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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April13,2017
1) Britishconsumersspentanestimated£775millionlastyearonEaster-relatedproductssuchasfoodandbeverages,chocolates,greetingcards,decorationsandflowers.WeestimatethatBritswillspendaround£500milliononEasteritemsatfoodretailersalonethisyear.
2) EasterSundayfallsrelativelylatethisyear,onApril16,whichistwoweekslaterthanin2016.AlateEastertendstocoincidewithwarmerweather,whichboostsspendingonDIY,outdoorlivingandseasonalapparelcategories.
3) Thisyear,morefamiliesarelikelytopurchasefoodandbeverages,sweetsandflowersfromgrocerydiscountersAldiandLidl.
4) OurstorechecksrevealedthatretailersasdiverseasAldi,TescoandJohnLewisaremakingthemostoftheoccasionthroughin-storecampaigns,merchandisingandselectedpromotions.
UK Easter Retail Preview
2017
Deborah Weinswig
Managing Director,
Fung Global Retail & Technology
[email protected]
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April13,2017
OverviewofUKEaster2017Thisyear,EasterSundayfallsrelativelylate,onApril16,whichistwoweekslaterthanin2016.GoodFridayfallsonApril14,andtheholidayweekendlastsuntilApril17intheUK.EastercanfallonanySundaybetweenMarch22andApril25,asitisdependentonthelunarcycle.
Inthisreport,weoutlinetheprospectsforretailspendingforEaster2017intheUK.Ourprincipalfiguresregardspendingfortheholiday,notspendingoverthefour-dayholidayweekend,thelengthofwhichrepresentsasecondarygainforretailers.WealsofeaturehighlightsfromourrecentstorechecksinLondontoseewhatEasteritemsretailersarepromotingthisyear.
WhatDoConsumersSpendonfortheEasterHoliday?AccordingmarketingagencySavvy,Britishconsumersspentaround£775milliononEaster-relatedproductsin2016.OurownanalysisofdatafromtheOfficeforNationalStatistics(ONS)suggeststhattheEasterholidayisworthapproximatelyhalfabillionpoundstotheUKfoodretailsectoralone.Intermsoffootfall,thebusiestshoppingdayfortheholidayisGoodFriday,accordingtoretailintelligenceagencySpringboard.
Approximately80millionchocolateEastereggswillbesoldintheUKthisyear,andtheaveragechildwillconsumeeightchocolateeggs,accordingtoStatista.KantarWorldpanelestimatesthatUKchocolateeggandrelatedEasterconfectionerysaleswilltotalapproximately£200million.
ShopperparticipationatEasterishigherthanforotherspringevents.A2016consumersurveyconductedbySavvyfoundthat79%ofUKshoppersplannedtobuyEastereggs,while28%plannedtobuyfoodforaroastdinnerand18%plannedtobuyanEastercake.
Approximately57%ofBritswilltaketimeoffworkoverEasterand51%willvisitrelatives,generating£1.2billionindomestictourismspendingovertheholiday,accordingtonationaltourismagencyVisitBritain.WithEasterfallinglaterthisyear,inApril,theweatherovertheholidayweekendwilllikelybewarmer,whichtendstoboostdomestictouristspending.
EasterisalsoapeaktradingperiodforhomeandDIYretailers,asitcoincideswithmanyconsumersgettingstartedontheirgardensandbeginningtoentertainoutside.Increasedspendinginthesecategoriesisduetothestartofthespringseasonandthefactthatshoppershaveafour-dayholidayoverwhichtoshop—suchspendingdoesnotfallintoourEaster-specificestimatesnotedabove.
Thisyear,manyfamiliesarelikelytopurchasefoodandbeverages,cardsandflowersatoneoftwofast-growingdiscounters,AldiorLidl.AccordingtoKantarWorldpanel,theseretailersgrewtheirsalesby14%–15%inthe12weeksendedMarch26(latestavailableresults).Whenwevisitedstores,Aldiwaspromotinghotcrossbuns,winesandEastercakes,whileLidlwasfeaturingdealsonflowers,decorations,lambroasts,andchocolateeggsandbunnies.
Approximately80millionchocolateEastereggswillbesoldintheUK,andtheaveragechildwillconsumeeightchocolateeggs.
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April13,2017
ProspectsforRetailersAsnoted,thesalesfiguresaboveareforspendingforEaster,butretailersalsogainfromtheholidayweekendstretchingtofourdays—andonthatfront,alaterEasterishighlybeneficial,asitlikelymeanswarmerweather,whichboostsspendingonDIY,outdoorlivingandspringapparelcategories.AccordingtotheMetOffice(theUK’snationalweatherservice),Easter2017shouldbethehottestonrecord,whichbodeswellforastrongretailperformanceovertheholidayweekend.ThelasttimeEasterfellthislateinAprilwasin2014.Thatyear,totalretailsalesinAprilincreasedby8.6%yearoveryear,accordingtotheONS,whichsuggeststhatretailerswillseeastrongAprilthisyear,too.
Furthermore,totalUKretailsalesincreasedbyasolid4.7%yearoveryearinFebruary,accordingtothelatestavailabledatafromtheONS.Groceryretailers’salesincreasedby2.3%yearoveryearinFebruary.
AlthoughthesefiguresindicatethatEastersaleswillbestrong,itisimportanttonotethatconsumersaregrapplingwithinflationarypressures,particularlyfoodpriceinflation,whichcouldsoftenspendingondiscretionarycategories.
