Cost of living crisis has put a dampener on Ramadan celebrations, with over 89 per cent of British Muslims saying costs will impact their Ramadan and Eid plans this year, according to a new research by supermarket group Asda.
Nearly one in five (18%) plan to spend between £20-£30 less on food per week than in 2023, and 17 per cent will have to change cooking techniques due to energy prices.
With a third (36%) admitting they’ll be forced to buy fewer or cheaper alternatives to what they’re used to, over one in ten people (11%) are concerned they won’t know what to cook with the ingredients they’re forced to buy, and 10 per cent are concerned they won’t be able to produce delicious, flavoursome meals.
The research also revealed that when it comes to cooking Iftar and Ramadan meals at home, 72 per cent feel uninspired as to what to cook, 87 per cent resort to convenience over what they actually want to eat, and two-thirds (70%) feel that their meals are lacklustre.
Most shoppers like the use of technology in the stores though frustrations emerge when that tech falls short of expectations, shows a new report, also highlighting retailers' enthusiasm towards adaptation of technology.
According to new insights from the Virgin Media O2 Business Movers Index, 77 per cent of Brits use tech to enhance in-person shopping.
Retailers too are undergoing a digital makeover.
42 per cent have adopted new tech in the last year to improve operations, with a third (30 per cent) aiming to boost sales and customer connections.
This wave of technology investment is driving optimism for 2025, as 82 per cent of retailers express confidence in their business outlook.
One in three Brits (34 per cent) have spent more time in stores or returned due to enjoyable or useful technology, rising to 57 per cent of 25-to-34 year olds.
The top tech features enticing shoppers to visit in person include self-service checkouts (29 per cent), high-speed WiFi (22 per cent), good mobile connectivity (21 per cent), click and collect pick up (21 per cent) and scan and go checkout-free shopping (20 per cent).
While 44 per cent of Brits feel UK retail stores have the right level of technology, frustrations emerge when that tech falls short of expectations.
Over a third (37 per cent ) of shoppers, and 54% of those aged 18-to-24, have left or avoided returning to stores due to complicated or frustrating tech.
Some of the biggest tech frustrations include self-checkout machines (33 per cent ), AI-powered shopping assistance (19 per cent), barcode scanners (18 per cent ) and mobile apps (e.g. scan and go) (16 per cent).
Jessica O’Conner, product director at Virgin Media O2 Business, said, “Retail has faced more disruption in the past five years than the previous twenty-five, with challenges like inflation and rising interest rates.
"Yet, retailers are charging into the year with confidence, embracing innovative tech to transform the customer experience.
"From virtual reality changing rooms to high-speed WiFi, Virgin Media O2 Business is at the forefront, helping retailers create smarter, more engaging in-store experiences for customers.”
Two shops in Cornwall have been ordered to close for three months for selling illegal tobacco.
Truro Magistrates’ Court on Tuesday (25) granted the closure orders for Saltash Smoke Point, Fore Street, Saltash and Zabka, Commercial Street, Camborne.
Devon and Cornwall Police submitted two closure order applications to the court after Cornwall Council’s Trading Standards team supplied evidence of illegal tobacco sales at both premises.
The application was supported by intelligence from members of the public that both shops had been selling illegal vapes, and supplying vapes to under 18s.
The application also included information about the public health risks of illegal tobacco, as well as the potential harm vapes can cause when used by children.
Elizabeth Kirk, team manager at Cornwall Council’s Trading Standards, said: “I’m delighted that we have been able to disrupt the illegal activity taking place at these premises.
“This is a brilliant example of how we work with our partners to target businesses that are not complying with the law and I’d like to thank Devon and Cornwall Police for all their work in securing these orders from the court.
“We will not tolerate people putting our communities at harm and will take action when there is evidence that shops or individuals are supplying illegal products.”
Ruth Goldstein, Assistant Director of Public Health at Cornwall Council, said, “Smoking is responsible for almost 1,000 deaths in Cornwall each year and the sale of cheaper illegal tobacco can cause serious harm to public health because it reduces smokers’ motivation to quit.
Sophie Curtis, Partnership Inspector for Cornwall at Devon and Cornwall Police, said, “I’m pleased at the outcome of these closure orders which send a message that the illegal sale of tobacco products or of illegal, unregulated vape paraphernalia won’t be tolerated in Cornwall.
"The same goes for the sale of vape products, regardless of their provenance, to children. All of these things bring harm to our communities.
“This is one example of effective partnership working. Sara Young, the Vulnerability Lawyer for Devon and Cornwall Police in Cornwall worked closely with Cornwall Council to put together the closure orders based on the work undertaken by Cornwall Trading Standards and the intelligence submitted by members of the public."
