Week in Review

January 22, 2023

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Week in Review | Jan. 21, 2023

“After years of lockdowns and restrictions, people now crave meaningful connection across all facets of life—including e-commerce,” said Shopify.

FINANCE

Fast Retailing (Japan) reported Q1 2023 net profits fell 9.1% to ¥85 billion ($646 million). Consolidated sales rose 14.2% to ¥716.3 billion yen ($5.53 billion).

The company kept its full-year net profit forecast at $1.77 billion (¥230 billion), down 15.9% from the previous fiscal year, taking into account the impact of a weak yen.

Boohoo (UK) said revenue fell 11% year-on-year to £637.7 million for September to December 2022. It expects sales in its financial year to February to come in 12% lower, as consumers reduce discretionary spending.

Burberry (UK) reported global sales rose 1% in the three months to December, below its 2% target and sharply down from the 11% growth reported in the previous quarter.

Sales plunged 23% year-on-year in China, but rose 19% across Europe when China dropped its Zero Covid policy in early December and tourists came flocking back.
Japan, South Korea and the southern Asia Pacific region also performed well, with low double-digit growth.

Reiss (UK) said sales grew by 20.3% year-on-year in the nine weeks to January 7. Store sales rose by 18.5%, while online sales were up 22.3%.

The company joins a growing list of retailers to report ‘strong’ Christmas sales and a return to in-person shopping.

FatFace (UK) reported sales rose 9% year-on-year to £136 million for the 26 weeks to November, boosted by ‘bumper’ Christmas trading. Sales rose 34% for the five weeks to January 7.

The company noted that demand for women’s knitwear and dresses was high.

Nordstrom (USA) has said it expects annual revenue growth to be at the low end of its previous expectation of 5 percent to 7 percent.

Net sales at Nordstrom Rack fell 7.6% in the nine weeks to Dec. 31.
Annual profits are forecast to be less than previously expected on the back of greater discounting and inventory issues at its Rack stores.

PODCAST

Turning Your Website into a Sales Generating Machine

Most companies think the best strategy is to make themselves look as much like everyone else – or as much like the market leaders – as possible.

Their website adopts a similar look. Their logo follows the same style. Promotional material looks like what everyone else is doing.

In this podcast Matthew Stibbe, CEO at Articulate Marketing, a UK marketing agency, that’s created powerful marketing strategies, content and campaigns for clients including Microsoft, Google and HP.

You’ll Learn:

How using an educational approach can differentiate your product in the market.
Why your website needs to be a portal – not a barrier to entry
How even basic products can stand out in a crowded market.

🎧 Listen to the podcast

FASHION RETAIL

Bangladesh Could Be Next Big Consumer Market

Best known as a manufacturing heavy weight, Bangladesh is expected to join other emerging South and Southeast Asian consumer markets.

A population of 167 million people is seeing a rise in purchasing power as salaries continue to increase, per HSBC Global research.

This could one more opportunity for mass market brands that are looking for growth markets. Read more

RETAIL

Marks & Spencer (UK) plans to open 20 large stores as part of a £500m plan to rejuvenate its presence on the high street after bumper Christmas trading. It intends to open eight “full-line” stores, offering clothing, homeware and food.

M&S said that during Holiday 2022 it took its biggest share of the clothing and homeware market in seven years.
Under its five-year plan its fleet of 247 stores would transition to 180 “full-line” sites and it would open more than 100 food sites.

UK retail sales unexpectedly fell 3.2% year-on-year in December as cost-conscious consumers cut back on spending in the run-up to Christmas in response to higher prices, per the Office of National Statistics.

Clothing (+1%) and household goods shops (+ 1.5%) provided the only bright spots during the month.

US holiday sales grew 5.2% year-on-year during the November through December season, per Census Bureau data. However, December sales fell 1.1%, according to the Commerce Department.

MARKETS

TECH BLOODBATH. Google (USA) announced that it will lay off 12,000 employees, joining nearly every other tech giant in cutting headcount. This brings the total Silicon Valley staffing cuts to over 200,000.

CONFIDENT CONSUMERS. Global consumer confidence inched up in December. Germany experienced the largest increase in consumer confidence from November to December, with the Morning Consult Germany Index of Consumer Sentiment (ICS) rising 11.4%.