Your Retail News Roundup

ICYMI: At RetailOasis, we recognise the importance of staying ahead in the ever-changing retail environment. To support your growth, we've compiled a selection of insightful articles that we consider essential for industry leaders. These articles highlight innovative and emerging trends, providing valuable perspectives to enhance your strategic decisions.

MORE THAN HALF OF US GEN ZERS ARE HEADED TO TIKTOK SHOP THIS SEASON

With over half of U.S. Gen Zers planning to shop on TikTok Shop this season, retailers are ramping up their digital marketing efforts to engage this younger demographic. Notably, 43% of Gen Z shoppers intend to spend more this holiday season compared to 37% of millennials, with social platforms like TikTok and Instagram driving their gift choices. Retailers are investing in social media ads, with 57% of U.S. businesses and nearly 40% globally using this strategy to reach younger audiences. As inflation pressures rise, 80% of businesses are offering discounts, reflecting the priority Gen Z places on good deals and value for their holiday shopping. Read more.

HOW THE BIG SUPERMARKETS TRY TO GET INSIDE YOUR HEAD

The Australian Competition and Consumer Commission (ACCC) has initiated legal action against supermarket giants Coles and Woolworths for allegedly misleading customers with deceptive discount practices. Shoppers reported significant price fluctuations on items raising concerns about the authenticity of discounts and promotional pricing. Supermarkets utilise psychological tactics, like illusory discounts, to entice consumers to spend more, often eroding trust in these brands. As a result of these tactics, both Coles and Woolworths have seen declines in consumer trust, with competitors like Aldi gaining favour among shoppers. Read more.

BLACK FRIDAY / CYBER MONDAY: RETAILERS BRACE FOR HEAVY DISCOUNTS IN NOVEMBER

As Australian retailers prepare for Black Friday and Cyber Monday, they're anticipating a significant discounting period in November to help navigate challenging economic conditions. The National Retail Association (NRA) highlights subdued discretionary spending, with many retailers struggling due to high interest rates and cost-of-living pressures. Despite forecasts indicating an average holiday spending drop from $1,192 in 2023 to $1,002 this year, there remains a strong desire among consumers for specific products, with 62% stating they’d pay full price if necessary. Additionally, upcoming spending on Valentine’s Day and Halloween is projected to decrease, underscoring the need for retailers to tailor their offerings to attract budget-conscious shoppers while still providing the must-have items. Overall, the sector is calling for greater government support and a more favourable regulatory environment to bolster growth and protect jobs. Read more.

CAN NIKE DO IT? SHOE GIANT’S AUSTRALIAN PROFITS DIP IT FIGHTS TO RECLAIM RELEVANCE.

After a tumultuous tenure marked by declining sales and controversial digital transformation strategy, John Donahoe has stepped down as CEO of Nike. His departure follows a dramatic $28 billion drop in market capitalisation after a dismal earnings report, highlighting the company’s struggle to balance digital innovation with core product excellence. As Nike pivots back to its roots under new CEO Elliott Hill, the sportswear giant faces the daunting task of regaining its edge in a market increasingly dominated by agile, innovative competitors. Can Nike become cool again? Read more.

SHEIN WORKERS HAVE HAD IT - AND THEY’RE GOING PUBLIC

Videos from Shein warehouse workers in China reveal tough working conditions, with employees enduring long shifts and skipping breaks to meet productivity targets and earn higher wages. Many workers are hired through temporary labour agencies, allowing Shein to avoid offering full-time benefits, though this practice exceeds legal limits. Workers’ pay is based on how much they can produce, but earnings can fluctuate with demand, leaving some struggling to make enough money. Shein claims compliance with local labour laws, but experts argue the system allows companies to cut costs at the expense of worker rights. Despite these challenges, workers share their experiences through videos, often using humour to cope with the harsh realities of their jobs. Read more.

MOST HOLIDAY SHOPPERS WILL BUY A GIFT FOR THEMSELVES THIS YEAR

JLL's holiday shopping report reveals that 83% of holiday shoppers plan to buy gifts for themselves this year, up from 76.2% in 2023. Shoppers expect to spend an average of $1,261, a 31.7% increase from last year, with 46% of their budget allocated to gifts. Approximately 71% of shoppers will use multiple channels, with many starting their holiday shopping early, particularly those aged 30 to 44. While JLL predicts increased holiday spending, Bankrate reports that a third of shoppers intend to spend less due to inflation. Nevertheless, both Adobe and Deloitte anticipate an overall increase in retail sales this holiday season. Read more.

THE GEN Z ‘UNDERCONSUMPTION’ TREND: THE CANARY IN THE COAL MINE?

The Gen Z “underconsumption” trend on TikTok is catching attention as younger consumers, particularly women, proudly showcase how they’re spending less and making the most of what they have. This shift comes amid financial pressures like inflation and rising housing costs, with 33% of Gen Zs admitting to a shopping addiction, according to Credit Karma. National brands are already feeling the impact, as Gen Z opts for cheaper private-label goods, reflecting a broader move away from materialism. Retailers should pay close attention, as this shift could signal a long-term change in spending habits and priorities. Read more.

CITI’S RETAIL PULSE – AUGUST STRONG, SEPTEMBER STEADY

In this report compiled by Citi's Director of Retail and Gaming Research, Adrian Lemme revealed the August retail sales data showed strong overall growth, with most categories seeing improvements. Supermarkets and liquor sales showed notable acceleration, and the household goods sector is expected to further improve into Q4. Non-food retailing in September has been steady, consistent with August, as high-frequency data indicated similar conditions. Consumers remain resilient, with the Stage 3 tax cuts likely contributing to spending increases. Citi maintains a positive outlook on the sector, favouring companies like Harvey Norman, JB Hi-Fi, Premier, and Super Retail, as retail momentum is expected to grow towards Black Friday. However, risks such as a weakening jobs market or stricter monetary policies could pose challenges. Read more.

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