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WH Smith branch in Orpington on January 23, 2025 in London, England.
WHSmith has on Friday announced the sale of its UK high street business to Modella Capital, in a move to concentrate on its higher-growth travel retail markets.
The deal, which values the high street business at £76 million on a cash and debt-free basis, will see WHSmith receive gross cash proceeds of £52 million.
The sale marks a significant strategic shift for WHSmith, allowing the management to focus on the substantial growth opportunities within its key travel markets. Over the past decade, WHSmith has increasingly focused on its travel business, which in the last financial year, accounted for 75 per cent of the group's revenue and 85 per cent of its trading profit.
“As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel,” Carl Cowling, group chief executive, commented
The travel business operates across 32 countries and includes major airport locations, hospitals, and rail stations, both in the UK and internationally. The company will continue to trade under its historic 233-year-old brand name within its travel divisions.
“high street is a good business; it is profitable and cash generative with an experienced and high-performing management team. However, given our rapid international growth, now is the right time for a new owner to take the high street business forward and for the WHSmith leadership team to focus exclusively on our travel business," said Cowling.
Under the new ownership, the high street business will be led by Sean Toal, the current CEO of the high street business, and will eventually rebrand as TGJones, following a short transitional period operating under the WHSmith brand. All stores, colleagues, assets, and liabilities of the high street business will transfer to Modella Capital as part of the transaction.
Retailers association welcomes new chapter for WHSmith high street stores
The British Independent Retailers Association (Bira) has welcomed the announcement, while expressing cautious optimism for the future of these important retail spaces.
“The sale of WHSmith's high street business to Modella Capital represents a significant change for the UK retail landscape, but importantly, it appears these stores will continue to operate under new ownership rather than close entirely,” Andrew Goodacre, Bira CEO, said.
“We welcome Modella Capital's investment in these high street locations and hope this will secure the future of these stores, protect valuable jobs, and maintain essential services like Post Office counters that many communities rely upon.
“As champions of retail diversity and vibrant high streets, Bira sees potential in this transition. We hope Modella Capital will bring fresh ideas and renewed investment to these locations.
"The high street continues to face significant challenges, but this acquisition shows there is still value and opportunity in town centre retail when approached with the right business model and investment.”
The Co-op Group has today (28) re-affirmed its commitment to the independent retail sector through the launch of Co-op Wholesale, with its fascia brand being fully retained as part of the suite of services available to Co-op’s independent partners.
Drawing on over 160 years of wholesale heritage, this move re-enforces the Co-op Group’s commitment to drive increased value for independent retailers, whilst fuelling expansion ambitions into broader corporate business to business markets, and vision to deliver the best of Co-op to its trusted partners.
Marking a pivotal milestone in the growth trajectory for the business, Katie Secretan, has also been appointed as the Managing Director for Co-op Wholesale.
Joining Nisa in January 2024, previously holding the position of Retail & Sales Director, Katie has been instrumental in unlocking growth opportunities for both current retailers and prospects, as well as new corporate partnerships and building the foundations to support the businesses ambitious growth targets.
Jerome Saint-Marc, Managing Director for B2B and Growth at Co-op, said, “Our commitment to all our partners remains as strong as ever, to ensure their businesses drive profitable growth now and for generations to come.
"Our move to Co-op Wholesale is a strategic step forward for us and one we’re immensely proud of. It’ll allow us to deliver expansive growth and operational excellence for our B2B partners, bringing them the products they need, at the right price, when they need them.
“With a new leadership team, strategy and vision, we have one clear goal and that is to drive growth by bringing the best of Co-op to our partners. And following the expertise, drive and passion we’ve witnessed from Katie in the last year, I am delighted that she will be stepping into her role to power the business forward.”
Co-op Group launches Co-op Wholesale
Co-op Group
Katie Secretan, Managing Director for Co-op Wholesale, said, “We’re clear that this is more than just a supply relationship. Co-op Wholesale is backed by a business built on purpose and we’ll use our platforms to champion what matters most to our diverse partner base, as we know that we can make greater impact when we work together.
“Under Co-op Wholesale, we’re already making significant growth opportunities through corporate accounts as well as traditional retailers, and we’re looking forward to seeing what we can achieve together.”
Despite the current economic and social headwinds facing the retail sector, the Co-op Group remains committed to and excited by the longer-term prospects for the convenience market and the vital role played by independent retailers within the sector.
With significant buying power, industry-leading quality own-brand products, and a supply chain built for convenience, Co-op Wholesale can deliver an unrivalled proposition that will power growth for both independent retailers and corporate partners alike, in today's fiercely competitive market.
Co-op prides itself on delivering best in class products and its own brand range remains a key differentiator for its B2B proposition.
