June 2024 brought a significant setback for the UK retail sector as poor weather conditions deterred shoppers, resulting in a notable 1.2 per cent drop in retail sales volumes. This decline starkly contrasted with the 2.9 per cent increase witnessed in May 2024.
The year-over-year performance also saw a slight decline, with sales volumes falling by 0.2 per cent compared to June 2023. Moreover, the figures were 1.3 per cent below the pre-pandemic levels of February 2020, according to the Office for National Statistics (ONS).
Several factors have been cited by retailers for this downturn. Uncertainty surrounding the UK General Election on July 4, adverse weather conditions, and reduced foot traffic have all played a role in dampening retail sales.
Despite these challenges, there was a silver lining in the form of consumer confidence. The GfK consumer confidence survey, released on July 19th, revealed that consumer sentiment in Britain inched up to its highest level since September 2021.
Amid this turbulent retail landscape, Jisp-powered stores have bucked the broader market trend and instead experienced a rise in footfall during the June period, reporting impressive key performance indicators (KPIs) for June:
Shoppers: A year-over-year (YoY) increase of 17.13 per cent and a month-over-month (MoM) rise of 5.38 per cent. Repeat Customers: A YoY surge of 26.34 per cent and a MoM growth of 7.22 per cent.
The rise in footfall at Jisp powered stores during a period of overall retail decline highlights the effectiveness of Jisp’s approach in creating a resilient retail environment. As traditional retailers grapple with fluctuating sales and external pressures, Jisp continues to demonstrate how technology and customer-centric strategies can drive performance and foster loyalty.
In conclusion, while June 2024 presented numerous challenges for the UK retail sector, the standout performance of Jisp powered stores offers a beacon of hope. By prioritizing customer engagement and loyalty, Jisp has not only weathered the storm but has also set a new benchmark for success in the retail industry.
Commons Business and Trade Committee has called for legally binding timeframes on Government at each stage of processing claims under the Horizon Convictions Redress Scheme, backed by financial penalties awarded to the claimant if the deadlines are missed.
As mentioned in the report titled "Post Office and Horizon scandal redress: Unfinished business" released by Commons Business and Trade Committee on Wednesday (1), just £499 million of the £1.8 billion set aside for financial redress has been paid out across the four redress schemes, with 72 per cent of the budget for redress still not paid.
In the case of the Horizon Shortfall Scheme, 14 per cent of those who applied before the original 2020 deadline have still not settled their claims.
The Committee found that the “schemes are so poorly designed that the application process is akin to a second trial for victims” with an excessive burden placed on claimants to answer complex requests for information about their losses in the scandal, and delays processing those requests and disclosures back from the Post Office.
On the scheme administrators’ side, legal advice has been extensive and costly. To date, Post Office Ltd has spent £136 million on legal fees relating to the redress schemes, including £82 million to just one firm, Herbert Smith Freehills, for services including their legal advice on the HSS and Overturned Convictions Scheme.
Victims however have been offered no legal advice up-front in submitting their claims, despite being required to grapple complex legal concepts about the amount of redress they were owed.
The committee also mentioned that many years had passed and the victims no longer had access to the financial records of where Horizon’s systemic errors had occurred. The Committee says it is “imperative” now that claimants are offered legal advice up front, at no cost to themselves but paid for by the scheme administrators.
Chair of the BTC Rt Hon Liam Byrne MP said, “Years on from the biggest miscarriage of justice in British legal history, thousands of Post Office Horizon victims still don’t have the redress to which they’re entitled for the shatter and ruin of their lives.
“Ours is a nation that believes in fair play and the rule of law. Yet victims told us that seeking the redress to which they’re entitled is akin to a second trial. Payments are so slow that people are dying before they get justice. But the lawyers are walking away with millions.
“This is quite simply, wrong, wrong, wrong.
"The government has made important steps forward. Almost half a billion pounds of redress payments are now out the door, the budget has gone up to being fully funded and the Post Office was ordered to write to everyone who might be owed something for what happened to them.
“But we can’t go on like this. Justice delayed is justice denied. So today, we’re setting out a practical, common-sense plan to reboot the redress system.
