4 minute read
Leader - with Clare Turner
At the heart of retail
Also by Lema Publishing
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We’ve been subjected to more than a year of unprecedented restrictions but now, largely thanks to the Meanwhile, retailers’ costs are continuing to mount vaccination programme, an end is in sight on due to Brexit red-tape, July 19. Covid-related supply chain
At the time of writing, government ministers disruption, raw commodity seem pretty set on going ahead with the fi nal shortages and increased shipping and petrol easing of restrictions (although, as always, charges. Helen says the cost burden on retailers caution is being urged), paving the way for a may be passed onto consumers, threatening further opening of society - although the drive price rises as the pressure mounts in the months is still on to get as many people jabbed as ahead, especially with additional Brexit checks this possible. autumn.
And retail has moved further forward on Her views are refl ected by the experiences of the long road to recovery. British retailers leading toy executives interviewed in this issue. reported their third month of rising sales in Kate Gibson, MD of British toys and games June, according to the latest fi gures from ONS business Gibsons, confi rms that “costs are rising (Offi ce for National Statistics). across the board”. She says that whether it’s the
This news will be warmly welcomed by current freight situation and costs associated with toy retailers, who are still recovering from months of lockdown when they were unable to open their stores. “ container shipping or the price of raw materials, suppliers “will be navigating their way through this challenge for the foreseeable future”, adding “this
And as Helen Dickinson, also extends to retailers, as prices will chief executive of the British inevitably have to rise”. Gibsons turns 102 Retail Consortium (BRC) notes, this year and Kate admits that 2021 has the reopening of hospitality probably been the most challenging year has provided extra impetus of her career and one of Gibsons’ most for many consumers to hit challenging periods – but has also brought the streets, particularly as the opportunities for the company such as summer weather kicks in. She growing its website and understanding of says retailers are reporting the digital world. an increase in purchasing Gary Grant, founder and executive over browsing, suggesting chairman of The Entertainer, says: “The shopping trips are becoming very biggest challenge in the 40-year more purposeful. Consumer life of our business is Covid. We’ve just confi dence appears to be endured a period of huge upheaval rising fast, thanks to both the and it’s diffi cult to know where brickswidespread vaccination and and-mortar retail will level down to in a testing programme and the normal year. But one thing is for sure: extensive measures taken by our website won’t drop back to its preretailers. pandemic level. Therefore it’s important
But, as Helen points out, to invest…” challenges remain. Many In the words of KPMG Retail Partner retailers built up considerable Don Williams, retailers now face an debt - some of it from rent interesting few months as they assess payments - during the periods how they best entice their customers
of lockdown and will be ” back to stores and what the right blend relying on continued consumer of offl ine and online will be as spending demand to trade their way out. patterns settle in a post-Covid world. Those based in larger cities He predicts that with the prospect have also been hardest hit by the drop in of the full lifting of Covid restrictions coming footfall, as many city workers continue to work into force this month, there will be increased from home. competition for share of wallet as consumers
She adds that the changes caused by focus on those leisure and hospitality activities the pandemic are being bolstered by a that have been denied to them due to lockdown. fundamental transformation in consumer It is a summer that starts with cautious optimism behaviour, which started long before Covid. for many toy retailers, who will be hoping that the Internet sales continue to rise, albeit at a continued success of the vaccine rollout and an reduced pace, supported by the massive improving economy will offer scope to spark a big investment in digital channels, logistics surge in consumer spending. operations, and click-and-collect options, So, what’s been your trading experience, as a ensuring UK consumers continue to benefi t toy retailer or supplier? I’d love you to get in touch from a world-leading shopping experience and share your story. You can connect with me whether they are in their homes or on their via LinkedIn or email me at clare@lemapublishing. high streets. co.uk. I look forward to hearing from you!
