THE MIRROR OF MEDIA

Retail bounces back in Q2: how marketers can make the most of it


Final week the ONS confirmed what commentators had predicted since April: retail is again.

Non-essential retail shops reopened on April 12 after greater than three months in hibernation, and buyers eagerly reacquainted themselves.

Quarter-on-quarter, and even year-on-year, comparisons veer from barely to thoroughly redundant given the lockdown hokey cokey within the UK, but when set towards efficiency from 2019, Q2 2021 was nonetheless outstanding.

Consumers wish to store

Throughout the worst of the pandemic e-commerce was a lifeline to customers and companies alike as they tailored to their respective circumstances, and it gained the column inches it deserved for progress throughout this most tumultuous of intervals.

Nonetheless, when retailers are open that is the place customers are opting to spend:

After all, that is extra pronounced in some sectors than others: the proportion of retail spend in grocery doubled within the preliminary ‘panic’ section of the primary lockdown, however has declined since and plateaued at 10% of spend within the class. In the meantime e-commerce represents 30% of all spend within the clothes sector, however this too has flatlined since shops reopened.

The opposite level value contemplating is that it’s not simply which channel the spend comes from, however how a lot that spend is.

We aren’t but seeing footfall return to pre-pandemic ranges as residual warning persists, however in-store spend has exceeded benchmarks from the identical pre-pandemic interval: spend per go to is growing.

The dormant, latent, pent-up spending energy that customers have accrued after 18 months of prudence is being unleashed, nevertheless it gained’t final eternally.

Because the furlough scheme winds down within the autumn, the monetary realities of the pandemic will start to trickle via through retailers and elevated inflation to customers at a family degree.

This summer time is the time to make hay whereas the solar shines for retailers, and to reassess what a ‘new regular’ actually appears like for your small business, your buyers and the best way – or methods – they may have interaction and transact together with your model.

Alex Wright, international perception director at Blis.



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