As an uncertain Christmas approaches, how retailers have fared in the past few months offers sobering reading. It also shows where the pain points are and what 2022 may have in store.
As food sales are set to surge this week, Ocado has seen a drop in revenues as, despite rising customer numbers, average order value has fallen. The retailer blames supply chain and labour issues, but it is more likely the impact of re-opening of stores and consumers looking at where they can save money on burgeoning food costs.
On the other hand, fashion and garden retailer Joules has seen its fortunes continue to blossom for much the same reasons. Opening stores has seen its revenues rise, with online still significant, but less so compared to its stores. It has also seen a surge in gardening sales, a new area for the company.
A glimpse of what 2022 may offer has also been revealed this week, with TikTok outlining some of the key retail successes in 2021, which a separate study shows just how the metaverse is set to impact brand marketing.
TikTok’s annual review shows just how well Asos, Very, JD, Co-op, MAC Cosmetics and more have done with the social channel this year, presaging how TikTok may also soon be leveraged for ecommerce in the year ahead. As we reported last week, it is making a foray into selling direct from its feed, so expect more in 2022 from these brands and more.
Meanwhile, a new study reveals that a third of gamers are now seeing games as their main channel to discovering new brands. It may not sound like much, but this is the beginning of the rise of the metaverse if brand and retail marketing and something that we could be seeing a lot more of in the year ahead.
We are also set to see a lot more emphasis on green issues in retail. Shoppers are already changing how they shop to buy ‘better not more’ as they look for value. In fashion this shift is particularly pronounced, with 60% of consumers worldwide now looking for fashion brands to do more to promote how green they are, as well as how consumers can recycle and reuse clothes.
Mobile too is on the agenda for change in 2022, with more users using apps – but being more careful about the data they share – while big data is set to underpin all of the above. Much to look forward to in 2022, see you there.