“Victims should have upfront legal advice to help make sure they get what’s fair. We need hard deadlines for government lawyers to approve the claims with financial penalties for taking too long. Crucially, we need the Post Office, which caused this scandal in the first place, taken out of the picture.”
The Committee calls on Government to remove the Post Office from administering any of the redress schemes and to introduce binding timeframes for scheme administrators at each individual stage of each scheme, with financial penalties passed on to the claimant if these deadlines are not met.
The MPs have also asked the Government to appoint an independent adjudicator for each scheme and empower them to provide directions and case management to ensure claimants move through the process swiftly.
The Government is also called on to provide clear, strong instructions to taxpayer-funded lawyers to maximise the speed of redress, eliminate legal delays, enhance the benefit of doubt given to claimants, and publish the costs spent on lawyers for the public and Parliament to see.
The majority of UK households are heading into 2025 feeling financially secure, but more people think the health of the economy is worsening than improving, a recent report has shown.According to KPMG UK’s Consumer Pulse survey, nearly three times more people feel secure (fifty-seven percent) than insecure (twenty-one percent) about their financial situation.
While the picture for financial security is largely positive, consumer opinion regarding the health of the UK economy was more mixed – with four in ten consumers saying the economy is worsening, compared to a quarter saying it’s improving.
Pessimism about the UK economy is highest among two-thirds of those aged sixty-five and over, with those aged 25-34 the most optimistic. Regionally, London is the most upbeat, with the North East the most downbeat about the economy.
A wage rise would be the most likely reason to increase an individual’s spending beyond 2024’s levels.
A third of consumers say that retailer promotional events could convince them to part with more money during the course of the year, with a quarter saying improved loyalty scheme prices would.
Reflecting upon the findings, Linda Ellett, head of consumer, retail and leisure for KPMG UK, said, “Whether due to confidence in their ability to spend or their ability to manage household bills, it is positive news that the majority of UK households are heading into 2025 feeling financially secure.
“Despite four in ten people saying the UK economy is worsening, a higher amount than those thinking it is improving, planned spending on big ticket items over the next twelve months looks healthy. Whether that spend comes to fruition will depend on a range of factors, including continued reduction in interest rates and whether perception about economic worsening becomes a reality in the form of increased job insecurity.”
Comparing their spending in the last three months (Sept, Oct, Nov) to the previous (June, July, Aug), groceries was the number one category for those spending more money while eating out was the activity consumers most commonly spent less money on.
A quarter of consumers reported buying promotional or discounted items more over the last three months, while half of consumers said they bought big ticket items – most commonly on a holiday, followed by household appliances.
Price was the top purchasing driver for both everyday purchases and one-off higher cost items.
Ellett added, “Promotional periods and the value consumers place on loyalty pricing throughout the year have all demonstrated that shoppers remain savvy when it comes to searching out better deals.
"This will continue in 2025 and our research shows that up to a third of consumers may increase their overall spending levels if retailer offers are sufficiently appealing to them.
"Retailers will be looking to capitalise on this by using customer data and AI to ensure offer targeting is increasingly personalised in the coming twelve months.”
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Vape products are displayed for sale on October 27, 2024 in London, England
The Scottish Government has been urged to introduce a robust licensing system for vape and tobacco sales as part of its regulatory strategy.
Currently, retailers in Scotland are only required to register to sell tobacco and vaping products, with no licensing fees and limited enforcement mechanisms.
Gillian Mackay, the Scottish Green health spokesperson, argued that this lenient system has enabled vape sales to proliferate in unconventional locations such as barbers and phone shops.
Mackay is advocating for a licensing framework similar to alcohol sales, where local councils have the authority to refuse licenses and impose stricter penalties on non-compliant retailers. Unlike the current system, which relies on fixed penalty notices with limited financial impact, the proposed scheme would involve more stringent repercussions, including the potential for license revocation.
“The tobacco and vaping industries are doing a huge amount of damage to the health of people in Scotland and beyond, yet they remain very poorly regulated,” Mackay said. “A robust licensing scheme can tip the balance and ensure that we are taking action to put health before the profits of an industry which all too often targets young people and encourages addictive and harmful behaviours.”
Mackay highlighted the forthcoming ban on disposable vapes as a critical milestone for public health. However, she added that retailers must also contribute by providing recycling points and services, potentially as a condition of their license.
