Monday February 5 2018 THE NATIONAL MOTORCYCLE MUSEUM, BIRMINGHAM
talking trade WILL JONESHousewares Sector Director of the British Home Enhancement Trade Association (BHETA) Join the in-store revival in 2018 A
s we enter the New Year, it’s no surprise that online retailing remains one of the big drivers. But it’s also
interesting to read predictions suggesting that from next year, bricks and mortar may well start to show a comeback. As housewares online is pretty much mature, its phenomenal growth is likely to show some signs of slowing. Perhaps more interesting is the thought that consumers are hankering after more engaging and enjoyable shopping experiences. Last year, we saw the British public splash an
extra 12% on entertainment. So it’s worth giving some thought to the fact that a good destination shop can offer one of the best combinations of purchasing, outing and food and drink consumption around. A blend of experiential marketing, in-store
theatre, gifting and leisure-time treats can be used successfully to lure consumers back into real shops, where they can touch and taste. For all the convenience and potential speed of online, certain shopping experiences are better for some ‘tangibility’. Personal service, informed advice and the sales that can result from time taken to steer a customer through a world of choices with genuine interest and attention should not be under-estimated. Cynically, that may be just a ‘sell-up’ or a ‘cross-
sell’, but it may be that in the end the repeat purchases that will result over time are in fact the most valuable. And then there is the product trial: testing a knife or a pan for balance in the hand does, surprise, surprise, benefit from a real opportunity to do so. Providing a rewarding experience can be just
as beneficial. Just consider the sales achieved in the consumer show environment, by product demonstration, food tasting, customer participation, exclusive courses, and exclusive offers to see the potential. It’s already noticeable how many BHETA
housewares members are finding renewed success in bricks and mortar with a more inventive and creative approach. It takes investment, but there is some evidence that the value of the real shopping experience may be finding renewed favour with consumers. Providing all round satisfaction is, of course, the best of all possible worlds. And whether you are a supplier or a retailer, finding ways to combine in-store values with the possibility of online convenience, peer review and price comparison can be a winner.
Consumer Price Index November 2017 The Consumer Price Index (CPI) including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.8% in November 2017, unchanged from October 2017. The CPI 12-month rate was 3.1% in November 2017, up from 3% in October 2017; it was last higher in March 2012. The largest upward contribution to change in both the CPIH and CPI rates came from air fares, which fell between October and November but by less than a year ago. Rising prices for a range of recreational and cultural goods and services, most notably computer games, also had an upward effect. Falling prices in the miscellaneous goods and services category (eg travel goods and financial services) provided the largest offsetting downward contribution.
Retail Sales November 2017 The underlying pattern in the retail industry in November 2017, as suggested by the three-month on three-month measure, remains one of growth - with the quantity bought increasing by 0.8%. When compared with October 2017, the quantity bought in November 2017 increased by 1.1%, with household goods stores showing strong growth at 2.9%. Retailers’ feedback suggests that Black Friday events contributed to the monthly increase in household goods stores, with electrical household appliances making the largest contribution to the growth. The year-on-year growth rate shows the quantity bought increased by 1.6%. Total average store prices increased by 3.1% in November 2017 compared with the same period last year, with price increases across all store types. In particular, food stores had the largest price increase of 3.6% since September 2013.
Mortgage Approvals October 2017 According to the Bank of England, net lending secured on dwellings was broadly unchanged at £3.4 billion in October 2017. Underlying this were increases in gross lending and repayments due to
increases in remortgaging activity. Total mortgage approvals increased slightly in October 2017. Within this, remortgaging approvals increased to 51,593, the highest since October 2008. House purchase mortgage approvals fell slightly to 64,575 in October 2017.
House Price Index October 2017 Average house prices in the UK increased by 4.5% in the year to October 2017 (down from 4.8% in September 2017). The annual growth rate has slowed since mid-2016 but has remained broadly around 5% during 2017. The average UK house price was £224,000 in October 2017. This is £10,000 higher than in October 2016 and £1,000 lower than last month. The main contribution to the increase came from England, where house prices increased by 4.7% over the year to October 2017, with the average price in England now £241,000. Wales saw house prices increase by 4.5% over the last 12 months to £153,000. In Scotland, the average price increased by 2.8% over the year to £144,000. The average price in Northern Ireland stands at £132,000.
Labour Market August-October 2017 Estimates from the Labour Force Survey show that between May to July 2017 and August to October 2017, the number of people in work fell, the number of unemployed people also fell, and the number of people aged from 16 to 64 not working and not seeking or available to work (economically inactive) increased. There were 32.08 million people in work, 56,000 fewer than for May to July 2017 but 325,000 more than for a year earlier. The employment rate was 75.1%; lower than for May to July 2017 (75.3%) but higher than for a year earlier (74.4%). There were 1.43 million unemployed people (people not in work but seeking and available to work), 26,000 fewer than for May to July 2017 and 182,000 less than a year earlier. The unemployment rate was 4.3%, down from 4.8% for a year earlier and the joint lowest since 1975.
Construction Output November 2017 This is the first monthly construction output release to include VAT data from 87,000 businesses on top of the 8,000 in the Monthly Business Survey. Construction output contracted for the sixth consecutive period in the three-month on three- month time series, falling by 2% in November 2017. This represents the largest fall since August 2012. There were three-month on three-month decreases in both all new work, and repair and maintenance, which fell by 2.1% and 1.7% respectively, although private housing new work did grow by 1.2%. Despite the overall three-month on three-month fall, construction output increased by 0.4% month-on- month in November 2017. The month-on-month increase in construction output occurred as a result of a 0.5% rise in repair and maintenance, and a 0.4% increase in all new work.
Commodity Prices December 2017 According to the World Bank, energy commodity prices gained 2% in December 2017 - the sixth consecutive monthly gain - led by a 6% increase in coal prices. Metals and mineral prices gained less than 1%. A large gain in iron ore (up 12%) was offset by declines in zinc and nickel. Precious metals prices declined 2%, led by a 1% decline in gold.
Foreign Exchange Analysis Reuters - December 21 2017 Sterling traded flat on December 21 in a quiet market, after falling initially following a survey that showed consumer sentiment had fallen to a four-year low and news that the deputy prime minister had been forced to quit. The pound edged lower following the resignation, but data showing British public finances had strengthened in November helped the pound recover.
1 GBP = 1.13 EUR 1 GBP = 1.33 USD
Source: BHETA Economic Snapshot – December 2017
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