WhatAreStoresDoing?WevisitedanumberofmajorLondonretailers,bothgrocersanddepartmentstores,lastweek,toseehowtheywerepromotingEastergoodsintheirstoresthisyear.
GroceryRetailersPriceandproductchoiceareessentialsellingpointsforEastergroceryshoppersand,twoweeksaheadofEaster,groceryretailerswereofferingmultiplediscountsandspecials.ThemajorityofgrocersarefocusingonpromotingchocolateEastereggsandbunnies,andmanyarefeaturingroastdinneringredients,wines,dessertcakesandhotcrossbuns.Someofthegrocerswevisitedarealsopushingflowersandseasonaldecorations,butfewareheavilypromotinganyothernonfoodcategories.Notsurprisingly,discountretailersAldiandLidlofferedthelowestpricesforEasterlunchgoods,accordingtoGoodHousekeeping,followedbyMorrisons,Tesco,AsdaandSainsbury’s.
Aldi’sfeaturedEasterpromotionsincluderoastmeats,vegetablesandhotcrossbuns:dealsincludeporklegfor£3.29perkg,cheesecakesfor£2.99andfourhotcrossbunsfor99p.Theretailer’schocolateEastereggpushfocusesonpremiumproductfor£7.99,whilebig-brandmedium-sizedeggsare99pandlargereggsarepricedat£2.49.
ThepricepointsatLidlarelow:private-labelchocolateeggsareofferedattwofor£6.Othersalesincludeitemsforroastmeals(legoflambfor£3.99perkgandallroastvegetablesfor29p/kg)andwine(bottlesunder£5).
Consumersaregrapplingwithinflationarypressures,particularlyfoodpriceinflation,whichcouldsoftenspendingondiscretionarycategories.
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April13,2017
Morrisons’discountsfocusmainlyonchocolateeggs:singleeggsrangeinpricefrom£1to£4,andshopperscanbuythreefor£10.SpecialoffersarealsoavailableforEastervegetablesandbeefjoints.
EasterdisplaysatMorrisonsSource:FungGlobalRetail&Technology
Tescoisfeaturingfreshspringflowersandlargechocolateeggsatthefrontofthestoreandattheendsofaisles.Thegrocerisofferingverylowpricepointsonfooditems:mediumchocolateeggsrangefrom£1.50to£4,andthreecanbehadfor£10.Tescoisalsoofferingavarietyofdealsonsmallerchocolatebunnies(includingthreefor£1).OtherEasterofferingsincludecakes,hotcrossbunsandnonfooditemssuchasplates,Easterdecorationsandbunnytoys.
Waitroseisfeaturingtwobrandedchocolateeggsfor£10andaWaitroseprivate-labeleggfor£4.Theretailerisalsopromotingflowersandroastdinneringredients.
VariousEasterdisplaysatWaitroseSource:FungGlobalRetail&Technology
ThemajorityofgrocersarepromotingEasterflowers,chocolateeggsandbunnies,meatsforroastingandwine.
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April13,2017
Marks&Spencerisfocusingonnonfoodproducts,suchasflowers,decorationsandchampagne.Initsfoodhalls,theretailerisfeaturingeggs,hotcrossbunsandroastdinneringredients,whichareavailableforsamplingintheTastingKitchen.AvarietyofEastereggsandconfectionsarefeatured,withanaveragepricepointof£12.
VariousEasterdisplaysatMarks&SpencerSource:FungGlobalRetail&Technology
NonfoodRetailers
Debenhams,onOxfordStreet,hasarelativelylimitedselectionofEasteritemsandisofferinga50%discountonchocolateEastereggs,whichrangefrom£5to£10.Intermsofproductmerchandising,onlyconfectioneryeggboxesareondisplay.
EasterdisplaysatDebenhamsSource:FungGlobalRetail&Technology
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April13,2017
JohnLewisispromotingdecorativeEasteritems,includingtoyrabbits,Easterbasketsandeggwreaths.Thestorefeaturesavarietyofmass-marketandpremium-pricedchocolates,butin-storemarketingseemsparticularlyfocusedonnonfoodhomewareproducts.
VariousEasterdisplaysatJohnLewisSource:FungGlobalRetail&Technology
SelfridgesandHarrodsareemphasizingproductsmadebyhigh-qualitychocolatiers.BothretailershaveextravagantdisplaysandpersonalizedEastergiftboxesrangingfrom£25to£1,000.Comparedwiththeotherstoreswevisited,thesetworetailersaregivinglittlefocustonon-chocolateitems.
VariousEasterdisplaysatSelfridgesSource:FungGlobalRetail&Technology
VariousEasterdisplaysatHarrodsSource:FungGlobalRetail&Technology
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April13,2017
KeyTakeaways• AccordingtomarketingagencySavvy,UKresidentsspentabout£775
milliononEaster-relatedproductslastyear.Thisyear,weexpectaround£500millioninEaster-relatedpurchasestoflowtogroceryretailersalone.
• ThelatedateofEasterthisyearshouldboostspendingoncategoriessuchasDIYandgardeningoverthefour-dayholidayweekend.
• Thefast-growinggrocerydiscountersareamongthoseaimingtocaptureashareofspendingonEasterfoodsandbeverages,cardsandflowers.
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April6,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
April13,2017
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comEvaKubickaSeniorResearchAssociateKatieMarshallResearch&MarketingAssistantHongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017
FungGlobalRetailTech.com
