amid plans to save £600 million by 2024 and meet changing consumer habits

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A total of 420 standalone Argos stores are to be closed by March 2024, the super market giant and owner of the Argos store brand, Sainsbury’s has confirmed, amid news that it is to cut 3,500 jobs across its portfolio.

The retail giant’s boss Simon Roberts said that the move was Sainsbury’s response to changing consumer habits and the growth of online shopping. Amid the closures will be all of Sainsbury’s meat, fish and deli counters owing to lower customer demand and a desire to cut food waste.

Of its Argos portfolio, the grocer has stated that 150 outlets will be opened within its supermarkets, but that by the end of its restructuring, which will see the permanent closure of 420 standalone outlets, its total number of Argos stores will be around 100. The restructuring will save about £600 million by 2024, the firm said.

Sainsbury’s suffered a £137 million loss in its half-year results, a dive it has blamed on closures and market changes.

The company, which bough Argos in 2016, said in its statement that the 120 standalone Argos stores that had not reopened since they were closed in March would now be shut permanently.

In addition to the 150 Argos stores it plans to open in its supermarkets by 2024, it also plans a further 150-200 collection points.

“We are talking to colleagues today about where the changes we are announcing in Argos standalone stores and food counters impact their roles,” said Simon Roberts, Sainsbury’s chief executive.

“We will work really hard to find alternative roles for as many of these colleagues as possible and expect to be able to offer alternative roles for the majority of impacted colleagues.”

He said the aim was to make Argos “a simpler, more efficient and more profitable business”. Products from the Habitat brand will also be more widely available in the stores and via Argos.

“Our other brands – Argos, Habitat, Tu, Nectar and Sainsbury’s Bank – must deliver for their customers and for our shareholders in their own right,” he said.

Despite the cutting of the 3,500 roles, the supermarket expects that it will have created about 6,000 net new jobs by the end of the year.