Insightful Data on Retail Trends, Inflation, and Brand Perception: Key Stats for Your Week Ahead

Retail sales volumes flat in February

In February, retail sales volumes stayed the same after going up by 3.6% in January. The Office for National Statistics (ONS) reported a slight decrease of 0.1% in sales values for the month.

Taking a broader view, retail volumes dropped by 1% in the three months leading up to February 2024 compared to the previous year.

Retail sales in February were still 1.3% lower than they were before the pandemic hit in February 2020.

Food stores saw a decrease of 0.3% in sales volumes in February, but non-food sales went up by 0.7%. The increase in non-food sales was mainly due to a 1.7% rise in clothing store sales, according to data from the ONS.

Retailers reported that new collections and promotions contributed to this rise.

Source: Office for National Statistics

‘Ecommerce everywhere’ most important media trend for consumer goods marketers

Consumer packaged goods marketers consider 'ecommerce everywhere' to be the most crucial consumer technology and media trend, with nearly 60% ranking it as one of the most significant. Following closely behind are 'connected TV and streaming' at 56% and 'generative AI' at 55% in terms of importance.

The report explores how consumer goods marketers are using generative AI in their work. Data analysis is the top use case, with 41% of them using it for this purpose. Market research (29%) and copywriting (25%) are also common uses.

The research indicates that there is a creativity/media gap in consumer goods marketing. 94% of respondents feel that their media and creative efforts are not fully aligned.

Source: Mediaocean

Investment community believes brand strategy affects company value

Over three-quarters (76%) of investment analysts and journalists say brand strategy has a moderate to large impact on changes to a company’s price to earnings ratio.

The price to earnings ratio is a measure of a company's share price compared to its earnings per share. It is commonly used to assess the value of companies.

Brand strategy is ranked as the second most crucial factor (19.8%) for investment analysts and journalists when they assess a company's potential, following financial forecasting at 29.1%.

Brand was found to have a greater impact compared to competitive threats (18.6%), macroeconomic factors (17.9%), and senior management reputation (14.7%).

However, even though the investment community recognizes the importance of brand strategy, a research indicates that it is not fully grasped. The study shows that 90% of investment analysts admit to not having a thorough understanding of the positioning and strategy of the companies they are invested in.

Source: Interbrand

Rate of inflation falls to lowest in two and a half years

In February, the rate of inflation dropped to its lowest level in two and a half years. According to the Office for National Statistics, the Consumer Prices Index (CPI) increased by 3.4% in the 12 months leading up to February 2024, a decrease from the 4.0% recorded in January.

The annual rate for February 2024 is the lowest it has been since September 2021, when it was 3.1%.

Prices for food and non-alcoholic beverages increased by 5.0% in the year leading up to February 2024, a decrease from the 7.0% recorded in January. This marks the lowest annual rate since January 2022.

The inflation rate for restaurants and hotels in February was the lowest in two years, standing at 6.0% annually. This figure marks a decrease from January's rate of 7.1%.

Source: Office for National Statistics

Consumer confidence remains lacklustre but some signs of encouragement

Consumer confidence remained unchanged in March, but there are indications of cautious optimism. The latest GfK Consumer Confidence Barometer shows an overall index score of -21, the same as February. This figure is two points lower than January 2024, but higher than the -36 reported in March last year.

The data collected for March was before news of inflation decreasing, however, Joe Staton, GfK’s client strategy director, mentioned that it has captured a "slowly growing sense of optimism" in the outlook for personal finances in the next 12 months, which is currently at 2. This marks the first time the score has been positive in two years.

Additionally, consumers are feeling more positive about their personal situation over the past 12 months, with the score rising by one point to -13.

People's confidence in the general economic situation for the next 12 months has increased slightly by one point to -23. However, their views on the economic situation over the past 12 months have decreased by two points to -45.

Source: GfK

Editor's P/S:

The article presents a mixed picture of the retail industry and consumer behavior. While retail sales volumes remained flat in February, non-food sales saw a modest increase, driven by clothing purchases. This suggests that consumers are still cautious about spending but are willing to indulge in non-essential items.

The article also highlights the growing importance of technology and media trends in consumer goods marketing. Marketers are recognizing the potential of e-commerce, connected TV, and generative AI to engage with consumers. However, there is a disconnect between media and creative efforts, indicating a need for better alignment. Additionally, investment analysts and journalists are placing greater emphasis on brand strategy when assessing company value, although they may not fully understand its implications.