Supply chain challenges could start easing up, but rising wages for frontline workers are likely to continue to rise this year, putting pressure on brands and retailers.
RETAIL
“A lot depends on what happens to wage inflation,” said Simon Wolfson, CEO, Next. Goldman Sachs has warned of ‘wage inflation everywhere’.
U.S. employers expect to pay an average 3.4% raise to their workers in 2022, according to a Willis Towers Watson survey.
Primark(UK) is to axe 400 jobs in its UK stores as it responds to rising cost pressures, despite a significant bounceback in trading in recent months.
- Sales in the 16 weeks to January 8 reached £2.6 billion ($3.52 billion), a 36% increase over 2020, but 10% below pre-pandemic levels.
- In the US, sales were up 4% (same-store basis) over pre-covid levels, with plans to open 100 new stores this year.
Amazon’s (USA) first clothing store will use artificial intelligence to understand a customer’s preferences and recommend a suitable outfit.
JD.com (China) has opened its first physical stores in Europe, operating under the brand name Ochama.
- Ochama is essentially a robotic operated retailer, a new shopping format merging online ordering and pick-up options in which robots prepare the parcels, and home delivery service.
- The first store in The Netherlands with more locations planned.
Louis Vuitton (France) closed its store at Lotte Duty Free Jeju in December, and will close three more stores at the Shilla Duty Free in Jeju, Lotte Duty Free in Busan and Lotte World Tower in Jamsil, Seoul in March, according to a Moodie Davitt Report.
PODCAST
A Supply Chain Platform for Asian Suppliers
One of the great things about technology is that it has leveled the playing field giving even small businesses access to tools that used to be only available to the big players.
In this episode Bernard Hor, Co-Founder of Hatio Group talks:
How to get started digitizing your supply chain.
Why you need to start small to be big.
The big wins that small to midsize companies can expect from digitizing their supply chains.
FINANCE
Burberry (UK) has upgraded its profit forecast, as it benefits from booming sales of luxury goods.
- Operating profit for the year to March 2022 is forecast to be roughly 35% higher at constant exchange rates than last year’s £396 million (536.7 million).
- Q3 same-store sales to December 25 rose 7%.
Richemont (France) reported Q3 sales (ended December 31) rose 38% compared to 2019.
- In Europe sales rose 42%, making the region the company’s second largest market after Asia Pacific.
Prada (Italy) reported full-year revenues of €3.64 billion ($4.1 billion), up 41% year-on-year, and up 8% from 2019.
MARKETS
UK retailers saw sales rise 2.1% year-on-year in December, according to the latest BRC-KPMG retail sales monitor. It added that like-for-like sales were 0.6% higher than the same month last year.
- Over the three months to December, non-food retail grew 4.8%, while food sales reported a 0.4% rise.
In the U.S. apparel and accessory stores report sales during November to December rose 33.1%, year-on-year. Sportings goods stores’ sales rose 20.9%.
Escada America filed for Chapter 11 bankruptcy saying it was unable to renegotiate leases for more favorable rates.
YOU MIGHT HAVE MISSED THESE ARTICLES
- Using Advanced Data to Make Manufacturing More Flexible – and More Sustainable
- Creating Lasting Value in a World That’s Looking for the Next Unicorn
- Why Personal Connection is Key to Building Resilient Supply Chains
- Decoding the New D2C Sourcing Model
- Consumers Start Looking for a Simple Life
- Could Hainan Become the Next Dubai?
- 8 Emerging Ecommerce Markets to Take Seriously
- Now Who’s The Boss?
- Why Brand Partnerships are Becoming an Essential Retail Strategy
- How Sustainability Has Made Supply Chains More Resilient
- Why Retail Needs a Entertainment First Strategy
- 5 Trends that China’s GenZ Consumers Favor
- Prints that are Sophisticated – and Sustainable
- Why China’s Mall’s Could be the Next Hot Properties
