Archive for January, 2021

On paper, a Covid-driven Christmas didn’t look good for retail. But while the season was unpredictable, the sector fared better than many had predicted.

Here are some reasons why, against the odds, retailers have some reasons to celebrate.

More organised shoppers

One reason to celebrate was that the shape of Christmas trading was different than previous years, reports Retail Week. Rather than last-minute panic buying, consumers decided to get organised.

This was helped by many retailers launching their Black Friday events earlier than usual to encourage customers to start buying earlier.

And many consumers did just that. Driven by concerns about the availability of products and disruption in supply chains, Christmas gifts and groceries were bought in plenty of time, creating a longer, more rounded festive period in sales.

A boost in grocery sales

Some of the biggest Covid Christmas winners were grocery retailers. As many consumers’ festive plans were brought to a halt in the lead-up to Christmas as more restrictions were introduced, supermarkets and food retailers stepped in. A range of festive food to feed smaller gatherings was snapped up in the week before Christmas, as consumers prepared for a very different Christmas.

With pubs and restaurants being forced to shut, Brits kept their celebrations at home. According to data from Kantar, shoppers spent £11.7 billion on groceries during December. 

So what did we eat? Sprouts remained popular, as did cheese, fresh fish, pork joints and alcohol. Not so popular were turkeys and Christmas puddings – an indication of fewer mouths to feed and pared-back celebrations.

Many supermarkets, as well as local independent food stores, saw a boost in sales. Sainsbury’s Christmas grocery sales jumped 7.4%, while M&S boss Steve Rowe said it had delivered a robust Christmas performance “beneath the Covid clouds”. 

Trading moves online

With non-essential shops having to close as tougher restrictions were brought in, retailers with a strong online presence saw sales remain high.

In fashion, party wear took a back seat while sales of loungewear increased. Retailers that were able to modify production according to these different demands had the most success.

According to PwC director Kien Tan: “Covid has taught winning retailers how to […] manage stock better. I don’t think we have mountains of unsold stock this year.”To find out how we can help you create powerful communications that deliver impact and boost sales, get in touch with The Delta Group team today.

With the rollout of the Covid vaccine underway, businesses and consumers alike are searching for the new normal. Technology is advancing at ferocious speed and the pandemic continues to shape consumer habits and expectations.

It’s not easy making predictions during such unpredictable times, but key trends highlighted by Internet Retailing and Forbes suggest how the shopping experience will change this year. Retailers need to be ready. 

Retail spaces become experiential

The physical shop is no longer the final destination in the purchase journey. This year will see a strong focus on a more hybrid retail model – merging the best bits of in-store and online shopping. That could mean customers booking in-store sales appointments to experience a product before ordering online, or retailers driving up engagement through more interactive content – e.g. gamification online or safe, limited access events in-store.

Greater investment in in-store tech

Technology is going to be key in enticing customers back into physical shops. By merging AI with location technology, the in-store shopping experience can become faster, more streamlined and contactless. With new and improved mobile apps, retailers can also offer consumers a more personalised experience – everything from real-time stock checks to instant product collection either from a specific parking space or on entering a store.

Retailers are making larger investments in digital signage, too. The technology can serve a range of purposes – for instance, it can be used for wayfinding, to push store-related or safety messages, or double up as advertising canvasses to display dynamic, targeted ads to customers as they walk around the store.

Voice of consumer input

Companies need to work hard to put the customer first. During these uncertain times, listening to the customer is the best way to anticipate upcoming changes. Voice of consumer input can help inform everything from new products and pricing to marketing. The sooner the retail industry adopts the voice of the customer as standard business practice, the sooner they can start to regain some sense of certainty.

The changing face of the high street

As stores start to re-open, we can expect to see a rise in ‘digital first’ shops – retailers that know what consumers want or prefer (even before the customer knows themselves). Ecommerce is at an all-time high, meaning retailers are looking at ways to repurpose physical stores to help meet the increasing online demand. Whether that takes the form of shop floors turning into fulfilment centres or greater collaboration and sharing of these spaces, businesses will be looking at ways to keep costs down and customer spirits high.

To find out how we can help you create immersive customer retail experiences that deliver impact and boost sales, get in touch with The Delta Group team today.

Some good news from 2020 – the two millionth tonne of Packaging Recovery Notes (PRNs) was traded on 22 December, marking the first time this environmental milestone has been achieved within one calendar year.

As Resource explains, PRNs are certificates demonstrating that a business has recycled or recovered a tonne of packaging, or exported it for recycling overseas. They are traded on the Environment Exchange (t2e) platform, where they are bought by packaging producers as a way of contributing to the cost of recycling their products and reducing the environmental impact of their business. 

The PRN system forms a key part of the Producer Responsibility Obligations (Packaging Waste) Regulations 2007. The regulations apply to companies which manufacture, convert, pack or retail more than 50 tonnes of packaging every year and have an annual turnover of at least £2 million. They cover packaging made of paper, glass, plastic, steel, wood and aluminium.

So, this latest announcement is a real step forward in the drive to make the packaging industry cleaner and greener. 

Locking in prices

The announcement was made by t2e’s Managing Director Angus Macpherson, who said: “Despite a year of challenging market conditions caused by Covid-19, over 2 million tonnes (t) were traded through t2e in 2020.

“A difficult year has seen a 22% increase in Forward trading with participants looking for certainty by locking in prices as well as benefiting from the reduced Forward fees.

“The 28 Day Rolling Market, which launched earlier in the year, has also proved attractive to participants with its extended settlement date, with a total of 148,130t traded. The 28 Day Rolling Market will reopen on the 1st February 2021.

“We would like to thank all our participants for their continued support in these tumultuous times.”

Sustainable packaging and printing

At the Delta Group, we applaud all initiatives aimed at improving sustainability in packaging. What’s more, we can help your company harness the latest trends. 

Take our wide-format, single-pass Nozomi printer. It prints directly onto corrugated materials rather than print and mount, removing process and saving time.

Sustainability principles are always at the forefront of our business. We procure materials from eco-friendly sources with low energy consumption and optimum water usage. We are now also using 100% green electricity. To find out more about our sustainable business model, or our Nozomi printing solutions, contact us today.