retail

September sees “big improvement” in retail sales growth | Business

The BRC has released figures covering the five weeks from 30th August-3rd October 2020, showing a sales increase of 5.6% on a total basis.

In September, UK retail sales increased 6.1% on a like-for-like basis from September 2019, when they had decreased 1.3% from the preceding year.

Over the three months to September, in-store sales of non-food items declined 12.3% on a total and 9.5% on a like-for-like basis. This is better than the six-month and 12-month total average declines of 29.6% and 18.8% respectively. Over the three-months to September, non-food retail sales increased by 5.2% on a like-for-like basis and 3.2% on a total basis.

Online non-food sales increased by 36.7% in September, against a growth of 3.5% in September 2019. This is below the three-month average of 39.7% but above the 12-month average of 26.3%.

“September saw a big improvement in retail sales growth, however sales over the last six months are still down on the previous year,” said Helen Dickinson OBE, chief executive, British Retail Consortium. “Tighter coronavirus restrictions have continued to hold back clothing and footwear, particularly as the Government further restricts social events. With office workers still at home for foreseeable future, the sales of electronics, household goods and home office products have remained high.

“September sales have also given retailers early signs that consumers are starting their Christmas shopping earlier this year, which retailers are encouraging their customers to do in order to manage demand at Christmas and keep people safe. However, store-based sales, excluding food are still in double-digit decline.

“The industry is beginning to recover, however, forced store or warehouse closures during any future lockdowns could put paid to this progress. Retailers have invested hundreds of millions in making their premises COVID-secure, with perspex screens, social distancing, additional staff and hygiene measures.

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Home improvement and stockpiling boost September UK retail sales

Consumers increased spending on improving their homes and stockpiling goods in September in preparation for a tightening of restrictions, providing a boost for retailers.

Sales in the UK rose 5.6 per cent last month compared with the same period a year ago, according to data from the British Retail Consortium and the consultancy KPMG. That was above the six-month average decline of 1.1 per cent and the best annual growth rate of any month since December 2009, it found.

“September saw a big improvement in retail sales growth,” said Helen Dickinson, chief executive at the BRC, whose survey covers about 60 per cent of the industry.

“With office workers still at home for the foreseeable future, the sales of electronics, household goods and home office products have remained high,” she added. In contrast, more time spent at home and the cancellation of public events “have continued to hold back clothing and footwear”.

Line chart of Annual % change showing UK retail sales shift online

Food retail sales also rose in September as shoppers began stockpiling in reaction to possible further restrictions, said Susan Barratt, chief executive at the grocery consultancy IGD, commenting on the BRC data.

The growth in overall retail sales does not mean that high-street retailers are out of the woods, as the shift toward online sales prompted by the lockdown continued.

Online non-food sales last month rose 37 per cent compared with the same period a year ago. In contrast, in-store sales of non-food items were still very depressed.

Retail sales were the first of the main economic indicators to rise above last year’s level back in July as consumers spent money on food and drink rather than visiting restaurants and pubs.

The BRC findings chime with a 2 per cent annual growth in consumer spending in September, according to Barclaycard data also published on Tuesday.

The payments company’s

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4 Stocks to Tap Rising Demand in Retail Discount Stores Space

The COVID-19 outbreak has brought about a major shift in consumers’ buying behavior and spending pattern. With the pandemic taking a toll on employment and household income, consumers are left with no option but to curtail spending. Definitely, measures undertaken to support households and the resumption of economic activities provided some relief but consumers’ hunt for better bargains continue.

Under the current circumstances, people have been showing a preference for discount stores for essentials and other household needs. A differentiated product range resonates well with customers’ spending habits. No wonder, the strategy to sell products at discounted prices has helped industry players expand customer base amid the pandemic.

That said, industry participants have been focusing on deepening engagements with consumers, expanding merchandise assortments, and enhancing digital and data analytics capabilities. They have been making strategic investments to provide consumers fast, convenient and safe shopping experience, be it offline or online.

