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Retail Trends 2018

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The Deloitte Retail Trends 2018 looks at how retailers fared over the Christmas trading period and who were the winners and the losers. We also share predictions for the year ahead and this year we are seeing 3 key themes which you can explore here.

Published in: Business

Retail Trends 2018

  1. 1. Retail Trends 2018 January 2018
  2. 2. Consumers under pressure The continued growth of online Discounters gaining share Cost pressures rising As predicted… perfect storm hits retail in 2017 Pressure mounts on retailers
  3. 3. Cost reduction Consolidation at large space retailers Landlords mega deals Increase in administration As predicted… perfect storm hits retail in 2017 The industry responds CLOSEDCLOSED
  4. 4. Christmas 2017 update The numbers are in In store £35.2bn +3.4% Online £8.2bn +9.4% 2/3 £2 out of every £3 spent on Christmas day was on mobile. On Black Friday, there was a record £1.4bn spent, which was up by 11.7%. +6.4% Data shows that general merchandise sales were up 6.4% online but down 4.4.% in-store. (BRC) -5.5% In-store footfall year-on- year for the 5 weeks to 30 December was down by -5.5%. (Springboard/BRC) £1bn UK consumers spent £1bn on food this Christmas, where the 22 December was the biggest grocery shopping day ever. (Kantar) 2017 CHRISTMAS SALES £43.4BN +4.4%
  5. 5. Christmas 2017 update What characterised the winners this Christmas? FOOD RETAILERS ONLINE DISCOUNTERS NEWNESS AND EXCITEMENT
  6. 6. Christmas 2017 update Looking ahead to 2018: A better year for the UK consumer? -3 -2 -1 0 1 2 3 4 5 6 1/1/2008 7/1/2008 1/1/2009 7/1/2009 1/1/2010 7/1/2010 1/1/2011 7/1/2011 1/1/2012 7/1/2012 1/1/2013 7/1/2013 1/1/2014 7/1/2014 1/1/2015 7/1/2015 1/1/2016 7/1/2016 1/1/2017 7/1/2017 Earnings - Average weekly earnings % change TOTAL Total inflation Source: Thomson Reuters DataStream The rate of inflation is forecast to reduce during 2018 And wage growth is expected to rise Therefore we may see some easing of pressure on consumers disposable incomes. % Growth in Average Wages vs. CPI Inflation
  7. 7. Reimagine the store • Be more than a store • Put digital in your physical • Selling online in-store Experiment with experience • Shop in magical reality • Get personal with AI • Design for the eye Transform your business • Try, try, try before you buy • Answer the direct question • Discover the value in your values What’s next for retail? Retail trends for 2018
  8. 8. This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte LLP accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Deloitte LLP is the United Kingdom affiliate of Deloitte NWE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NWE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms. © 2018 Deloitte LLP. All rights reserved. Designed and produced by The Creative Studio at Deloitte, London. J14574

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