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BDO LLP | RETAIL FORECASTS REPORT 2021
WINNERS & LOSERS
While the pandemic has created a number of losers, particularly those most exposed to locations where footfall has plummeted, and/or selling products for which there is at least temporarily no demand, it has also created a number of substantial winners, particularly among businesses with a strong online or multichannel focus.
WINNERS
ASOS As an internet pureplay ASOS has been able to benefit from the transference of spend online, adding more than more three million customers in the year to 31st August, without having to offset it against a decline in physical store sales. ASOS has also been able to swiftly adjust its product offer to focus on key lockdown product categories in terms of inventory and marketing messages, achieving significant year-on-year growth in items such as casualwear and activewear.
Lululemon Clothing spend throughout 2020 has been driven by loungewear, as consumers have spent far more time at home due to lockdown restrictions and have placed emphasis on improving their health & fitness. As an online retailer in these areas, Lululemon has been perfectly placed to benefit. Amazon The pandemic disruption created a windfall for Amazon, with shoppers turning to the online player for a larger share of their needs. Unlike many other retailers, Amazon was also able to meet the dramatic increase in volume of orders, benefitting from a history of investment in its fulfilment capability and the sheer scale of its logistical capabilities.
Ocado With 2020 seeing grocery shoppers turn to online in huge numbers, Ocado saw considerable revenue growth, with its share price rising to the point where it is valued higher than Tesco, despite possessing just a fraction of its share of the UK food market, also reflecting the value placed on the potential of its technology to assist other retailers in meeting the demands of online shoppers in a more profitable fashion. B&Q With consumers spending more time at home there has been a considerable uplift in DIY and gardening activity. After an initial blow to sales when stores closed, once B&Q began re-opening its shops from mid-April onwards sales have rocketed, while its online sales have been strong throughout.
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