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Retail News and Trends: 21st February 2019

Sujay Seetharaman
Sujay Seetharaman
Feb 22, 2019
Min Read

1. Brexit could see prices shoot up by 45%

Retail organizations from both countries have warned that a no-deal Brexit could lead to food shortages and price increases as high as 45% on items such as beef and cheese. The British Retail Consortium (BRC), Northern Ireland Retail Consortium (NIRC) and Retail Ireland issued a joint statement saying that a no-deal Brexit would lead to delays in imports at the borders owing to new regulatory checks. This, combined with a weakening sterling would drive up the prices of essentials such as fruit, fish, and vegetables that could squeeze household budgets.

2. UK High Street sees lowest YoY decline in footfall

Latest statistics from Ipsos Retail Performance show that non-food footfall fell 0.8% in the UK compared to the previous year, making it the lowest decline in 3 years, excluding seasonal adjustments. The first week of 2019 was also supposedly the formative time of the month when traffic rose YoY by 6.4% and across all regions of the country. Ipsos retail performance director Tim Denison was quoted as saying that the boost in shopping seems to have come from a combination of falling inflation rates and rising wages.

3. Delivery startup Doordash raises $400M

Delivery startup Doordash announced that it has raised $400 Million in Series F funding. In his conversation with Techcrunch, CEO of Doordash Tony Xu said that he attributed the company’s growth to three factors: its geographic reach (3,300 cities in the United States and Canada), its selection of partners (not just restaurants — Walmart uses DoorDash for grocery deliveries) and DoorDash Drive, which allows businesses to use the DoorDash network to make their own deliveries. Recent data from Second Measure indicates that Doordash has overtaken Uber Eats in U.S. market share for online food delivery and now comes in second to Grubhub.

4. Pinterest files for IPO

San Francisco-based visual search company Pinterest has confidentially filed paperwork with the Securities and Exchange Commission for an Initial Public Offering. It is reportedly working with Goldman Sachs Group Inc. and JPMorgan Chase & Co. to lead its listing, which could come through by the end of June, and is expected to value the company at $12 Billion.

5. Garnier rolls out virtual hair coloring tool in Walmart

Garnier has rolled out its virtual hair coloring tool in 10 Walmart locations. Shoppers can use the display screens in stores to learn about hair color product options and take a one-minute diagnostic test that leverages Modiface’s (acquired by Garnier in March 2018) technology to allow users to virtually try on a range of recommended Garnier shades, Garnier’s press release stated. Walgreens will also be reportedly piloting Garnier’s shade selector in June this year, supplemented by its in-store beauty experts who will give in-person feedback.

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hm.com, operated by H & M Hennes & Mauritz AB, is an internationally-focused online store that generates eCommerce net sales primarily in Germany as well as in the United States and the United Kingdom. With regards to the product range, hm.com achieves the greatest part of its eCommerce net sales in the “Fashion” category.
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