6 minute read
Retailer Round-up
Inset:: Next now expects full year sales of £4.6 billion.
Shop fronts
From better than expected Christmas sales through to new collaborations and predicting trends, the UK retail landscape has kicked off the New Year with some solid activity.
Primark reaffirms UK commitment
Primark has reaffirmed its commitment to UK retail, with plans to invest £140 million over the next two years in its UK store estate. This will include the opening of at least four new stores in Bury St Edmunds, Craigavon, Salisbury and Teesside Park. The investment creates at least 850 new jobs and increases selling space by more than 160,000sq ft, in a boost to local shopping areas. Alongside the new stores, Primark will extend and invest in existing stores and will relocate its stores in Bradford and High Wycombe to higher profile locations. In response to the growing popularity of its Home range, a second dedicated Primark Home space will open in its Liverpool store, following on from the success of Primark Home in Merry Hill, West Midlands. This investment builds on the launch of the retailer’s Click + Collect trial. As part of Primark’s commitment to create a great in-store experience for everyone, it will refurbish and upgrade stores on high streets, shopping centres and retail parks. “The UK is our biggest market and, as we continue to grow and expand our business internationally, we remain as committed as ever to investing in our stores to offer more customers our great value clothing, beauty, homewares and much more,” commented Paul Marchant, chief executive of Primark.
Inset: Primark is investing over £140m over the next two years in its UK store estate.
Next has reported a 4.8% rise in full price sales for the nine weeks to 30 December 2022, saying that sales during the Christmas period were better than it had anticipated.
The retailer – which rescued Joules from administration at the end of last year – had previously guided for a 2% fall in sales over the Christmas period. Instead, both online and retail stores sales “exceeded full price sales expectations”, with retail increasing 12.5% compared to the prior year. Next said that it thinks it underestimated the negative effect that Covid was having on its retail sales last year, as well as underestimating the effect improved stock levels would have on both businesses.
The retailer now expects full year sales of £4.6 billion, up 6.9% on the year before, and for pre-tax profits to increase 4.5% to £860 million against the £840 million it pencilled in last November.
However, Next has also sounded a note of caution that the year to January 2024 would be tougher as the cost of living crisis bites, offering a guide for pre-tax profits to fall 7.6% to £795 million on sales 1.5% lower.
DFS and Cath Kidston team for collaboration
DFS has teamed up with lifestyle brand, Cath Kidston on a new range of beds, sofas, accent chairs, chaise longues and footstools.
Each of the pieces has been designed to ‘bring a pop of colour and joy’ into any room, according to the two companies.
The new collection features re-mastered signature Cath Kidston prints including Forever Rose and Endless Love, together with the brand’s latest print designs, developed and hand-painted by creative director Holly Marler, such as Strawberry Garden, Painted Kingdom and Summer Birds.
“Our exclusive collection with Cath Kidston is a match made in heaven and is the epitome of British quality design and craftsmanship,” commented Kellie Wyles, head of upholstery at DFS. “We’re continuing to draw inspiration from previous eras to bring a sense of comfort and nostalgia into our homes, and this collection, complete with the iconic Cath Kidston pattern fabrics, puts a fresh spin on traditional design influences.”
Harrods named most popular department store
New data has shown that Harrods took the top spot in a survey to find the most popular department store, with Selfridges coming in second place and New York’s Macy’s in third. Findmycasino.com used three metrics to determine the top department stores, including the Above: Harrods finished average global Google search above both Selfridges and Macy’s. volumes, along with Instagram hashtags and TikTok views. Harrods scored 10 out of 10, with 134,000 people per month Googling the store. Shoppers have thus far uploaded 1.5 million images of the retailer on Instagram. Selfridges took second place, with 9.49 out of 10. Google searches for the retailer averaged 109,000 per month, but it is loved on TikTok, with over 47 million views on the platform. Macy’s is the largest department store in the US, and despite having lower Google search rankings, the store receives over 1.2 million hashtags on Instagram and 2.3 billion views on TikTok.
Mamas & Papas reports record Christmas
Nursery retailer and brand, Mamas & Papas reported a sales increase of 16% year-on-year for the eight weeks to 25 December 2022.
The retailer saw its best ever trading day on 25 November – Black Above: Mamas & Papas Friday – when 30 of its 52 stores set new sales records. is planning more concessions with M&S and Next in 2023.
Store-based sales increased by
27%, due to both double-digit like-for-like sales, and new store openings.
The brand said it plans to continue its expansion in 2023 with more concessions with Marks & Spencer and Next. 17 new concessions opened across the two retailers in 2022.
“We’re delighted to be reporting such a strong performance as we head for a record-breaking financial year,” commented Mark Saunders, chief executive. “Despite the ongoing cost of living challenges for many customers, we’re continuing to see the resilience across all product categories in the nursery market, where we’re now achieving a 17% share.
“We’re also developing new brand partnerships and product launches while increasing investment in our communities and colleagues through our ESG agenda.”
ASOS predicts trends for Gen Z in 2023
Design experts at ASOS have unveiled their predictions for the top five trends in 2023 for Gen Z – with the 2029 demographic set to take their inspiration from Ariel, Barbie and Ken and Noughties icons.
Film and music stars are expected to have a big influence on fashion this year. Avatar: The Way of Water and The Little Mermaid could drive appetite for sheer and ethereal dresses and tops, while the release of the Barbie movie will see bright pink featuring again.
Gen Z favourite Olivia Rodrigo is due to release new music in 2023, with ASOS predicting that her love of grunge and 1990s’ fashion will be a source of inspiration, alongside Zendaya and Wednesday star Jenna Ortega.
Ballet core is tipped to grow its popularity – with pastel tones of greys, nudes, creams and white driving looks that feel feminine yet functional.
Catwalks have seen a resurgence of Noughties denim brands such as Diesel, while double denim is a key look. Finally, traditional trainers are back, with sales particularly strong for Adidas Samba and Gazelle styles.