The brand will continue to innovate in its range, to help its partners stand out from competition and drive greater loyalty with shoppers.
Working in parallel with insight-driven recommendations and category leadership for key convenience missions, this partnership will optimise every store location for maximum impact to drive sustainable growth.
The adaptable model from Co-op Wholesale can help any partner scale and drive sustainable growth, with the flexibility to operate their store to grow, their way.
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Pedestrians carry shopping bags from Selfridges and CANVVS as they walk past shops in central London on March 14, 2025.
British retail sales unexpectedly rose in February, figures from the Office for National Statistics showed on Friday, defying most forecasts from analysts who had predicted a fall against a backdrop of weak overall growth in the economy.
Sales volumes increased by a monthly 1.0 per cent, driven by non-food sales although supermarkets saw a drop after a surge in business in January, the Office for National Statistics said.
A Reuters poll of economists had pointed to a monthly fall of 0.4 per cent in sales volumes. The ONS revised January's month-on-month increase to 1.4 per cent from an initial 1.7 per cent.
“It was a positive month for household goods stores with their largest rise since April 2021, driven by hardware store sales,” ONS senior statistician Hannah Finselbach said, adding clothing sales also picked up due to widespread discounting.
Separate ONS data showed British households saved more money as a proportion of their income at the end of 2024 than at any point in nearly 15 years, apart from during the COVID pandemic.
The household savings ratio rose to 12 per cent in the fourth quarter of 2024, up from 10.3 per cent in the third quarter.
That bank of savings - and the possibility it could be unlocked - is one reason why some economists think tepid economic growth can pick up later in the year.
The ONS on Friday confirmed the economy expanded by 0.1 per cent in the fourth quarter of 2024.
Retail sales volumes for the three months to February rose by 0.3 per cent, the first increase by that measure since the three months to November.
How the economy fares after the imposition of tax hikes on employers, higher regulated energy bills and a raised minimum wage - all taking place next month - is a key question for policymakers.
"Food inflation remains high, meaning consumers are buying less, and retailers will be feeling cautious in the build up to changes to wage costs next week," said Oliver Vernon-Harcourt, head of retail at Deloitte.
Retail sales were 2.2 per cent higher than a year earlier, compared with the median poll forecast for 0.5 per cent annual growth.
This week, clothing retailer Next raised its profit outlook after better than expected trading. But home improvement retailer Kingfisher said consumer sentiment had been dented by measures in the government's budget last October.
The ONS data highlighted a stark contrast between food and non-food sectors, with the latter seeing 3.1 per cent increase in sales volumes. In contrast, food sales volumes fell by 2.0 per cent. Clothing sales showed a rebound, increasing by 2.3 per cent after a previous month's drop.
“Retail sales volumes came in better than expected in February. The trends from last month effectively reversed with food sales falling after a very strong January and non-food categories rebounding following last month's weakness,” Charlie Huggins, manager of the quality shares portfolio at Wealth Club, observed.
“These figures, along with yesterday's better-than-expected results from retail bellwether Next, indicate that consumers are still feeling confident enough to spend despite the gloomy economic headlines.”
However, he cautioned that “retailers are having to work harder than ever before” through “increased levels of discounting,” which could impact profit margins.
Consumer confidence improving
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, echoed this sentiment, stating, “Resilient retailers have dusted themselves off after a challenging December and seen incremental growth at the start of the year. Consumer confidence is improving and widespread discounting has tempted consumers to spend – renovating homes and gardens, bagging the latest iPhone or hitting the sales to update their wardrobes.”
She also pointed to a “20 per cent annual jump in sales” for jewellers, potentially linked to “a gold rush due to rising inflation and economic uncertainty.”
Thomas Pugh, economist at RSM UK, added: “There are finally some signs that the UK consumer is starting to come back to life. Consumer confidence ticked up again in March and the services PMI jumped higher, partly because of strong demand from consumers.”
He anticipates that “strong real household income growth should continue to drive a gradual increase in retail sales this year, even if overall economic growth remains relatively subdued.”
Despite the positive figures, concerns remain about the broader economic landscape. Silvia Rindone, EY UK&I Retail Lead, commented that the February’s retail sales figures continue to reflect a challenging landscape for retailers.
“Despite real wages continuing to grow at a fast pace, this increase has not yet translated into higher consumer confidence, which remains subdued. Ongoing geopolitical tensions and rising wage costs has meant retailers are continuing to navigate an uncertain trading environment,” she said.
However, she expressed optimism for “Easter and school holidays on the horizon” as potential sales boosters, while advising retailers to “remain agile and focused on customer-centric strategies” to navigate the ongoing economic uncertainties.