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Coronavirus round-up: Aldi, Hammerson, Ikea, Boots and Mothercare on Covid-19

We’re reporting on the effect of the Covid-19 coronavirus pandemic on the way UK shoppers buy – and on how retailers are responding to that changing behaviour. This update comes as 19,522 positive cases have been confirmed by Public Health England as of 9am on March 29 and 1,228 people have died.

  Fashion buyers find new ways to talk to suppliers: analyst

Now that non-essential travel is on hold, technology is now taking a front seat in communication between clothing brands and their suppliers, says one analyst.

  Michelle Russell, apparel correspondent at data and analytics company GlobalData says: “Buyers are now having to rethink how they work with manufacturers on orders and product design.”

  Russel says UK clothing and homewares retailer Next is looking at a number of different scenarios to make up for the lack of face-to-face contact with its suppliers, including video conferencing. Its teams would previously have travelled to factories to work on new product development, but are now asking manufacturers to send samples over. Video conferencing, with one sample at each end, is helping to recreate the process.

  Software companies are also stepping in to help, particularly as more employees start working from home to try and stop the spread of the virus.

  Russell says: “Companies are now having to find new ways of staying in touch that they maybe haven’t considered previously. So having the right technology in place to enable a company to keep communication flowing across its supply chain has now become imperative if they want to remain operational.

  “Next says it will come out of the process with the ability to communicate with potentially more manufacturers than it was previously, and this may be the case for many retailers and brands. They will inevitably find more efficient and cost effective ways of working once this pandemic is over and normal business is resumed.”

  Independent online retailers see online orders rise

Independent online retailers in the UK are taking, on average, 23% more orders this March than in 2019, according to new data from James and James Fulfilment. Categories from health supplements to store cupboard ingredients have benefited in particular, with some seeing a triple-digit growth in orders between the last week of February and third week of March.

  There is not only increased demand for essentials, but also home entertainment and fitness products, such as board games, journals and yoga mats. This suggests that shoppers are considering their families’ mental wellbeing, as well as physical health, as they self-isolate at home.

  The fashion and beauty sectors have fared less well, with decreased orders across accessories, clothing, cosmetics and jewellery.

  The data is based on the order volume of nearly 300 independent online retailers. James Hyde, chief executive and co-founder of James and James, said: “It’s clearly an uncertain time for people, who are adjusting to new ways of living at home, and retailers, who are struggling with peaks and troughs in demand. With retail being such an important part of the economy, it’s vital that we pull together to support both our current clients and any other retailers that are looking to ecommerce to survive.

  “With lockdown now in force, companies like ours will play an ever-critical role over the coming months, in getting essential products to the people who need them – after all, for every 1,000 orders delivered to homes, we remove the need for 1,000 visits to shops.”

    Ikea converts stores to ecommerce fulfilment centres

Ikea is converting its stores into ecommerce fulfilment centres. Services including drive-through click and collect and contactless deliveries are operating as the homewares retailer puts stores that are now closed to work to support online sales. Currently around 282 out of 380 Ikea stores around the world operated by Ingka Group are temporarily closed, although all of its stores in China have now reopened, except for the one in Wuhan.

  In-store, customers and co-workers are being protected with increased hygiene practices, new routines and physical distancing in order to make stores safe locations for online orders to be packed. The retailer is also launching its mobile app (pictured) into more countries.

  “We are still adjusting to this new reality but are doing all we can to ensure business continuity for the future and continue to make people’s lives at home better,” said Jesper Brodin, chief executive of the Ingka Group which owns the Ikea brand.

  “We do not know when this challenge will be behind us, but by working together we believe we will emerge stronger than ever,”

  The retailer says it will waive rents and service fees to occupants of the shopping centres that it runs as long as shops are closed as a result of government action. It is also promising in-kind support worth €26m to those affected by coronavirus. In the 30 countries where it operates, its businesses will prioritise the needs of high risk groups and those leading relief efforts as they supply items such as beds, bedding, food and toys to hospitals, medical centres and shelters.

