22 BDO LLP | RETAIL FORECASTS REPORT 2021
RETAIL IN THE AGE OF COVID-19
Total health & wellness market size (£m) and growth rate
CONSUMERS RE-ASSESSING HOWTHEY SHOP ANDWHATTHEY NEEDTO BUY
26,811
25,882
+3.6
24,739
+4.6
The arrival of COVID-19 has had a huge impact on many different aspects of consumers’ lives, from their day-to-day routines to the attention they pay to their health and wellness. Recent years had seen consumers moving towards a ‘little and often’ shopping model. The restrictions of the pandemic regulations have reversed this trend and have seen a switch to less frequent but bigger shops, especially in grocery. Tesco reported that in April its number of transactions nearly halved, but the size of the average basket doubled. Shoppers are now visiting shops with purpose, visiting fewer stores per trip, but with conversion rates increased. With shoppers prioritising health to a greater extent than pre- COVID-19, a number of health, wellness and fitness related products and categories have generally performed well. With many gyms having to close or reduce capacity, gym and health equipment is among the categories to see massive demand, with home hot tubs, fitness apps and grooming kits just some of the categories to see considerable growth on the back of lockdown trends. Moreover, consumer interest in health & wellness is set to remain a key trend in coming years, leading to huge growth in related retail categories. Moreover, tips on personal health and wellbeing remains the main type of information consumers want from brands during the pandemic, with 33% of UK consumers in October 2020 stating this is the type of information they are looking for in brand communications, exceeding any other subject.
+27.1
19,462
2020
2021
2022
2023
Source: GlobalData. ‘Health &Wellness’ includes sportswear, home gym equipment, fitness trackers & digital products, sleep wellness products, house plants and other categories related to consumer health & wellness
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