What’s going on in the market?
Detail:
There’s been a lot of uncertainty in the country lately – it seems every facet of life is being pressured into not acting in normal patterns. Volcanic ash clouds have closed the air space; weather fluctuations have kept people from the shops; and let’s not neglect the biggest uncertainty, brought about by the General Elections and the subsequent hung parliament.
Then last week, major supermarket retailer Morrison in a shock announcement said that like-for-like sales growth had fallen from 6.5 per cent over Christmas to just 0.8 per cent over recent weeks. And Sainsbury’s is now also thought to have suffered from a similar sales slowdown, although it is expected to announce a growth in pre-tax profits of 15 per cent to £595 million.
I find all this intriguing, and somewhat disconcerting. Remember when we were in the height of the recession and how supermarkets were pretty much the only big players announcing growth and profits? Reasons given then were more people were staying at home rather than eating out. Value ranges, BOGOFs and special promotions were the name of the game.
Competition among grocers has been fiercely competitive, and sales growth has shrunk as a result of slowing food inflation. Analysts also say rising fuel costs are having an effect and eating into family budgets. Yet Morrison has also put its disappointing figure down to a general market-wide slowdown.
Which brings me to the pet trade. It’s been said to death that the pet trade is recession proof, and that animal lovers will make cuts elsewhere before skimping on their pet.
Yet despite these assertions, the RSPCA and animal rescues have seen a massive upturn in numbers of pets being given up for adoption – and many of these are a direct result of the recession. When you’ve lost a job and the choice is between feeding a family or a pet, the decision is not rocket science. Indeed, this increase in numbers of abandoned animals is one reason why the RSPCA has announced that its national centres will no longer take in animals being brought in for re-homing in an attempt to slash costs.
It is also a fact that many manufacturers, suppliers, distributors, wholesalers ad infinitum have said that they’ve seen good sales during the course of the recession; some have said sales have never been better.
But is something starting to bite? Retailers I’ve spoken to lately are on the more cautious side; the mood subdued. Not sombre, but certainly quieter. Loads of different reasons are given: the election/hung parliament, the weather, general uncertainty, unemployment, the threat of unemployment.
Interestingly enough, it’s all being whispered about in hushed tones, as if voicing it aloud will give shape and form to something that at the moment is almost a shapeless beast.
Are we seeing a delayed reaction of sorts to the recession and a general market slow-down or is this a mere hiccup? One to watch…
Then last week, major supermarket retailer Morrison in a shock announcement said that like-for-like sales growth had fallen from 6.5 per cent over Christmas to just 0.8 per cent over recent weeks. And Sainsbury’s is now also thought to have suffered from a similar sales slowdown, although it is expected to announce a growth in pre-tax profits of 15 per cent to £595 million.
I find all this intriguing, and somewhat disconcerting. Remember when we were in the height of the recession and how supermarkets were pretty much the only big players announcing growth and profits? Reasons given then were more people were staying at home rather than eating out. Value ranges, BOGOFs and special promotions were the name of the game.
Competition among grocers has been fiercely competitive, and sales growth has shrunk as a result of slowing food inflation. Analysts also say rising fuel costs are having an effect and eating into family budgets. Yet Morrison has also put its disappointing figure down to a general market-wide slowdown.
Which brings me to the pet trade. It’s been said to death that the pet trade is recession proof, and that animal lovers will make cuts elsewhere before skimping on their pet.
Yet despite these assertions, the RSPCA and animal rescues have seen a massive upturn in numbers of pets being given up for adoption – and many of these are a direct result of the recession. When you’ve lost a job and the choice is between feeding a family or a pet, the decision is not rocket science. Indeed, this increase in numbers of abandoned animals is one reason why the RSPCA has announced that its national centres will no longer take in animals being brought in for re-homing in an attempt to slash costs.
It is also a fact that many manufacturers, suppliers, distributors, wholesalers ad infinitum have said that they’ve seen good sales during the course of the recession; some have said sales have never been better.
But is something starting to bite? Retailers I’ve spoken to lately are on the more cautious side; the mood subdued. Not sombre, but certainly quieter. Loads of different reasons are given: the election/hung parliament, the weather, general uncertainty, unemployment, the threat of unemployment.
Interestingly enough, it’s all being whispered about in hushed tones, as if voicing it aloud will give shape and form to something that at the moment is almost a shapeless beast.
Are we seeing a delayed reaction of sorts to the recession and a general market slow-down or is this a mere hiccup? One to watch…
By:
Sandra
Date/time :
10/05/2010
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