  The retailer says it’s a priority to ensure that it can secure the livelihoods of as many of the more than 166,000 people it employs around the world as as possible. As well as keeping operations open through ecommerce, its also offering extra parental leave for those at home with children and providing more flexible working arrangements. A long-term plan will develop as the situation evolves.

  “We are guided by a simple, yet powerful vision of creating a better everyday life for the many people,” said Brodin. “It is forever part of our business and guides us no matter how good or challenging times are. Our focus is now on accelerating the actions we are taking to help the communities most affected and supporting the many people and our partners across the world.”

    Aldi gives emergency workers priority access to its stores

Supermarket Aldi says that NHS, police and fire service workers will now get priority access to its stores at any time of the day.

  Emergency workers with a relevant ID will be able to get into stores as soon as social distancing guidelines in force in any given shops allow.

  Aldi says the move means that “those who may be finding it hard to shop for groceries due to working long shifts to protect others will not have to wait in queues outside store before being able to buy what they need”.

    Hammerson says it will work with its tenants

Hammerson says that it is working with the retailers who occupy shopping centres and retail parks at a time when non-essential shops are now closed in line with government guidance. Around 4% of the shops in its flagship shopping centres are currently deemed essential shops that are able to continue trading.

  The retail developer and centre operator says in a Covid-19 update today: “We believe we should support our occupiers, particularly smaller and independent brands that are less resilient to the closure of their space in our centres. We have received a variety of requests for rent deferrals, monthly payments and waivers, which we are reviewing on a case-by-case basis, taking into account the business model and risk profile of the occupier, alongside the aid made available by the relevant governments.”

  The company said that by the end of March 27 it had received 37% of its rents due on the March quarter day (March 25). When adjusted for agreements to defer or move to monthly payment, 57% of rent has been paid. The figures were expected to increase as temporary agreements are put into practice. So far, 35% of rent in flagship sites has been paid, and 55% of rent that is currently expected. On its other sites, including retail parks, 49% of rent has been collected, and 61% of expected rents.

  In France its centres are all closed except for essential retailers (3% of rents), while in Ireland essential retail accounts for 8% of its rents.

Hammerson has decided to pull its dividend for the 2019 financial year, and says it is suspending all existing guidance on earnings, income, assets and cashflow. The business currently has access to £1.2bn in unused lending. “We will continue to closely monitor the developing situation and update the market as appropriate,” it said today.

    Online shoppers face long queues for service

The Boots website today illustrates the kind of waits that shoppers are facing for service.

  Visitors to the website this morning were faced with queues of around an hour to be able to buy online. When InternetRetailing visited the Boots website just after 9.30am today, it was 44,768 in the queue, with more than an hour to wait.

    Mothercare expects ’material impact’ on short-term revenues

Mothercare says it is feeling the effect of Covid-19 on its business at a time when it has “substantially completed” its transition from retailer to brand and is now ready to grow its business in partnership with franchisees around the world.

It expects a “material impact” on short-term revenues through its franchise partners around the world as shops close and customers stay at home.

  The company says that about 430 retail staff, who work in its Boots Mini-Club business, are now on furlough while head office staff work from home. In the UK, it now expects that it will see its products sell online and via branches of Boots towards the end of the summer. The full story is here.

  Image courtesy of Ikea

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[gymclothesonline]

Gym Clothes Is Also An Activewear Manufacturer Ireland, Promoting 50% Off Sports Wear

Gym Clothes is also a yoga apparel manufacturer in Ireland that also provides custom-made sportswear.

[gmiresearch]

Sports Apparel Market Research Report

Sports Apparel Market

The GMI Research's latest analysis reveals that the Sports Apparel Market is slated to register a significant CAGR over the forecast period. This is attributed to the drastically shifting lifestyles of people, rising health awareness, improved marketing strategies utilized by players, and growing government's aim towards sports activities in various regions.

Request for a FREE Sample Report on Sports Apparel Market

Sports Apparel Market’s leading Manufacturers:

·         Adidas AG

·         Nike, Inc.