Keeping in mind consumers’ product preferences and growing inclination toward online shopping, thanks to social distancing and greater stay at-home trends, discount players have been replenishing shelves with in-demand merchandise, and expanding delivery options — curbside pickup or ship-to-home orders — and contactless payment solutions. The companies have also been investing in renovation, improved checkouts and mobile point-of-sale capabilities to keep stores relevant.

It comes as no surprise that discount retailers have succeeded in creating a niche in the retail space. Here we have highlighted four discount retailers that have been gaining from coronavirus-led spike in demand.

4 Prominent Players

Target Corporation TGT: This general merchandise retailer has been making investments to enhance omni-channel capacities, come up with new brands, and remodel or refurbish stores to cater to consumer demand and behavior in the new normal. Markedly, this Zacks Rank #1 (Strong Buy) company witnessed sturdy market-share gains in all

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Texas Retail Renovation in Houston

Crystal Allen

Allen leads the project leasing team to provide consulting, marketing, merchandising and
leasing services to landlords and developers. Her profound expertise covers a range of
asset classes including traditional neighborhood, regional and super-regional shopping
centers, mixed-use developments, lifestyle centers, and entertainment venues. Allen also
provides tenant representation services and market strategy for local, regional and
national retailers and restaurants looking to expand their concepts.
CAREER HIGHLIGHTS:
Prior to joining Transwestern in 2012, Allen worked as a senior leasing agent for Brixmor
Property Group (formerly Centro Properties Group), the second largest owner of open air
neighborhood and regional shopping centers in the nation. With an assigned portfolio of
more than 2.5 million square feet, she correlated the marketing, negotiation, construction
coordination, budgeting and overall execution of transactions with new and existing
tenants. She also played an integral role in multiple redevelopment projects. Throughout
her tenure she was consistently a top producer not only within the Southwest region but
nationally, and she executed more than 2 million square feet of lease transactions alone.
Today, Allen has built a leasing portfolio of more than 3 million square feet of existing and
new developments, and, in the last 12 months has executed transactions that created over
$100 million in value. Crystal Allen currently leases many of the largest, most high profile
projects within the country, and is consistently requested by the company’s premier clients
to represent projects. She is a top producer within the firm, is considered a leader within
the retail industry and a mentor to her team members. Her clients include Brookfield,
Oliver McMillan, DC Partners, LNR Partners, Patrinely Group, CDC, Xenia Lodging, Imperial
Development, Skanska, 4M Investments, Woodridge Capital, Walton Street Capital and
Ley/Wilson Development as well as multiple tenants including Amorino Gelato, Habitat for
Humanity ReStore, Star Furniture,

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Wolfe Research singles out Five Below, At Home and Floor & Decor as retail winners (NASDAQ:FIVE)

Wolfe Research launches coverage on Five Below (FIVE +2.9%), Floor & Decor Holdings (FND +2.5%) and At Home Group (HOME +3.2%) with Outperform ratings.

The firms assigns a price target of $150 on FIVE vs. the average Wall Street PT of $136.50. “In our view, FIVE operates one of the most unique traffic-driven models across all of retail with industry leading new unit economics and an agile merchant team helping to deliver consistent positive comp sales growth through an “on trend” product assortment. We see a clear path towards sustained double-digit new store expansion over the next several years.”

The firms assigns a price target of $84 on FND vs. the average Wall Street PT of $76.16. ” FND continues to benefit from a solid housing backdrop and the potential for sustained momentum in the home improvement sector, specifically a structural shift towards hard surface flooring. As one of the rare new unit growth opportunities across retail, FND should further unlock the benefits of scale in coming years to drive operating margins towards a low double-digit rate.”

The firms assigns a price target of $18 on HOME vs. the average Wall Street PT of $20.29. “Q2 results and trends early into Q3 appear as an inflection point in the trajectory of the HOME business model. We view the pullback in shares post Q2 results as an attractive entry point with a risk-reward tilted favorably from here.”

Compare the three retail stocks side by side.

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