“Local authorities should have the power to refuse licences and introduce proper repercussions including the removal of a licence for retailers who flout the rules,” Mackay said. “We also need retailers to play their part by making their licence conditional on providing recycling points and services.”
Additionally, she proposed that a licensing fee could not only cover administrative costs but also generate revenue for local councils to support essential services.
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Totally Wicked store at its head office in Blackburn
Vaping firm Totally Wicked has reported a pre-tax profit of £8.1 million for the financial year ending March 31, 2024, more than doubling its previous year’s profit of £3.3 million.
The Lancashire-based company said the “continuing growth” of single use vapes, particularly in convenience and grocery channels, has been a “disproportionate driver” of the strong growth, with turnover also surging to £118.1 million, up from £90.4 million the prior year and £54.4 million in 2022, according to its latest filing to the Companies House.
The financial results, however, come as the UK government confirmed in October 2024 that the sale of single-use disposable vapes will be prohibited from June 2025 in the UK. Additionally, a vaping products duty of £2.20 per milliliter of e-liquid is set to be introduced from October 1, 2026.
Addressing the upcoming regulatory changes, Totally Wicked stated: “There are concerns that introducing so many new regulations at once could adversely impact smokers and former smokers by restricting access to vaping products, potentially leading to increased tobacco use. However, we believe the combination of the licensing scheme and the new tobacco vaping duty will result in enhanced HMRC enforcement against illegitimate sellers, creating significant opportunities for legitimate operators like Totally Wicked.”
The company’s UK turnover climbed from £77 million to £96.9 million, while European turnover rose from £12.9 million to £20.8 million. However, sales in other regions declined slightly, falling from £441,696 to £396,079.
Segment-wise, wholesale turnover increased sharply from £53.8 million to £76.4 million, and retail turnover grew from £16 million to £18.9 million. Online and telephone sales also showed growth, rising from £20.6 million to £22.7 million. To support its expanding operations, the company’s headcount increased from 372 to 411 during the year.
In a statement, the board noted a shift in consumer preferences toward cost-effective and environmentally sustainable vaping solutions. “Our owned channels to market have enabled customers to transition to more sustainable products and strategically advantageous branded propositions earlier than would be possible through third-party routes,” the statement said.
Lidl said its sales exceeded £1billion in the four weeks up to 24 December for the first time, as the discounter celebrated its most successful Christmas yet.
Lidl added that it increased its British supply base by 20 per cent this holiday season, stocking its shelves with locally-sourced festive favourites at the lowest prices. Over 16 million British pigs in blankets were sold, including new Deluxe flavours such as maple, cheese, and cranberry. British turkeys proved again to be the festive staple, with one sold every second, while three quarters of a roasting joints were enjoyed across the country.
Lidl Plus grew its user base by over a quarter year-on-year, with 75 per cent more customers taking advantage of its weekly discounts. In December, Lidl also brought festive cheer with its Advent Calendar campaign, which saw more than 1 million customers engage daily for surprises and promotions.
Lidl’s partnership with Neighbourly saw around 1.25 million meals being donated in December, while the supermarket provided £125,000 in festive grants to local charities, helping bring Christmas magic to those who needed it most. Additionally, Lidl’s nationwide Toy Bank scheme invited customers to donate toys to children who might otherwise go without, resulting in almost 100,000 toys being distributed as Christmas presents.
“For three decades, Lidl has been providing households with access to unbeatable quality and value at Christmas. This year, we were thrilled to welcome more customers than ever before. That’s a strong reflection of the trust our customers place in us and the dedication of our colleagues and suppliers, who work so hard to deliver an outstanding Christmas for the communities we serve,” Ryan McDonnell, chief executive at Lidl GB, said.
“In 2024, we continued to raise the bar with product innovation, especially within our Deluxe range, as well as supporting all the community initiatives that are deeply important to us. It’s all been about bringing people together and sharing the joy of Christmas.
“Looking ahead, we’re excited to build on our momentum, growing our presence across the country and continuing to deliver the highest quality at the best prices on the market.”
This update comes after Lidl revealed it experienced the highest growth in customer visits of any supermarket last year, as part of its FY23 results.