·         Puma SE

·         Under Armour Inc

·         Ralph Lauren Corporation

·         Umbro International

·         Fila Holdings Corp.

·         Lululemon Athletica Inc.

·         New Balance Athletic Inc.

·         Columbia Sportswear Company

Sports Apparel Market Dynamics (including market size, share, trends, growth, forecast, and industry analysis)

Key Drivers

The global sports apparel market is predicted to witness an upsurge in demand during the forecast period due to the drastically shifting lifestyles of people, rising health awareness, improved marketing strategies utilized by players, and growing government's aim towards sports activities in various regions. With rapid urbanization, there has been an increase in population, which consists of working people and youth, thereby resulting in an interruption in lifestyles. This lifestyle negatively impacts the daily life of people, which various issues like anxiety, stress, obesity, and others. Thereby, people globally are drastically shifting their focus toward a healthy lifestyle with physical activities and nutritious food. Physical activities decrease anxiety, enhance body image, and relieve stress. Such improved advantages have surged the focus of people towards yoga, gym, Zumba, dance, aerobics, and other activities. According to the sports apparel market analysis, growing physical activities produce the demand for sports apparel as they are more protective and comfortable than casual outfits.

In the era of digital transformation, organizations in the market have begun utilizing online marketing strategies, which improves the growth of the sports apparel market size. Apart from television advertisements, marketers have started aiming at a special group of people through social media and campaigns, fitness blogs, fitness influences, and others. Brands also endorse their products by celebrities, which boosts the popularity of the target audience. Improved marketing strategies by various organizations are propelling the growth of the sports apparel market share in terms of revenue worldwide.

Gender Segment Drivers

Based on gender, the market is segmented into men, children, and women. Women is projected to rise at a faster CAGR over the coming years due to the rising number of working women, which surges their focus toward a healthy lifestyle and growing participation in women in sports activities. In addition to this, women are more inclined in terms of clothing trends, which raised their focus toward sports apparel.

Distribution Channel Segment Drivers

Based on distribution channel, the market is segmented into supermarket/hypermarket, e-commerce, brand outlets, and discount stores. E-commerce is predicted to increase at a higher CAGR due to the rising internet penetration, the e-commerce sector is growing significantly. E-commerce platforms offer an improved shopping experience to customers, which aids them in comparison to real-time products and easy availability of products.

Sports Apparel Market Segmentation:

Segmentation by End-User:

·         Children

·         Men

·         Women

Segmentation by Distribution Channel:

·         E-commerce

·         Supermarket/Hypermarket

·         Brand Outlets

·         Discount Stores

Segmentation by Region:

·         North America

o   United States of America

o   Canada

·         Asia Pacific

o   China

o   Japan

o   India

o   Rest of APAC

·         Europe

o   United Kingdom

o   Germany

o   France

o   Spain

o   Rest of Europe

·         RoW

o   Brazil

o   South Africa

o   Saudi Arabia

o   UAE

o   Rest of the world (remaining countries of the LAMEA region)

About GMI Research

GMI Research is one of the leading market research and consulting company that offers consulting services, syndicated research reports, and customized market research reports. We help our client to make informed business decisions and provide market intelligence studies related to the various industries such as automotive, energy, healthcare, chemicals, technology, and other sectors. Our research teams include seasoned analysts and researchers have hands-on experience in every regions, including Asia-pacific, Europe, North America, and the Rest of the World. Our market research report provides in-depth analysis, which contains refined forecasts, a bird's eye view of the competitive landscape, factors impacting the market growth, and several other market insights to aid companies in making strategic decisions. Featured in the ‘Top 20 Most Promising Market Research Consultants’ list of Silicon India Magazine in 2018, we at GMI Research are always looking forward to help our clients to stay ahead of the curve.

Media Contact Company Name: GMI RESEARCH Contact Person: Sarah Nash Email: enquiry@gmiresearch.com Phone: Europe – +353 1 442 8820; US – +1 860 881 2270 Address: Dublin, Ireland Website: www.gmiresearch.com