Submitted by Colin Turner, EC Harris, Head of Retail
Biography
Given the tough consumer spending scenarios ahead - at least in the Eurozone countries - it’s going to be a tough year ahead for retailers, but if you look closely the trends are there:
1. Make more of the stores you’ve got. Consumer research suggests that cash-strapped customers are more likely to treat themselves if the store environment is easier to shop and invites them to feel special. Tired stores leak sales, and discretionary sales in particular. Many of the major players are shifting their property spend into brand renewal.
2. Buy don’t build. Expect to see acquisitions that will advance Asda’s ambition to be number one in non-food, Sainsbury’s market entry into China and Alliance Boot’s global health and beauty mission. How quickly acquisitions can be integrated will be a critical success factor.
3. China matters more. Increasingly, the world’s leading consumer brands are identifying China as their most important market - partly due to its size and growth potential, and partly because customer perceptions created here will have global resonance for decades. Expect to see major Chinese retailers acquiring European chains that have fallen on hard times to combine Asian product and supply innovation with Western retail nous.
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