Even as they raise prices, budget brands have an advantage as inflation pushes consumers to trade down to cheaper alternatives.
FINANCE
Primark (UK) is expected to generate £7.8 billion ($9.5 billion) revenue for the year to September 30, 2022, putting it back in line with sales from the 2019 financial year, according to Refinitiv data.
- Primark plans to make ‘selective’ price increases across some of its autumn/winter stock as it faces inflationary pressures.
Asos (UK) has warned that profits could slump to as little as £20 million ($24.4 million) this year, down from over £190 million ($232 million) last year as inflation takes a bite out of consumer spending.
- The company said that it was facing a higher level of return items, suggesting that after making a purchase consumers would reconsider whether they could afford it.
Rent-The-Runway (USA) reported Q1 revenue of $67.1 million, a 100% increase year-on-year. Net Loss was $42.5 million, as compared to $42.3 million a year ago.
- Active subscribers increased 82% year-over-year.
- The company is benefiting as consumers return to pre-pandemic life.
RETAIL
Rising inflation is pressuring retailers and brands to push up prices. However with consumers in most markets feeling increasingly stressed, alongside growing mistrust of just about everything, price hikes could have unexpected costs. Read More
PODCAST
How Brands Can Win on Amazon – and Still Maintain their Margins
Amazon tends to be the elephant in the ecommerce room.
The platform has massive amounts of traffic – which attracts a huge number of sellers to its marketplace, but being able to drive sales on Amazon is getting increasingly difficult – and expensive.
In this podcast you’ll learn:
- How sellers can succeed on Amazon without making a massive investment.
- What sellers need to know to successfully navigate the ‘Amazon Beast’.
- What best selling products on Amazon have in common.
- How even smaller brands can succeed on Amazon – despite the competition.
ECOMMERCE
Amazon’s Prime Day shopping festival is now set to run from July 12 to July 13, The global event is open to Prime members in 20 countries, including the US, Austria, Australia, Belgium, Brazil, Canada, China, France, Germany, Italy, Japan, Luxembourg, Mexico, the Netherlands, Portugal, Singapore, Spain, the UK, Poland and Sweden.
MARKETS
Central banks in the US (+0.75%), UK (+0.25%), Brazil (+0.50%), and Switzerland (+0.50%) raised benchmark interest rates this week in a move to tame inflation.
UK interest rates could rise to 3% by the end of the year, as the Bank of England has to ramp up its measures to fight inflation, per an analyst consensus.
The US economy is now forecast to go into a “mild recession” in 2023, similar to the downturn of 1990-1991,said Wells Fargo in a note to clients. That recession lasted for two quarters with a peak-to-trough decline in real GDP of 1.4%, the bank added.
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